S1082-2013 Actions

• Apr 30, 2013: REPORTED AND COMMITTED TO FINANCE
• Jan 9, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S1082-2013 Meetings

S1082-2013 Votes

S1082-2013 Memo

BILL NUMBER:S1082

TITLE OF BILL:
An act
to amend the tax law, in relation to providing a tax credit to farmers
who purchase biodiesel fuel for the operation of their farm equipment

PURPOSE OR GENERAL IDEA OF BILL:
To create incentives for farmers to use homegrown biodiesel for
operation of their farm equipment rather than petro-gas.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1 and 2: Establishes a tax credit of $0.01 per percent of
biodiesel per gallon, not to exceed twenty cents per gallon purchased
by a taxpayer that is principally engaged in farming.

(b) - Defines Biodiesel and Qualified Biodiesel

(c) - Establishes the application of the credit.

Section 3: is the Effective Date

JUSTIFICATION:
Studies have shown that diesel fumes contain particulate matter which
can trigger asthma attacks and other respiratory ailments in children
and that levels of diesel fumes are up to four times greater inside a
bus than ambient levels. Diesel exhaust is classified as a probable
human carcinogen by many government authorities including the state
attorney general. In addition, dark particles from diesel fuel have
been found embedded in glacial ice contributing to rapid melting of
polar ice. By giving incentives to farmers to use biodiesel it
encourages responsible farming and allows farmers an economic
incentive to use such products.

PRIOR LEGISLATIVE HISTORY:
06/01/07 Referred to Ways and Means
01/09/08 Referred to Ways and Means
06/19/08 Held for Consideration in Ways and Means
05/06/10 Referred to Investigations and Government Operations
S2989C/A7132C of 2011-12; Amend and Recommit to Finance

FISCAL IMPLICATIONS:
Loss of sales tax revenue.

EFFECTIVE DATE:
This act shall take effect immediately.

S1082-2013 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         1082
 2013-2014 Regular Sessions
 I N  SENATE
 (PREFILED)
 January 9, 2013
 
 Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
 printed to be committed to the Committee on Investigations and Govern
 ment Operations
 

AN ACT to amend the tax law, in relation to providing a  tax  credit  to
 farmers  who  purchase  biodiesel fuel for the operation of their farm
 equipment
 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section  1. 

Section  210  of  the  tax law is amended by adding a new
 subdivision 46 to read as follows:

 46. CREDIT FOR BIODIESEL FUEL USED IN FARMING EQUIPMENT.   (A)  ALLOW
 ANCE  OF  CREDIT.  A  TAXPAYER THAT IS A BUSINESS PRINCIPALLY ENGAGED IN
 FARMING, AS  SUCH TERM IS DEFINED IN PARAGRAPH NINETEEN  OF  SUBDIVISION
 (B)  OF  SECTION  ELEVEN  HUNDRED ONE OF THIS CHAPTER SHALL BE ALLOWED A
 CREDIT AGAINST THE TAX IMPOSED BY THIS   ARTICLE  FOR  THE  PURCHASE  OF
 QUALIFIED  BIODIESEL FUEL TO BE USED IN FARMING EQUIPMENT IN THIS STATE.
 SUCH CREDIT SHALL BE $0.01 PER PERCENT OF BIODIESEL PER GALLON OF QUALI
 FIED BIODIESEL FUEL, NOT TO EXCEED TWENTY CENTS PER GALLON, PURCHASED BY
 SUCH TAXPAYER DURING THE TAXABLE YEAR AND USED IN FARMING EQUIPMENT.
 (B) FOR PURPOSES OF THIS SUBDIVISION, THE FOLLOWING DEFINITIONS  SHALL
 APPLY:

 (1)  "BIODIESEL"  SHALL MEAN A FUEL COMPRISED EXCLUSIVELY OF MONOALKYL
 ESTERS OF LONG CHAIN FATTY ACIDS DERIVED FROM VEGETABLE OILS  OR  ANIMAL
 FATS, DESIGNATED B100, WHICH MEETS THE SPECIFICATIONS OF AMERICAN SOCIE
 TY OF TESTING AND MATERIALS DESIGNATION D 6751.
 (2) "QUALIFIED BIODIESEL" SHALL MEAN A FUEL THAT IS A MIXTURE OF BIOD
 IESEL AND DIESEL MOTOR FUEL.
 (C)  APPLICATION  OF  CREDIT.    IN  NO  EVENT SHALL THE CREDIT HEREIN
 PROVIDED FOR BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE  TAX  PAYABLE
 TO  LESS THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD02276-01-3
 
