This bill has been amended

Bill S1208-2013

Requires alternate generated power capacity for motor fuel dispensing facilities

Requires that each motor fuel terminal facility and each wholesaler which sells motor fuel in the state shall be capable of operating its distribution loading racks using alternate generated power source for a minimum of seventy-two hours; establishes a tax credit for alternate generated storage.

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  • Jan 9, 2013: REFERRED TO VETERANS, HOMELAND SECURITY AND MILITARY AFFAIRS

Memo

BILL NUMBER:S1208

TITLE OF BILL: An act to amend the executive law, the general business law and the tax law, in relation to alternate generated power capacity; and providing for the repeal of certain provisions upon expiration thereof

PURPOSE: The purpose of this bill is to require certain service stations and fuel terminal and wholesalers to purchase and install an alternate generated power source to be used during power outages.

SUMMARY OF PROVISIONS:

Section 1. This section requires Commission of Disaster Preparedness to designate motor fuel retail station to be required to install an alternate generated power source. To determine which retail motor fuel stations must install generators the Commission must look at certain criteria which includes, locations near major vehicular transportation routes or designated evaluation routes, the locations of the facilities that are away from any body of water such as wetlands, and locations near transportation hubs.

Section 2. Requires all fuel terminals, wholesalers and certain motor fuel retailers to purchase and install by September 1, 2014 an alternate generated power source which will enable them to operate their loading racks, fuel pumps, dispensing equipment, life safety systems, and payment acceptance equipment within 24 hrs of a major disaster that causes the facility to lose electrical power. The bill requires all motor fuel terminal facilities and wholesalers to purchase and install an alternate generated power source. The bill also requires all newly constructed or substantially renovated motor fuel retail outlet to install this power source as well. These facilities will be required to have an electrical contractor install a transfer switch as well as maintain documentation attesting to the periodic testing and operational capacity of the system.

Section 3. Tax Credit: This section will provide a tax credit for the purchase and installation of an alternate generated power source.

Facilities that are required to purchase and install an alternate power source under section one of the bill will be allowed a tax credit of up to 50% of the cost of installation and purchase. If a facility is not required to purchase and install the generator than the tax credit will be 50% of the cost to purchase and install the power source but cannot exceed $2,500.

If an alternate generated power source for which the facility received a tax credit for is returned, sold, or removed from service within one year from the date that the power source was installed, then the amount of the tax credit will be re-captured.

JUSTIFICATION: Hurricane Sandy left many New York counties devastated and without

power for weeks. Due to this, many gas stations were left without power and were unable to meet the demands of thousands who were in need of gas for their vehicles and home generators. When fuel became available, many gas stations were still unable to provide it to consumers because their facilities were still without power. Consumers were forced to wait for hours in mile long lines in order to get gas from the few stations that were able to get their power restored. This legislation will ensure that this does not occur again.

This legislation mirrors Florida law and proposed legislation in California. Florida and Louisiana are the only states thus far that require certain service stations and terminals and wholesalers to install an alternate power source. This requirement allows for these stations to remain operable after a major disaster such as Hurricane Sandy. Requiring gas stations to have this alternate power source makes sure that residents have access to gasoline that will enable them to be able to leave the impacted area prior to or after the storm hits as well as to be able to have motor fuel necessary to power their own home generators. Including a tax credit, such as the one proposed in California, will provide financial relief to those facilities that are required to install a generator as well as provide a financial incentive to other facilities to purchase a generator even though they may not be required under this legislation.

This bill will ensure that gas stations have the necessary power to continue to operate when there are large power outages due to a major disaster. This will make sure the New York residents will continue to have access to vital fuel to run their vehicles and own generators which become crucial during the colder months.

LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: Needs to be determined

EFFECTIVE DATE: Effective immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 1208 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when printed to be committed to the Committee on Veterans, Homeland Securi- ty and Military Affairs AN ACT to amend the executive law, the general business law and the tax law, in relation to alternate generated power capacity; and providing for the repeal of certain provisions upon expiration thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 3 of section 21 of the executive law is amended by adding a new paragraph k to read as follows: K. DESIGNATE RETAIL MOTOR FUEL, DIESEL MOTOR FUEL AND KEROSENE STATIONS THROUGHOUT EACH DESIGNATED VULNERABLE COMMUNITY IN THE STATE THAT SHALL BE REQUIRED TO BE CAPABLE OF OPERATING ITS FUEL PUMPS, DISPENSING EQUIPMENT, LIFE SAFETY SYSTEMS AND PAYMENT ACCEPTANCE EQUIP- MENT USING AN ALTERNATE GENERATED POWER SOURCE. SUCH ALTERNATE GENERATED POWER SOURCE SHALL BE AVAILABLE NO LATER THAN TWENTY-FOUR HOURS AFTER A MAJOR DISASTER. EACH DESIGNATED STATION SHALL BE EQUIPPED WITH APPROPRI- ATE WIRING AND TRANSFER SWITCH WHICH SHALL BE INSTALLED BY A CERTIFIED ELECTRICAL CONTRACTOR. EACH DESIGNATED STATION SHALL KEEP A COPY OF A THE DOCUMENTATION OF SUCH INSTALLATION ON SITE OR AT ITS CORPORATE HEAD- QUARTERS. EACH DESIGNATED STATION SHALL KEEP A WRITTEN STATEMENT ATTEST- ING TO THE PERIODIC TESTING AND ENSURED OPERATIONAL CAPACITY OF THE EQUIPMENT. THE REQUIRED DOCUMENTATION SHALL BE MADE AVAILABLE, UPON REQUEST, TO THE DIVISION OF HOMELAND SECURITY AND EMERGENCY SERVICES AND THE DIRECTOR OF EMERGENCY MANAGEMENT AGENCY. THE CRITERIA TO BE USED BY THE COMMISSION IN DESIGNATING SUCH RETAIL STATIONS AND THE LOCATION THEREOF INCLUDE BUT ARE NOT LIMITED TO: (1) LOCATIONS NEAR MAJOR VEHICULAR TRANSPORTATION ROUTES OR DESIGNATED EVACUATION ROUTES TO FACILITATE THE EVACUATION OF PERSONS AWAY FROM THE
DESIGNATED DISASTER AREA OR TOWARDS THE SAFETY OF EMERGENCY TEMPORARY SHELTERS; (2) FACILITY LOCATIONS THAT, DUE TO THE TOPOGRAPHY OF THE AREA, DISTANCE TOWARDS OR AWAY FROM ANY BODY OF WATER, WETLAND OR PHYSICAL FEATURE, OR ANY OTHER CRITERIA ESTABLISHED BY THE COMMISSION WOULD REMAIN VIABLE LOCATIONS THAT COULD SAFELY AND EFFECTIVELY OPERATE BEFORE, DURING AND AFTER A DESIGNATED DECLARATION OF AN EMERGENCY; AND (3) LOCATIONS NEAR TRANSPORTATION HUBS AND OTHER SUITABLE AREAS WITHIN EACH REGION AND EACH COMMUNITY, THAT AFTER THE OCCURRENCE OF SUCH DISAS- TER, COULD BE VALUABLE TO ASSIST IN REGIONAL OR LOCAL RESCUE, RESPONSE, RECOVERY, MITIGATE ACTIVITIES, INCLUDING BUT NOT LIMITED TO, MAKING