What's happening
This bill creates a tax credit for New York farmers who purchase biodiesel fuel for use in their farm equipment.
Why it matters
Direct financial incentive for farmers. By providing a refundable tax credit for biodiesel purchases, the bill reduces fuel costs for farmers who transition from conventional diesel, helping to offset potentially higher upfront costs of biodiesel.
Promotes use of renewable fuels in agriculture. The legislation specifically targets biodiesel blends used in farm equipment, encouraging wider adoption of cleaner-burning, renewable fuels within a sector that relies heavily on diesel engines.
Potential environmental benefits. Increased biodiesel use could lower greenhouse gas emissions and other pollutants from farm operations, supporting New York’s broader climate and sustainability goals.
Eligibility tailored to active farmers. The credit is structured to benefit those whose principal business is farming or who derive a significant portion of their income from farming, ensuring the tax break is focused on working agricultural producers rather than hobbyists or passive landowners.
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Who cares
Headline styles
Tax Break for Biodiesel Farms
Plain English, a few words. Used as the page title.
Sponsors
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History
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
263
2019-2020 Regular Sessions
IN SENATE (Prefiled)
January 9, 2019
Introduced by Sen. ORTT -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
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 to less than the amount prescribed in paragraph (d) of subdivision one
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02200-01-9
S. 263 2
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 (jjj) to read as follows:
(jjj) 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, 2020.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
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
Purpose or general idea of bill
To create incentives for farmers to use homegrown biodiesel for opera- tion of their farm equipment rather than petrogas.
Summary of specific provisions
Section 1 and 2: Establishes a tax credit of $0.01 per percent of biod- iesel per gallon, not to exceed twenty cents per gallon purchased by a taxpayer that is principally engaged in farming.
(b) - Defines Biodiesel and Qualified Biodiesel
(c) - Establishes the application of the credit. Section 3: is the Effective Date
Justification
Studies have shown that diesel fumes contain particulate matter which can trigger asthma attacks and other respiratory ailments in children and that levels of diesel fumes are up to four times greater inside a bus than ambient levels. Diesel exhaust is classified as a probable human carcinogen by many government authorities including the state attorney general. In addition, dark particles from diesel fuel have been found embedded in glacial ice contributing to rapid melting of polar ice. By giving incentives to farmers to use biodiesel it encourages responsible farming and allows farmers an economic incentive to use such products.
Prior legislative history
06/01/07 Referred to Ways and Means 01/09/08 Referred to Ways and Means 06/19/08 Held for Consideration in Ways and Means 05/06/10 Referred to investigations and Government Operations S2989C/A7132C of 2011-12; Amend and Recommit to Finance S1082A/A54A of 2013-14; S. 2985A of 2016/2017 Referred to Investigations and Government Operations S. 374 Referred to Senate Investigations and Government Operations
Fiscal implications
Loss of sales tax revenue.
Effective date
This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2019.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.