What's happening
This bill creates a tax credit for New York farmers who purchase biodiesel fuel for use in their farming equipment.
Why it matters
Targets farm fuel costs directly. By providing a refundable tax credit for biodiesel used in farm equipment, the bill reduces operating costs for New York farmers, potentially improving their bottom line and making biodiesel a more attractive fuel option.
Incentivizes cleaner energy use. The credit specifically rewards the use of biodiesel blends, supporting a shift away from traditional diesel and encouraging the adoption of renewable, lower-carbon fuels in agricultural operations.
Defines eligibility and limits. The bill sets clear definitions for who qualifies (farmers with a majority of income from farming) and for what (only purchases of biodiesel blends meeting recognized industry standards), ensuring the incentive is well-targeted and not overly broad.
Refundable benefit, not just a deduction. If the credit exceeds a farmer’s tax liability, it is treated as an overpayment and refunded (though with no interest), making the benefit accessible even for farmers with low taxable income—important for small or struggling operations.
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Who cares
Headline styles
Tax Credit for Biodiesel Farms
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Print number 1700a
- Amend and recommit to ways and means
- Referred to ways and means
- Referred to ways and means
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Tax Credit for Biodiesel Farms
In Senate Committee · Investigations And Government Operations · Sponsor Robert Ortt
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1700--A
2017-2018 Regular Sessions
IN ASSEMBLY
January 12, 2017
Introduced by M. of A. HEVESI, BARRETT, SANTABARBARA -- read once and referred to the Committee on Ways and Means -- recommitted to the Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to providing a tax credit to farmers who purchase biodiesel fuel for the operation of their farm equipment
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 210-B of the tax law is amended by adding a new subdivision 53 to read as follows:
53. Credit for biodiesel fuel used in farming equipment. (a) Allowance of credit. A taxpayer that is a business principally engaged in farming, as such term is defined in paragraph nineteen of subdivision (b) of section eleven hundred one of this chapter shall be allowed a credit against the tax imposed by this article for the purchase of qualified biodiesel fuel to be used in farming equipment in this state. Such credit shall be $0.01 per percent of biodiesel per gallon of qualified biodiesel fuel, not to exceed twenty cents per gallon, purchased by such taxpayer during the taxable year and used in farming equipment.
(b) For purposes of this subdivision, the following definitions shall apply:
(1) "Biodiesel" shall mean a fuel comprised exclusively of monoalkyl esters of long chain fatty acids derived from vegetable oils or animal fats, designated B100, which meets the specifications of American Society of Testing and Materials designation D 6751.
(2) "Qualified biodiesel" shall mean a fuel that is a mixture of biodiesel and diesel motor fuel.
(c) Application of credit. In no event shall the credit herein provided for be allowed in an amount which will reduce the tax payable
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02457-03-8
A. 1700--A 2
to less than the higher of the amounts prescribed in paragraphs (c) and (d) of subdivision one of section two hundred ten of this article. However, if the amount of the credit allowed under this subdivision for any taxable year shall exceed the taxpayer's tax for such year, the excess shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section one thousand eighty-six of this chapter, provided, however, that no interest shall be paid on such refund, notwithstanding the provisions of subsection (c) of section one thousand eighty-eight of this chapter.
§ 2. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows:
(ccc) Credit for biodiesel fuel used in farming equipment. (1) Allowance of credit. A taxpayer whose federal gross income from farming for the taxable year is at least two-thirds of excess federal gross income shall be allowed a credit against the tax imposed by this article for the purchase of qualified biodiesel fuel to be used in farming equipment in this state. Such credit shall be $0.01 per percent of biodiesel per gallon of qualified biodiesel fuel, not to exceed twenty cents per gallon, purchased by such taxpayer during the taxable year and used in farming equipment.
(2) Definitions. For purposes of this subsection, the following definitions shall apply:
(A) "Excess federal gross income" means the amount of federal gross income from all sources for the taxable year reduced by the sum (not to exceed thirty thousand dollars) of those items included in federal gross income which consist of (i) earned income, (ii) pension payments, including social security payments, (iii) interest, and (iv) dividends. For purposes of this paragraph, the term "earned income" shall mean wages, salaries, tips and other employee compensation, and those items of gross income which are includible in the computation of net earnings from self-employment. For the purposes of this paragraph, payments from the state's farmland protection program, administered by the department of agriculture and markets, shall be included as federal gross income from farming.
(B) "Biodiesel" means a fuel comprised exclusively of monoalkyl esters of long chain fatty acids derived from vegetable oils or animal fats, designated B100, which meets the specifications of American Society of Testing and Materials designation D 6751.
(C) "Qualified biodiesel" means a fuel that is a mixture of biodiesel and diesel motor fuel.
(3) Application of credit. If the amount of the credit allowed under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section six hundred eighty-six of this article, provided, however, that no interest shall be paid thereon.
§ 3. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2018.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.