AVAILABLE MOTOR FUEL TO EMERGENCY VEHICLES, EMERGENCY RESPONDERS, LAW ENFORCEMENT OR TRUCKS AND BUSES USED TO TRANSPORT RESCUE, RESPONSE AND RECOVERY MATERIAL OR PERSONNEL, AND TO SUPPORT THE LOCAL FUEL NEEDS OF EACH COMMUNITY FOR HEAT, COOKING, PORTABLE HOME GENERATOR, LAW ENFORCE- MENT AND OTHER CRITICAL COMMUNITY NEEDS. S 2. The general business law is amended by adding a new section 399- eee to read as follows: S 399-EEE. ALTERNATE GENERATED POWER CAPACITY FOR MOTOR FUEL DISPENS- ING FACILITIES. 1. FOR PURPOSES OF THIS SECTION THE FOLLOWING DEFI- NITIONS APPLY: (A) "MOTOR FUEL TERMINAL FACILITY" AS DEFINED IN PARAGRAPH (K) OF SUBDIVISION ONE OF SECTION THREE HUNDRED NINETY-NINE-EE OF THIS ARTICLE. (B) "WHOLESALER" AS DEFINED IN PARAGRAPH (L) OF SUBDIVISION ONE OF SECTION THREE HUNDRED NINETY-NINE-EE OF THIS ARTICLE. (C) "MAJOR DISASTER" SHALL MEAN OCCURRENCE OR IMMINENT THREAT OF WIDE- SPREAD OR SEVERE DAMAGE, INJURY, OR LOSS OF LIFE OR PROPERTY RESULTING FROM ANY NATURAL OR MAN-MADE CAUSES, INCLUDING, BUT NOT LIMITED TO, FIRE, FLOOD, EARTHQUAKE, HURRICANE, TORNADO, HIGH WATER, LANDSLIDE, MUDSLIDE, WIND, STORM, WAVE ACTION, VOLCANIC ACTIVITY, EPIDEMIC, AIR CONTAMINATION, TERRORISM, CYBER EVENT, BLIGHT, DROUGHT, INFESTATION, EXPLOSION, RADIOLOGICAL ACCIDENT, NUCLEAR, CHEMICAL, BIOLOGICAL, OR BACTERIOLOGICAL RELEASE, WATER CONTAMINATION, BRIDGE FAILURE OR BRIDGE COLLAPSE. (D) "MOTOR FUEL RETAIL OUTLET" AS DEFINED IN PARAGRAPH (H) OF SUBDIVI- SION ONE OF SECTION THREE HUNDRED NINETY-NINE-EE OF THIS ARTICLE. (E) "SUBSTANTIALLY RENOVATED" SHALL MEAN A RENOVATION THAT RESULTS IN AN INCREASE OF GREATER THAN FIFTY PERCENT IN THE ASSESSED VALUE OF THE MOTOR FUEL RETAIL OUTLET. 2. BY SEPTEMBER FIRST, TWO THOUSAND FOURTEEN EACH MOTOR FUEL TERMINAL FACILITY AND EACH WHOLESALER WHICH SELLS MOTOR FUEL IN THE STATE SHALL BE CAPABLE OF OPERATING ITS DISTRIBUTION LOADING RACKS USING AN ALTER- NATE GENERATED POWER SOURCE FOR A MINIMUM OF SEVENTY-TWO HOURS. PENDING A POST-DISASTER EXAMINATION OF THE EQUIPMENT BY THE OPERATOR TO DETER- MINE ANY EXTENUATING DAMAGE THAT WOULD RENDER IT UNSAFE TO USE, THE FACILITY SHALL HAVE SUCH ALTERNATE GENERATED POWER SOURCE AVAILABLE FOR OPERATION NO LATER THAN TWENTY-FOUR HOURS AFTER A MAJOR DISASTER. INSTALLATION OF APPROPRIATE WIRING, INCLUDING A TRANSFER SWITCH, SHALL BE DONE BY A CERTIFIED ELECTRICAL CONTRACTOR. EACH BUSINESS THAT IS SUBJECT TO THIS SECTION SHALL KEEP A COPY OF THE DOCUMENTATION OF SUCH INSTALLATION ON SITE OR AT ITS CORPORATE HEADQUARTERS. EACH BUSINESS SHALL KEEP A WRITTEN STATEMENT ATTESTING TO THE PERIODIC TESTING AND ENSURED OPERATIONAL CAPACITY OF THE EQUIPMENT. THE REQUIRED DOCUMENTA- TION SHALL BE MADE AVAILABLE, UPON REQUEST, TO THE DIVISION OF HOMELAND SECURITY AND EMERGENCY SERVICES AND THE DIRECTOR OF THE COUNTY EMERGENCY MANAGEMENT AGENCY.
