STATE OF NEW YORK ________________________________________________________________________ 9896 IN SENATE August 28, 2024 ___________ Introduced by Sen. ASHBY -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the tax law, in relation to establishing a hydroelectric power tax credit The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The tax law is amended by adding a new section 50 to read 2 as follows: 3 § 50. Hydroelectric power credit. (a) Allowance of credit. A taxpayer 4 subject to tax under article nine, nine-a, twenty-two or thirty-three of 5 this chapter shall be allowed a hydroelectric power credit against such 6 tax, for fifty percent of the cost of any licensing or relicensing fees 7 assessed by any state or federal agency. 8 (b) Cross-references. For application of the credit provided for in 9 this section, see the following provisions of this chapter: 10 (1) article 9: section 187-s; 11 (2) article 9-A: section 210-B, subdivision 61; 12 (3) article 22: section 606, subsections (i) and (bbb); 13 (4) article 33: section 1511, subdivision (ff). 14 § 2. The tax law is amended by adding a new section 187-s to read as 15 follows: 16 § 187-s. Hydroelectric power credit. 1. Allowance of credit. A taxpay- 17 er shall be allowed a credit, to be computed as provided in section 18 fifty of this chapter, against the taxes imposed by sections one hundred 19 eighty-three, one hundred eighty-four and former section one hundred 20 eighty-six of this article. Provided, however, that the amount of such 21 credit allowable against the tax imposed by section one hundred eighty- 22 four of this article shall be the excess of the amount of such credit 23 over the amount of any credit allowed by this section against the tax 24 imposed by section one hundred eighty-three of this article. 25 2. Carryover. In no event shall the credit under this section be 26 allowed in an amount which will reduce the tax payable to less than the 27 applicable minimum tax fixed by section one hundred eighty-three or 28 former section one hundred eighty-six of this article. If, however, the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD16105-01-4

S. 9896 2 1 amount of credit allowable under this section for any taxable year 2 reduces the tax to such amount, any amount of credit not deductible in 3 such taxable year may be carried over to the following year or years and 4 may be deducted from the taxpayer's tax for such year or years. 5 § 3. Section 210-B of the tax law is amended by adding a new subdivi- 6 sion 61 to read as follows: 7 61. Hydroelectric power credit. (a) Allowance of credit. A taxpayer 8 shall be allowed a credit, to be computed as provided in section fifty 9 of this chapter, against the tax imposed by this article. 10 (b) Carryover. The credit allowed under this subdivision for any taxa- 11 ble year shall not reduce the tax due for such year to less than the 12 amount prescribed in paragraph (d) of subdivision one of section two 13 hundred ten of this article. However, if the amount of credit allowable 14 under this subdivision for any taxable year reduces the tax to such 15 amount or if the taxpayer otherwise pays tax based on the fixed dollar 16 minimum amount, any amount of credit not deductible in such taxable year 17 may be carried over to the following year or years, and may be deducted 18 from the qualified employer's tax for such years. 19 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 20 of the tax law is amended by adding a new clause (lii) to read as 21 follows: 22 (lii) Hydroelectric power Amount of credit under 23 credit under subsection (bbb) subdivision sixty-one of 24 section two hundred ten-B, 25 or subdivision (ff) of section 26 fifteen hundred eleven 27 § 5. Section 606 of the tax law is amended by adding a new subsection 28 (bbb) to read as follows: 29 (bbb) Hydroelectric power credit. (1) Allowance of credit. A taxpayer 30 shall be allowed a credit, to be computed as provided in section fifty 31 of this chapter, against the tax imposed by this article. 32 (2) Carryover. The credit allowed under this subsection for any taxa- 33 ble year shall not reduce the tax due for such year to less than the 34 amount prescribed in paragraph (d) of subdivision one of section two 35 hundred ten of this chapter. However, if the amount of credit allowable 36 under this subsection for any taxable year reduces the tax to such 37 amount or if the taxpayer otherwise pays tax based on the fixed dollar 38 minimum amount, any amount of credit not deductible in such taxable year 39 may be carried over to the following year or years, and may be deducted 40 from the taxpayer's tax for such years. 41 § 6. Section 1511 of the tax law is amended by adding a new subdivi- 42 sion (ff) to read as follows: 43 (ff) Hydroelectric power credit. (1) Allowance of credit. A taxpayer 44 shall be allowed a credit, to be computed as provided in section fifty 45 of this chapter, against the tax imposed by this article. 46 (2) Carryover. The credit allowed under this subdivision for any taxa- 47 ble year shall not reduce the tax due for such year to less than the 48 minimum fixed by paragraph four of subdivision (a) of section fifteen 49 hundred two of this article or by section fifteen hundred two-a of this 50 article, whichever is applicable. However, if the amount of the credit 51 allowed under this subdivision for any taxable year reduces the taxpay- 52 er's tax to such amount, any amount of credit thus not deductible shall 53 be treated as an overpayment of tax to be credited in accordance with 54 the provisions of section one thousand eighty-six of this chapter.

S. 9896 3 1 Provided, however, the provisions of subsection (c) of section one thou- 2 sand eighty-eight of this chapter notwithstanding, no interest shall be 3 paid thereon. 4 § 7. This act shall take effect immediately.

Establishes a hydroelectric power tax credit

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