What's happening
This bill creates a tax credit and assistance program for replacing residential fuel oil storage tanks in New York with safer, approved models.
Why it matters
Targets environmental and safety risks. By incentivizing the replacement of outdated or unprotected residential fuel oil tanks, the bill aims to reduce the risk of leaks and spills, which can contaminate soil and groundwater, potentially causing harm to both the environment and public health.
Provides financial relief for homeowners. The tax credit (up to $500) and assistance program could make it significantly more affordable for homeowners—especially those in older homes—to upgrade to safer, approved fuel oil storage tanks, easing the financial burden of compliance with modern safety standards.
Promotes use of higher safety standards. Only tanks meeting specific Underwriters Laboratories (U.L.) standards are eligible for the credit or assistance, encouraging the adoption of tanks with enhanced leak protection, double-wall construction, and secondary containment, rather than basic or outdated models.
Expands access for low-income households. By directing the state’s HEAP (Heating Energy Assistance Program) to help eligible households with tank replacement costs, the bill ensures that vulnerable populations can participate in environmental safety upgrades, not just those who can afford upfront expenses.
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Who cares
Headline styles
Fuel Tank Replacement Credit
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to budget and revenue
- Referred to budget and revenue
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.
Fuel Tank Tax Credit
In Assembly Committee · Ways And Means · Sponsor Fred Thiele
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
S. 3729 A. 5522
2019-2020 Regular Sessions
SENATE - ASSEMBLY
February 13, 2019
IN SENATE -- Introduced by Sens. LAVALLE, O'MARA -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue
IN ASSEMBLY -- Introduced by M. of A. THIELE -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to establishing a residential fuel oil storage tank credit and to direct the office of temporary and disability assistance to establish a program to assist eligible households in the replacement of residential fuel oil storage tanks
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 606 of the tax law is amended by adding a new subsection (p-1) to read as follows:
(p-1) Residential fuel oil storage tank credit. (1) Allowance of credit. A taxpayer shall be allowed a credit, to be computed as hereinafter provided, against the tax imposed by this article for the removal or permanent closure and installation of a below-ground or above-ground residential fuel oil storage tank used to provide heating fuel for single family, two family, three family and four family residences located in this state.
(2) Amount of credit. The amount of the credit shall be equal to the costs of removal or permanent closure of an existing below-ground or above-ground residential fuel oil tank and the purchase and installation costs of a new below-ground or above-ground residential fuel oil storage tank which is installed during the taxable year where such new tank is used in place of such formerly used below-ground or above-ground residential fuel oil tank which was removed or permanently closed during the taxable year, not to exceed five hundred dollars.
(3) Limitation. A credit allowed under this subsection may be allowed only once with respect to a particular residence.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03299-01-9
S. 3729 2 A. 5522
(4) Carryover. If the amount of the credit allowable under this subsection exceeds the taxpayer's tax for any taxable year, the excess may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years.
(5) To qualify for the credit established by this subsection, a replacement fuel oil storage tank must be installed and shall be of a design approved by Underwriters Laboratories (U.L.), as follows:
(A) U.L. 80: A steel tank with a polyurethane exterior coating;
(B) U.L. 80: A steel tank with a double-bottom leak protection system, with or without a polyurethane exterior coating;
(C) U.L. 80 steel tank, without a polyurethane exterior coating, provided that such tank is located inside a sealed, leak-proof secondary containment structure listed to U.L. 2258 (non-metallic tub for oil tanks), wherein such structure has a volumetric capacity of 110% of the inside tank;
(D) U.L. 2558: A double wall tank consisting of an interior polyethylene tank placed inside a secondary liquid-tight metallic tank;
(E) U.L. 2558: A single wall or double wall fiberglass tank; or
(F) U.L. 58 and U.L. 1746-Part 1: A Steel Tank Institute P-3 tank with cathodic protection. A standard unprotected single wall oil storage tank listed to U.L. 80 is not permitted as a replacement tank and will not be eligible for the tax credit provided herein.
§ 2. The office of temporary and disability assistance shall develop a program utilizing the heating energy assistance program (HEAP) to assist eligible households to remove/permanently close and replace existing fuel oil storage tanks and to promulgate such regulations and apply for such permissions and waivers from the United States government as may be necessary to do so. To qualify for assistance, a replacement fuel oil storage tank must be installed and shall be of a design as specified in paragraph (5) of subsection (p-1) of section 606 of the tax law.
§ 3. This act shall take effect immediately.
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 establish- ing a residential fuel oil storage tank credit and to direct the office of temporary and disability assistance to establish a program to assist eligible households in the replacement of residential fuel oil storage tanks
Purpose
To re-establish a tax credit for the removal or permanent closure and replacement of residential fuel oil tanks through the establishment of the Residential Fuel Oil Storage Tank Credit.
Summary of provisions
This bill amends section 606 of the tax law by adding a new section (p-1) which would provide for a tax credit of up to $500 of the cost of removing or permanently closing existing oil storage tanks and install- ing new oil storage tanks at one, two, three or four family residences. The credit would be allowed once per residence and could be carried over in future tax years in the event that the taxpayer does not use all of the credit in the first year. The replacement tanks must be Underwriters Laboratories (U.L.) approved and be either double hulled or single hulled inside a sealed leak proof (U.L) approved secondary containment structure. The bill also directs that the Office of Temporary and Disa- bility Assistance would be required to provide guidance and assistance under the heating energy assistance program (HEAP).
Justification
A ruptured or leaking residential fuel tank can constitute one of the most destructive accidents for a homeowner and the surrounding communi- ty. The ecological damage and cost of cleanup can be catastrophic. Prior to 2003, a tax credit similar to the one proposed in this bill was offered and well received. This legislation will extend again a finan- cial incentive to homeowners to take that step to upgrade to safe fuel oil storage tanks and avoid an environmental and personal catastrophe.
Legislative history
2018 S.7864/A.10033
Fiscal implications
To be determined.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.