3. EACH NEWLY CONSTRUCTED OR SUBSTANTIALLY RENOVATED MOTOR FUEL OUTLET, FOR WHICH A CERTIFICATE OF OCCUPANCY IS ISSUED ON OR AFTER SEPTEMBER FIRST, TWO THOUSAND THIRTEEN SHALL BE PRE-WIRED WITH AN APPRO- PRIATE TRANSFER SWITCH, AND CAPABLE OF OPERATING FUEL PUMPS, DISPENSING EQUIPMENT, LIFE SAFETY SYSTEMS, AND PAYMENT ACCEPTANCE EQUIPMENT USING AN ALTERNATE GENERATED POWER SOURCE. LOCAL BUILDING INSPECTORS SHALL INCLUDE THIS EQUIPMENT AND OPERATIONS CHECK IN THE NORMAL INSPECTION PROCESS BEFORE ISSUING A CERTIFICATE OF OCCUPANCY ON SITE OR AT ITS CORPORATE HEADQUARTERS. IN ADDITION, EACH RETAIL OUTLET MUST KEEP A WRITTEN STATEMENT ATTESTING TO THE PERIODIC TESTING OF AND ENSURED OPER- ATIONAL CAPACITY OF THE EQUIPMENT. THE REQUIRED DOCUMENTS MUST BE MADE AVAILABLE, UPON REQUEST, TO THE DIVISION OF HOMELAND SECURITY AND EMER- GENCY MANAGEMENT AND THE DIRECTOR OF THE COUNTY EMERGENCY MANAGEMENT AGENCY. 4. (A) SUBDIVISION TWO OF THIS SECTION, AND PARAGRAPH K OF SUBDIVISION THREE OF SECTION TWENTY-ONE OF THE EXECUTIVE LAW APPLY TO ANY SELF SERVICE, FULL SERVICE OR COMBINATION SELF-SERVICE AND FULL SERVICE MOTOR FUEL RETAIL OUTLET REGARDLESS OF WHETHER THE FUEL RETAIL OUTLET IS LOCATED ON THE GROUNDS OF, OR IS OWNED BY, ANOTHER RETAIL BUSINESS ESTABLISHMENT THAT DOES NOT ENGAGE IN THE BUSINESS OF SELLING MOTOR FUEL. (B) SUBDIVISION TWO OF THIS SECTION, AND PARAGRAPH K OF SUBDIVISION THREE OF SECTION TWENTY-ONE OF THE EXECUTIVE LAW SHALL NOT APPLY TO: (I) AN AUTOMOBILE DEALER; (II) A PERSON WHO OPERATES A FLEET OF MOTOR VEHICLES; (III) A PERSON WHO SELLS MOTOR FUEL EXCLUSIVELY TO A FLEET OF MOTOR VEHICLES; OR (IV) A MOTOR FUEL RETAIL OUTLET THAT HAS A WRITTEN AGREEMENT WITH A PUBLIC HOSPITAL, IN A FORM APPROVED BY THE DIVISION OF EMERGENCY MANAGE- MENT, WHEREIN THE PUBLIC HOSPITAL AGREES TO PROVIDE THE MOTOR FUEL RETAIL OUTLET WITH AN ALTERNATIVE MEANS OF POWER GENERATION ONSITE SO THAT THE OUTLET'S FUEL PUMPS MAY BE OPERATED IN THE EVENT OF A POWER OUTAGE. 5. (A) EACH CORPORATION OR OTHER ENTITY THAT OWNS TEN OR MORE MOTOR FUEL RETAIL OUTLETS LOCATED WITHIN A SINGLE COUNTY SHALL MAINTAIN AT LEAST ONE PORTABLE GENERATOR THAT IS CAPABLE OF PROVIDING AN ALTERNATE GENERATED POWER SOURCE AS REQUIRED UNDER SUBDIVISION TWO OF THIS SECTION FOR EVERY TEN OUTLETS. IF AN ENTITY OWNS MORE THAN TEN OUTLETS OR A MULTIPLE OF TEN OUTLETS PLUS AN ADDITIONAL SIX OUTLETS, THE ENTITY MUST PROVIDE AN ADDITIONAL GENERATOR TO ACCOMMODATE SUCH ADDITIONAL OUTLETS. EACH PORTABLE GENERATOR MUST BE