What's happening
This bill creates a tax credit for New York residents covering 30% of the cost of qualified densified biomass fuel used for home heating.
Why it matters
Encourages cleaner home heating. By subsidizing the use of densified biomass fuels (like wood pellets), the bill incentivizes residents to choose a renewable energy source over fossil fuels, potentially reducing greenhouse gas emissions and reliance on oil or gas.
Makes cleaner heating more affordable. The 30% tax credit directly lowers the cost barrier for households that might otherwise find switching to biomass unaffordable, increasing energy equity for lower- and middle-income families.
Supports local and domestic industries. Only biomass fuel manufactured in the United States qualifies, which could stimulate demand for regional biomass producers, benefiting New York’s agricultural and forestry sectors.
Refundable credit expands access. If the credit exceeds the taxpayer’s liability, the excess is refunded, meaning even those with low tax burdens (such as retirees or low-income residents) can fully benefit from the incentive.
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Who cares
Resident property owners
The bill would provide a refundable tax credit covering 30% of qualifying U.S.-made densified biomass fuel costs for heating their New York residence or its water.
U.S. wood pellet and other densified biomass fuel manufacturers
The credit would apply only to domestically manufactured fuel made from woody or agricultural feedstocks, including wood pellets.
New York tax administrators
They would administer the credit during its five-year lifespan and credit or refund amounts exceeding a taxpayer’s tax liability, without interest.
Headline styles
Tax Credit for Biomass Fuel
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to budget and revenue
- Referred to budget and revenue
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
729
2025-2026 Regular Sessions
IN SENATE (Prefiled)
January 8, 2025
Introduced by Sen. GALLIVAN -- 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 a portion of the cost of qualified densified biomass fuel expenditures; and providing for the repeal of such provisions upon expiration thereof
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 (bbb) to read as follows:
(bbb) Credit for qualified densified biomass fuel expenditures. (1) Any resident owner of real property as defined in section one hundred two of the real property tax law shall be allowed a credit against the tax imposed under this article in an amount equal to thirty percent of qualified densified biomass fuel expenditures.
(2) For purposes of this subsection, the following definitions shall apply:
(a) "Qualified densified biomass fuel expenditures" shall mean expenditures for the cost of densified biomass fuel, manufactured in the United States of America, and used to heat a dwelling unit located in the state and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit.
(b) "Densified biomass fuel" shall mean a solid fuel derived by the mechanical densification and refining of biomass sourced from woody or agricultural feedstocks. Such term shall include wood pellets.
(3) 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.
§ 2. This act shall take effect immediately and shall expire and be deemed repealed five years after such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02842-01-5
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 a portion of the cost of qualified densified biomass fuel expenditures; and providing for the repeal of such provisions upon expiration thereof
Purpose
This bill creates a tax credit for the purchase of biomass fuel for residential use, typically wood pellets for use in a wood pellet boiler.
Summary of provisions
Section 1. Amends the tax law to add a new subsection that permits a resident owner of real property to claim a tax credit in an amount equal to thirty percent of qualified biomass fuel expenditures; defines "qual- ified biomass fuel expenditures" and "biomass fuel" accordingly.
Section 2. Sets forth the effective date and expiration of the aforemen- tioned tax credit.
Justification
Wood-fueled heating systems, also called biomass systems, burn wood pellets, chips or logs to provide warmth in a single room or to power central heating and hot water boilers. Heating a home with a wood pellet boiler has a number of advantages over heating with traditional fossil fuels. Wood pellets cost as much as 60% less than traditional heating fuel sources, and are a sustainable, renewable, and carbon-neutral fuel source. Wood pellets are produced in a number of locations throughout North America, with multiple producers located within New York State.
Almost any home can be converted to utilize a wood pellet boiler, either as a stand-alone heat source or as a primary heat source in conjunction with a secondary backup boiler. NYSERDA currently offers a number of incentives for residential homeowners to install wood pellet boilers to heat their homes and convert from more traditional electric and/or gas heat. However, such incentives are not applicable for the purchase of fuel to use in these boilers once installed. This bill would create a tax credit for resident owners of real property under the tax law for fuel expenditures, incentivizing New Yorkers to install and use biomass fuel to heat their homes, which in turn could continue to drive the state toward record uses of renewable energy.
Legislative history
2023-24: S.192/A.1458 Referred to Budget and Revenue/Referred to Ways and Means
2021-22: S.1699/A.497 Referred to Investigations and Government Operations/Referred to Ways and Means
2019-20: S.830/A.954 Referred to Investigations and Government Operations/Referred to Ways and Means
2017-18: S.5439B/A.8047A Referred to Investigations and Government Operations/Referred to Ways and Means
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately and shall expire and be deemed repealed five years after such effective date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.