Relates to establishing a tree removal and emerald ash elimination credit

Title of bill

An act to amend the tax law, in relation to establishing a tree removal and emerald ash elimination credit

Purpose or general idea of bill

The purpose of this bill is to allow for an individual taxpayer to utilize a personal income tax credit when he or she incurs costs for tree removal, as recommended by a certified arborist or forester, or costs for tree treatment for infection of emerald ash borer.

Summary of specific provisions

Section one of the bill adds a new subsection ccc to the tax law to establish the tax credit for tree removal or tree treatment from emerald ash borer infection.

Section two establishes the effective date.

Justification

The Tree Removal and Emerald Ash Elimination (TREE) Credit will assist homeowners across New York State who are incurring costs because of an infection of the emerald ash beetle.

According to the DEC, "The emerald ash borer is responsible for the destruction of over 50 million ash trees in the U.S. since its discovery in Michigan." With approximately 900 million ash trees in New York State, this beetle is a huge threat. Homeowners across the state are either required by localities to remove the trees or follow the advice of arborists to avoid later destruction that is possible from a falling dead tree. Each tree removal can cost an average of $500. Beyond that, the DEC estimated that the "annual contribution of forest-based manufacturing and forest related recreation and tourism to the New York State economy is over $9 billion."

One way or another, New Yorkers are losing to the emerald ash. To counter this invasive species, this bill establishes two personal income tax credits. One credit is for the removal of an infected tree, as recommended by a certified arborist or forester, who determines that a tree has been irreparably infected by the emerald ash borer. The second credit is for the costs of insecticide treatment injections when a tree has a likely invasion of emerald ash. Most of these injections are directed into the trunk of an ash tree, from where the insecticide travels through the tree's vascular system and is distributed throughout the tree. Other injection options include soil injections or drenches, lower trunk sprays, or protective sprays to the trunk, main branches, and foliage. Treatment injections cost approximately $53 per 17 inch diameter tree for two years and must be applied for a couple years at least to stave off total destruction of a tree.

After either removal or treatment of a tree, the homeowner may apply for a tax credit against his or her tax liability. The removal credit shall be for 50% of the cost of removal, capped at $300 per tree. The treatment credit shall be for the lesser of $100 or 50% the cost of treatment per tree.

Prior legislative history

None.

Fiscal implications

Maximum of $25 million to the state.

Effective date

180 days after enactment.