STORED WITHIN THIS STATE AND MUST BE AVAILABLE FOR USE IN AN AFFECTED LOCATION WITHIN TWENTY-FOUR HOURS AFTER THE DISASTER. (B) FOR PURPOSES OF THIS SECTION, OWNERSHIP OF A MOTOR FUEL RETAIL OUTLET IS THE OWNER OF RECORD OF THE FUEL STORAGE SYSTEMS OPERATING AT THE LOCATION. S 3. The tax law is amended by adding a new section 187-s to read as follows: S 187-S. TAX CREDIT FOR ALTERNATE GENERATED STORAGE. (A) (1) FOR EACH TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN THERE SHALL BE ALLOWED AS A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE AN AMOUNT EQUAL TO FIFTY PERCENT OF THE AMOUNT PAID OR INCURRED DURING THE TAXABLE YEAR FOR THE PURCHASE AND INSTALLATION OF AN ALTERNATE GENERATED POWER SOURCE AT A MOTOR FUEL RETAIL OUTLET LOCATED IN THE STATE AS REQUIRED BY SUBDIVI- SION TWO OF SECTION THREE HUNDRED NINETY-NINE-EEE OF THE GENERAL BUSI-
NESS LAW AND PARAGRAPH K OF SUBDIVISION THREE OF SECTION TWENTY-ONE OF THE EXECUTIVE LAW. (2) FOR EACH TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN THERE SHALL BE ALLOWED AS A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE AN AMOUNT EQUAL TO FIFTY PERCENT OF THE AMOUNT PAID OR INCURRED DURING THE TAXABLE YEAR FOR THE PURCHASE AND INSTALLATION OF AN ALTERNATE GENERATED POWER SOURCE AT A MOTOR FUEL RETAIL OUTLET LOCATED IN THE STATE THAT IS NOT SUBJECT TO THE REQUIREMENTS UNDER SUBDIVISION TWO OF SECTION THREE HUNDRED NINETY-NINE-EEE OF THE GENERAL BUSINESS LAW AND PARAGRAPH K OF SUBDIVISION THREE OF SECTION TWENTY-ONE OF THE EXECUTIVE LAW, NOT TO EXCEED TWO THOUSAND FIVE HUNDRED DOLLARS. (B) IF AN ALTERNATE GENERATED POWER SOURCE FOR WHICH A CREDIT IS ALLOWED PURSUANT TO THIS SECTION IS THEREAFTER SOLD, RETURNED TO THE VENDOR, OR OTHERWISE REMOVED FROM SERVICE BY THE TAXPAYER WITHIN ONE YEAR FROM THE DATE THE ALTERNATE GENERATED POWER SOURCE WAS PLACED IN SERVICE, THE AMOUNT OF CREDIT ALLOWED BY THIS SECTION FOR THE PURCHASE AND INSTALLATION OF THAT ALTERNATE GENERATED POWER SOURCE SHALL BE RECAPTURED BY ADDING THAT CREDIT AMOUNT TO THE TAX OF THE TAXPAYER FOR THE TAXABLE YEAR IN WHICH THE ALTERNATE GENERATED POWER SOURCE IS SOLD OR REMOVED. (C) IN THE CASE WHERE THE TAX CREDIT IS NOT EXHAUSTED IN THE TAXABLE YEAR ANY EXCESS MAY BE CARRIED OVER IN THE FOLLOWING YEAR, AND FIVE SUCCEEDING YEARS IF NECESSARY, AND MAY BE DEDUCTED FROM THE TAX IMPOSED BY THIS ARTICLE UNTIL SUCH CREDIT IS EXHAUSTED. S 4. Section 210 of the tax law is amended by adding a new subdivision 46 to read as follows: 46. TAX CREDIT FOR ALTERNATE GENERATED STORAGE. (A) (1) FOR EACH TAXA- BLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN THERE SHALL BE ALLOWED AS