       S. 1082                             2
 (D) OF SUBDIVISION ONE OF THIS  SECTION.  HOWEVER, IF THE AMOUNT OF  THE
 CREDIT  ALLOWED UNDER THIS SUBDIVISION 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 ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER, PROVIDED,
 HOWEVER, THAT NO INTEREST SHALL BE PAID ON SUCH REFUND,  NOTWITHSTANDING
 THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF
 THIS CHAPTER.
 

S  2.

Section 606 of the tax law is amended by adding a new subsection
 (vv) to read as follows:

 (VV) CREDIT FOR BIODIESEL FUEL USED IN FARMING EQUIPMENT.  (1)  ALLOW
 ANCE  OF  CREDIT. A TAXPAYER WHOSE FEDERAL GROSS INCOME FROM FARMING FOR
 THE TAXABLE YEAR IS AT LEAST TWO-THIRDS OF EXCESS FEDERAL  GROSS  INCOME
 SHALL  BE  ALLOWED  A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR
 THE PURCHASE OF QUALIFIED BIODIESEL FUEL TO BE USED IN FARMING EQUIPMENT
 IN THIS STATE.  SUCH CREDIT SHALL BE $0.01 PER PERCENT OF BIODIESEL  PER
 GALLON  OF  QUALIFIED  BIODIESEL  FUEL,  NOT  TO EXCEED TWENTY CENTS PER
 GALLON, PURCHASED BY SUCH TAXPAYER DURING THE TAXABLE YEAR AND  USED  IN
 FARMING EQUIPMENT.
 (2)  DEFINITIONS. FOR PURPOSES OF THIS SUBSECTION, THE FOLLOWING DEFI
 NITIONS SHALL APPLY:

 (A) "EXCESS FEDERAL GROSS INCOME" MEANS THE AMOUNT  OF  FEDERAL  GROSS
 INCOME  FROM ALL SOURCES FOR THE TAXABLE YEAR REDUCED BY THE SUM (NOT TO
 EXCEED THIRTY THOUSAND DOLLARS) OF THOSE ITEMS INCLUDED IN FEDERAL GROSS
 INCOME WHICH CONSIST  OF  (I)  EARNED  INCOME,  (II)  PENSION  PAYMENTS,
 INCLUDING  SOCIAL SECURITY PAYMENTS, (III) INTEREST, AND (IV) DIVIDENDS.
 FOR PURPOSES OF THIS PARAGRAPH, THE  TERM  "EARNED  INCOME"  SHALL  MEAN
 WAGES,  SALARIES,  TIPS AND OTHER EMPLOYEE COMPENSATION, AND THOSE ITEMS
 OF GROSS INCOME WHICH ARE INCLUDIBLE IN THE COMPUTATION OF NET  EARNINGS
 FROM  SELF-EMPLOYMENT. FOR THE PURPOSES OF THIS PARAGRAPH, PAYMENTS FROM
 THE STATE'S FARMLAND PROTECTION PROGRAM, ADMINISTERED BY THE  DEPARTMENT
 OF  AGRICULTURE  AND  MARKETS, SHALL BE INCLUDED AS FEDERAL GROSS INCOME
 FROM FARMING.
 (B) "BIODIESEL" MEANS A FUEL COMPRISED EXCLUSIVELY OF MONOALKYL ESTERS
 OF LONG CHAIN FATTY ACIDS DERIVED FROM VEGETABLE OILS  OR  ANIMAL  FATS,
 DESIGNATED  B100,  WHICH MEETS THE SPECIFICATIONS OF AMERICAN SOCIETY OF
 TESTING AND MATERIALS DESIGNATION D 6751.
 (C) "QUALIFIED BIODIESEL" MEANS A FUEL THAT IS A MIXTURE OF  BIODIESEL
 AND DIESEL MOTOR FUEL.
 (3)  APPLICATION  OF CREDIT. 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.
 

S 3. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2014.

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