Bill S1114-2011

Relates to restoring the fuel cell tax credit

Relates to restoring the fuel cell tax credit.

Details

Actions

  • Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 5, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

 BILL NUMBER:  S1114

TITLE OF BILL : An act to amend the tax law, in relation to restoring the fuel cell tax credit

PURPOSE OR GENERAL IDEA OF BILL : Restores a previously existing tax credit for certain qualified fuel cell electric generating expenditures.

SUMMARY OF SPECIFIC PROVISIONS : Section 1 amends subdivision 1 of section 187-n of the tax law, to restore a business tax credit of up to $1,500 per unit for businesses who purchase qualified fuel cell electric generating equipment.

Section 2 amends paragraph (a) of subdivision 37 of section 210 of the tax law, to restore the same credit for the corporate franchise tax.

Section 3 amends paragraph 1 of subsection (g-2) of section 606 of the tax law to restore a credit for purposes of personal income tax.

Section 4 amends paragraph 1 of subsection (t) of section 1456 of the tax law to restore the fuel cell franchise tax credit for banking institutions.

Section 5 amends paragraph 1 of subdivision x of section 1511 of the tax law to restore the credit for purposes of insurance corporations.

Section 6 amends subdivision (a) of section 20 of the tax law to restore the credit provided for by cross-reference in subdivision (d) of such section.

Section 7 amends subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law to make conforming changes.

Section 8 provides that the bill shall apply to tax years beginning after January 1, 2009.

JUSTIFICATION : This bill restores a fuel cell technology tax credit in effect since 2005 which was eliminated in the 2009-2010 budget process. The credit was originally designed to encourage the use of alternate, more energy efficient and environmentally friendly fuel cell based energy for businesses. Since the introduction of the credit, fuel cell technology has grown into a viable source of back-up power source for cell towers and a variety of electric generating uses.

In its 2003 report to Congress, the federal Department of Energy (DOE) stated the following about fuel cell technology:

* Fuel cell technologies offer unique opportunities for significant reductions in both energy use and emissions for transportation and stationary power applications. * Efficiency improvements over conventional technologies that are inherent to fuel cells could lead to considerable energy savings and reduction in greenhouse gas emissions. * The use of hydrogen in fuel cells, produced from diverse, domestic resources, could result in reduced demand for foreign oil in transportation applications. * Widespread use of fuel cell technology could make a significant improvement in air quality in the United States. (see, DOE Report, ESECS EE-1973.)



Over the four years the fuel cell tax credit has been in existence, New York has grown its use of fuel cells, and the State's domestic producers of fuel cells have diversified their offerings.

Restoration of the fuel cell tax credit will continue New York's public policy of promoting increased use of greenhouse gas reducing power technologies. Increased usage of fuel cell technology will enhance and diversify New York's available power sources, and decrease the use of non-renewable resources and our reliance on traditional forms of energy.

PRIOR LEGISLATIVE HISTORY : S.5563/A.8381 (2010) - Reported and Committed to Finance S.57B/A.157B (2009) - Signed as Chapter 57 of the Laws of 2009 S.2994B/A.5881B (2005) - Signed a Chapter 446 of the Laws of 2005

FISCAL IMPLICATIONS : Initial fiscal impact will be minimal.

EFFECTIVE DATE : This act shall take effect immediately, and shall be deemed to have been in effect on and after January 1, 2011.

