What's happening
This bill establishes a refundable tax credit for individuals and small businesses in rural New York who contribute to new gas pipeline construction in unserved areas.
Why it matters
Targets areas with little or no existing gas infrastructure, aiming to reduce energy disparities between rural and urban communities. This could help attract and retain residents or businesses in rural regions that currently lack reliable gas service, potentially supporting local economies and quality of life.
Makes energy infrastructure expansion more financially feasible for individuals and small businesses. By offering a refundable credit for contributions toward pipeline construction, the bill lowers the out-of-pocket burden for those who would otherwise be unable or unwilling to pay for expensive connections.
Sets clear definitions and formulas to determine eligibility, cost-sharing, and the extent of credit. This adds predictability and transparency for both customers and utility providers, reducing confusion about who qualifies and how much support they’ll receive.
Could influence the pace and pattern of rural energy development in New York. By incentivizing new gas pipelines, the bill may accelerate fossil fuel infrastructure in certain areas, which could have long-term implications for energy policy, local environmental impacts, and New York’s climate goals.
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Headline styles
Tax Credit for Rural Gas
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to energy and telecommunications
- Referred to energy and telecommunications
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1178
2025-2026 Regular Sessions
IN SENATE
January 8, 2025
Introduced by Sen. MATTERA -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications
AN ACT to amend the public service law and the tax law, in relation to enacting the credit for rural energy infrastructure act of 2025
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Short title. This act shall be known and may be cited as the "credit for rural energy infrastructure act of 2025".
§ 2. Section 5 of the public service law is amended by adding a new subdivision 7 to read as follows:
7. The commission, in consultation with New York independent system operator, is hereby authorized and directed to promulgate rules and regulations necessary for verifying an unserved area for the purposes of subdivision sixty-one of section two hundred ten-b and subsection (qqq) of section six hundred six of the tax law, using gas service mapping data at the time a project is proposed.
§ 3. Section 210-B of the tax law is amended by adding a new subdivision 61 to read as follows:
61. Credit for rural energy infrastructure deployment. (a) Allowance of credit. A qualified taxpayer shall be allowed a credit against the tax imposed by this article equal to any qualified customer contribution in aid of construction resulting from new gas pipeline construction to deliver gas service to the individual's residence or place of business located in an unserved area. The credit allowed by this subdivision shall be claimed annually over a five-year period equal to one-fifth of the credit amount. If the credit allowed under this subdivision is greater than the tax due in any taxable year, the amount by which such credit exceeds such tax due is treated as an overpayment of tax to be refunded in accordance with the provisions of section one thousand eighty-six of this chapter.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03680-01-5
(b) For purposes of this subdivision, the following definitions shall apply:
(i) "Qualified construction expenses" equal the total cost of construction of new networks in the proposed unserved area, as certified by the gas service provider, but not to exceed a reasonable cost based upon the average cost per mile of gas pipeline construction as determined by the public service commission and gas service providers.
(ii) "Qualified customer contribution in aid of construction" is determined in accordance with the following formula: (QCE/TC) - (ACM/35) = QC, where QCE equals the qualified construction expenses; ACM equals the average cost of construction per mile in the proposed unserved area, as certified by the gas service provider, but not to exceed a reasonable cost based upon the average cost per mile of gas pipeline construction as determined by the public service commission and gas service providers; TC equals the number of residents and small business customers in the proposed unserved area making a qualified customer contribution in aid to construction and contracting for services over the pipeline; and QC equals the qualified customer contribution in aid of construction.
(iii) "Required provider contribution in aid to construction" shall equal the qualified construction expenses, less the sum of all the qualified customer contributions in aid to construction in the proposed unserved area.
(iv) "Unserved area" means an area composed of one or more contiguous census blocks where at least ninety percent of households lack access to gas service.
(v) "Qualified taxpayer" means a taxpayer which is a small business corporation as defined in paragraph three of subsection (c) of section twelve hundred forty-four of the internal revenue code, notwithstanding the second sentence of subparagraph (A) thereof, as of the last day of the taxable year.
§ 4. Section 606 of the tax law is amended by adding a new subsection (qqq) to read as follows:
(qqq) Credit for rural energy infrastructure. (1) Allowance of credit. A qualified taxpayer shall be allowed a credit against the tax imposed by this article equal to any qualified customer contribution in aid of construction resulting from new network construction to deliver gas service to the individual's residence or place of business located in an unserved area. The credit allowed by this subsection shall be claimed annually over a five-year period equal to one-fifth of the credit amount. If the credit allowed under this subsection is greater than the tax due in any taxable year, the amount by which such credit exceeds such tax due is treated as an overpayment of tax to be refunded in accordance with the provisions of section one thousand eighty-six of this chapter.
(2) For purposes of this subsection, the following definitions shall apply:
(A) "Qualified construction expenses" equal the total cost of construction of new pipelines in the proposed unserved area, as certified by the gas service provider, but not to exceed a reasonable cost based upon the average cost per mile of gas pipeline construction as determined by the public service commission and gas service providers.
(B) "Qualified customer contribution in aid of construction" is determined in accordance with the following formula: (QCE/TC) - (ACM/35) = QC, where QCE equals the qualified construction expenses; ACM equals the average cost of construction per mile in the proposed unserved area, as certified by gas service provider, but not to exceed a reasonable cost based upon the average cost per mile of gas pipeline construction as determined by the public service commission gas service providers; TC equals the number of residents and small business customers in the proposed unserved area making a qualified customer contribution in aid to construction and contracting for services over the network; and QC equals the qualified customer contribution in aid of construction.
(C) "Required provider contribution in aid to construction" shall equal the qualified construction expenses, less the sum of all the qualified customer contributions in aid to construction in the proposed unserved area.
(D)"Unserved area" means an area composed of one or more contiguous census blocks where at least ninety percent of households lack access to gas service.
(E)"Qualified taxpayer" means any individual with an adjusted gross income of two hundred fifty thousand dollars or less.
§ 5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (lii) to read as follows:
(lii) Credit for rural Amount of credit under subdivision energy infrastructure sixty-one of section two subsection (qqq) hundred ten-B
§ 6. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2026.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the public service law and the tax law, in relation to enacting the credit for rural energy infrastructure act of 2025
Purpose
This bill would allow taxpayers to receive credit for investments made in gas infrastructure in underserved areas
Summary of provisions
Section 1: This act shall be known and may be cited as the "credit for rural energy infrastructure act of 2025".
Section 2: Section 5 of the public service law is amended by adding a new subdivision 7 to read as follows:
Section 3: Section 210-B of the tax law is amended by adding a new subdivision 61 to read as follows:
Section 4:Section 606 of the tax law is amended by adding a new subsection 28 (qqq) to read as follows:
Section 5: Subparagraph (B) of paragraph 1 of subsection (i) of section 606 13 of the tax law is amended by adding a new clause (iii) to read as 14 follows:
Section 6: Effective Date
Justification
Many New Yorkers live in areas where natural gas service is unavailable, forcing them to rely on heating fuels that produce greater CO2 emissions than natural gas. This bill would allow taxpayers to receive credit for investments made in gas infrastructure in underserved areas, enabling them to build out more infrastructure and provide cleaner energy service across the state.
Legislative history
2024 - S9903 Referred to Rules
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately and shall apply to taxable 19 years beginning on or after January 1, 2026.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.