What's happening
This bill creates a one-time tax credit for New York farmers who purchase equipment to convert farm waste into methane for commercial use.
Why it matters
Encourages farm sustainability and innovation. by directly offsetting the cost of anaerobic digesters and related equipment, making it more financially feasible for farmers to invest in waste-to-energy technology.
Promotes renewable energy and greenhouse gas reduction. , since converting farm waste to methane can cut down on landfill and manure emissions, supporting both state climate goals and cleaner local air.
Provides immediate financial relief. to farmers through a refundable, one-time tax credit (equal to the full value of the equipment), which means even those with low or no tax liability can benefit via a refund rather than just a deduction.
Could stimulate local rural economies. by increasing demand for advanced agricultural and energy equipment, potentially creating jobs in manufacturing, installation, and maintenance sectors tied to this technology.
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Who cares
Headline styles
Tax Credit for Farm Digesters
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to budget and revenue
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7103
IN SENATE (Prefiled)
January 8, 2020
Introduced by Sen. JORDAN -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law, in relation to providing a tax credit for the purchase of on-farm anaerobic digesters or other farm-related equipment that is used in the process of turning farm waste into methane for commercial use
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The tax law is amended by adding two new sections 28-a and 187-q to read as follows:
§ 28-a. Methane production equipment credit. (a) General. A taxpayer subject to tax under article nine, nine-A or twenty-two of this chapter shall be allowed a one-time credit against such tax pursuant to the provisions referenced in subdivision (b) of this section. The credit (or pro rata share of the credit in the case of a partnership) for the purchase and implementation at a farm located in New York state of on-farm anaerobic digesters or other farm-related equipment that is used in the process of turning farm waste into methane for use by the taxpayer or other commercial use shall be the full-value of the equipment at the time of purchase. The tax credit allowed pursuant to this section shall apply to taxable years beginning on and after January first, two thousand twenty-one.
(b) Cross-references. For application of the credit provided for in this section, see the following provisions of this chapter:
(1) Article 9: Section 187-q.
(2) Article 9-A: Section 210-B, subdivision 28.
(3) Article 22: Section 606, subsections (i) and (kkk).
§ 187-q. Methane production equipment credit. A taxpayer shall be allowed a credit to be computed as provided in section twenty-eight-a of this chapter against the tax imposed by this article. Provided, however, that the amount of such credit allowed against the tax imposed by section one hundred eighty-four of this article shall be the excess of the amount of such credit over the amount of any credit allowed by this
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14369-02-0
S. 7103 2
section against the tax imposed by section one hundred eighty-three of this article. In no event shall the credit under this section be allowed in an amount which will reduce the tax payable to less than the applicable minimum tax fixed by section one hundred eighty-three of this article. If, however, the amount of the credit allowed under this section for any taxable year reduces the tax to such amount, 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 chapter. Provided, however, the provisions of subsection (c) of section one thousand eighty-eight of this chapter notwithstanding, no interest shall be paid thereon. The tax credit allowed pursuant to this section shall apply to taxable years beginning on and after January first, two thousand twenty-one.
§ 2. Section 210-B of the tax law is amended by adding a new subdivision 28 to read as follows:
28. Methane production equipment credit. A taxpayer shall be allowed a credit, to be computed as provided in section twenty-eight-a of this chapter against the tax imposed by this article. The credit allowed under this subdivision for any taxable year shall not reduce the tax due for such year to less than the fixed dollar minimum amount prescribed in paragraph (d) of subdivision one of section two hundred ten of this article. However, if the amount of credit allowed under this subdivision for any taxable year reduces the tax to such amount or if the taxpayer otherwise pays tax based on the fixed dollar minimum amount, any amount of credit thus not deductible in such taxable year 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, the provisions of subsection (c) of section one thousand eighty-eight of this chapter notwithstanding, no interest shall be paid thereon. The tax credit allowed pursuant to this section shall apply to taxable years beginning on and after January first, two thousand twenty-one.
§ 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xlvi) to read as follows:
(xlvi) Methane production equipment Amount of credit under credit under subsection (kkk) subdivision twenty-eight of
section two hundred ten-B
§ 4. Section 606 of the tax law is amended by adding a new subsection (kkk) to read as follows:
(kkk) Methane production equipment credit. A taxpayer shall be allowed a credit to be computed as provided in section twenty-eight-a of this chapter against the tax imposed by this article. 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. The tax credit allowed pursuant to this section shall apply to taxable years beginning on and after January first, two thousand twenty-one.
§ 5. This act shall take effect immediately and shall apply to tax years commencing on and after January 1, 2021. Effective immediately the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such date.
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 for the purchase of on-farm anaerobic digesters or other farm-related equip- ment that is used in the process of turning farm waste into methane for commercial use
Summary of provisions
Section 1: Amends the tax law to add two new sections 28-1 and 187-q, to allow a claim of a one-time tax credit for the purchase and implementa- tion at a farm in New York State for an on-farm anaerobic digester or other farm-related equipment that is used in the process of turning farm waste into methane for use by the taxpayer or other commercial use.
Section 2: Amends section 210-B of the tax law to add subdivision 28, to allow a tax credit for methane production to be computed against the tax liability imposed under current tax law.
Section 3: Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xlv) to include references to this new credit.
Section 4: Section 606 of the tax law is amended by adding a new subsection (kkk) to permit the methane production equipment credit. If the tax credit exceeds the taxpayer's tax liability for the tax year, the excess shall be treated as an overpayment of tax to be credited.or refunded in the taxable years beginning on and after January first, two thousand twenty-one.
Section 5: Effective date.
Justification
New York's agricultural industry is a vital part of the state's economic engine and is an important part of the fabric of many communities. However, this industry must be dynamic when looking to innovate and seek new markets and techniques for their products. One such innovation involves using anaerobic digesters to not only benefit the environment but also increase the supply of a renewable energy source. The process of converting manure to methane gas is currently being used by many dairy farms. The energy produced can be used to power the farm oper- ations, which can help reduce their overall energy costs. Excess power can also be sold to the power grid. This win-win program has received funding in the form of grants; however, in an effort to encourage the continued use of this technology, a reliable economic incentive in the form of a tax credit is necessary to provide for continued and expanded use by farmers.
Legislative history
New bill.
Effective date
This act shall take effect immediately and shall apply to tax years commencing on and after January 1, 2021.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.