Text

STATE OF NEW YORK ________________________________________________________________________ 1114 2011-2012 Regular Sessions IN SENATE January 5, 2011 ___________
Introduced by Sen. PARKER -- 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 restoring the fuel cell tax credit THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 1 of section 187-n of the tax law, as amended by section 1 of part C-1 of chapter 57 of the laws of 2009, is amended to read as follows: (1) Allowance of credit. [For taxable years beginning before January first, two thousand nine, a] A taxpayer whose business is not substan- tially engaged in the commercial generation, distribution, transmission, or servicing of energy or energy products shall be allowed a credit against the taxes imposed by sections one hundred eighty-three, one hundred eighty-four and one hundred eighty-five of this article, equal to its qualified fuel cell electric generating equipment expenditures. Provided, however, that the amount of such credit allowable 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 section against the tax imposed by section one hundred eighty-three of this article. This credit shall not exceed one thousand five hundred dollars per generating unit with respect to any taxable year. The credit provided for herein shall be allowed with respect to the taxable year in which the fuel cell electric generating equipment is placed in service. S 2. Paragraph (a) of subdivision 37 of section 210 of the tax law, as amended by section 2 of part C-1 of chapter 57 of the laws of 2009, is amended to read as follows: (a) Allowance of credit. [For taxable years beginning before January first, two thousand nine, a] A taxpayer shall be allowed a credit
against the tax imposed by this article, equal to its qualified fuel cell electric generating equipment expenditures. This credit shall not exceed one thousand five hundred dollars per generating unit with respect to any taxable year. The credit provided for herein shall be allowed with respect to the taxable year in which the fuel cell electric generating equipment is placed in service. S 3. Paragraph 1 of subsection (g-2) of section 606 of the tax law, as amended by section 3 of part C-1 of chapter 57 of the laws of 2009, is amended to read as follows: (1) General. [For taxable years beginning before January first, two thousand nine, an] AN individual taxpayer shall be allowed a credit against the tax imposed by this article equal to twenty percent of qual- ified fuel cell electric generating equipment expenditures. This credit shall not exceed one thousand five hundred dollars per generating unit with respect to any taxable year. The credit provided for herein shall be allowed with respect to the taxable year in which the fuel cell elec- tric generating equipment is placed in service. S 4. Paragraph 1 of subsection (t) of section 1456 of the tax law, as amended by section 4 of part C-1 of chapter 57 of the laws of 2009, is amended to read as follows: (1) Allowance of credit. [For taxable years beginning before January first, two thousand nine, a] A taxpayer shall be allowed a credit against the tax imposed by this article, equal to its qualified fuel cell electric generating equipment expenditures. This credit shall not exceed one thousand five hundred dollars per generating unit with respect to any taxable year. The credit provided for in this subsection shall be allowed with respect to the taxable year in which the fuel cell electric generating equipment is placed in service. S 5. Paragraph 1 of subdivision (x) of section 1511 of the tax law, as amended by section 5 of part C-1 of chapter 57 of the laws of 2009, is amended to read as follows: (1) Allowance of credit. [For taxable years beginning before January first, two thousand nine, a] A taxpayer shall be allowed a credit against the tax imposed by this article, equal to its qualified fuel cell electric generating equipment expenditures. This credit shall not exceed one thousand five hundred dollars per generating unit with respect to any taxable year. The credit provided for in this subdivision shall be allowed with respect to the taxable year in which the fuel cell electric generating equipment is placed in service. S 6. Subdivision (a) of section 20 of the tax law, as amended by section 6 of part C-1 of chapter 57 of the laws of 2009, is amended to read as follows: (a) Allowance of credit. [For taxable years beginning before January first, two thousand nine, a] A taxpayer subject to tax under article nine, nine-A, twenty-two, thirty-two or thirty-three of this chapter shall be allowed a credit against such tax, pursuant to the provisions referenced in subdivision (d) of this section. The credit shall be allowed where a taxpayer has made a certified contribution of at least ten million dollars to a qualified transportation improvement project in a prior taxable year. The credit shall be equal to six percent of the taxpayer's increased qualified business facility payroll for the taxable year. The aggregate of all credit amounts allowed to the taxpayer pursu- ant to this section with respect to a certified contribution shall not exceed the amount of such certified contribution. S 7. Clauses (xiv) and (xxv) of subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law, as amended by section 7 of
part C-1 of chapter 57 of the laws of 2009, are amended to read as follows: (xiv) Credit for transportation [For taxable years beginning improvement contributions under before January first, two thousand subsection (z) nine, amount] AMOUNT of credit under subdivision thirty-two of section two hundred ten or subsection (n) of section fourteen hundred fifty-six (xxv) Credit for qualified fuel [For taxable years beginning before cell electric generating January first, two thousand nine, equipment expenditures amount] AMOUNT of credit under subsection (g-2) under subdivision thirty-seven of section two hundred ten or subsection (t) of section fourteen hundred fifty-six S 8. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after January 1, 2011.

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