A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE AN AMOUNT EQUAL TO FIFTY PERCENT OF THE AMOUNT PAID OR INCURRED DURING THE TAXABLE YEAR FOR THE PURCHASE AND INSTALLATION OF AN ALTERNATE GENERATED POWER SOURCE AT A MOTOR FUEL RETAIL OUTLET LOCATED IN THE STATE AS REQUIRED BY SUBDIVISION TWO OF SECTION THREE HUNDRED NINETY-NINE-EEE OF THE GENERAL BUSINESS LAW AND PARAGRAPH K OF SUBDIVISION THREE OF SECTION TWENTY-ONE OF THE EXECU- TIVE LAW. (2) FOR EACH TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN THERE SHALL BE ALLOWED AS A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE AN AMOUNT EQUAL TO FIFTY PERCENT OF THE AMOUNT PAID OR INCURRED DURING THE TAXABLE YEAR FOR THE PURCHASE AND INSTALLATION OF AN ALTERNATE GENERATED POWER SOURCE AT A MOTOR FUEL RETAIL OUTLET LOCATED IN THE STATE THAT IS NOT SUBJECT TO THE REQUIREMENTS UNDER SUBDIVISION TWO OF SECTION THREE HUNDRED NINETY-NINE-EEE OF THE GENERAL BUSINESS LAW AND PARAGRAPH K OF SUBDIVISION THREE OF SECTION TWENTY-ONE OF THE EXECUTIVE LAW, NOT TO EXCEED TWO THOUSAND FIVE HUNDRED DOLLARS. (B) THE FOLLOWING DEFINITIONS APPLY FOR PURPOSES OF THIS SECTION: (1) "ALTERNATE GENERATED POWER SOURCE" MEANS AN ELECTRICAL GENERATOR THAT IS RATED BY THE MANUFACTURER TO GENERATE AT LEAST THIRTY KILOWATTS OF ELECTRICITY AND WHOSE SOLE FUNCTION IS TO AUTOMATICALLY PROVIDE ELEC- TRIC POWER WHEN ELECTRIC POWER FROM A UTILITY SERVICE IS INTERRUPTED. (2) "MOTOR FUEL RETAIL OUTLET" AS DEFINED IN PARAGRAPH (H) OF SUBDIVI- SION ONE OF SECTION THREE HUNDRED NINETY-NINE-EE OF THE GENERAL BUSINESS LAW AND IS OWNED BY A TAXPAYER WITH WORLDWIDE GROSS RECEIPTS OF LESS THAN ONE MILLION DOLLARS FOR ANY TAXABLE YEAR FOR WHICH THE CREDIT
AUTHORIZED BY THIS SECTION IS CLAIMED. THE GROSS RECEIPTS OF ANY TRADES OR BUSINESSES THAT ARE TREATED AS RELATED UNDER SECTION 267, 318 OR 707 OF THE INTERNAL REVENUE CODE SHALL BE AGGREGATED FOR PURPOSES OF DETER- MINING WORLDWIDE GROSS RECEIPTS. (3) "GROSS RECEIPTS" SHALL HAVE THE SAME MEANING AS SET FORTH IN SECTION ONE HUNDRED EIGHTY-TWO-A OF THIS CHAPTER. (C) THE DEPRECIABLE BASIS OF ANY ALTERNATE GENERATED POWER SOURCE SHALL BE REDUCED BY THE AMOUNT OF ANY CREDIT ALLOWABLE UNDER THIS SECTION. (D) IF AN ALTERNATE GENERATED POWER SOURCE FOR WHICH A CREDIT IS ALLOWED PURSUANT TO THIS SECTION IS THEREAFTER SOLD, RETURNED TO THE VENDOR, OR OTHERWISE REMOVED FROM SERVICE BY THE TAXPAYER WITHIN ONE YEAR FROM THE DATE THE ALTERNATE GENERATED POWER SOURCE WAS PLACED IN SERVICE, THE AMOUNT OF CREDIT ALLOWED BY THIS SECTION FOR THE PURCHASE AND INSTALLATION OF THAT ALTERNATE GENERATED POWER SOURCE SHALL BE RECAPTURED BY ADDING THAT CREDIT AMOUNT TO THE TAX OF THE TAXPAYER FOR THE TAXABLE YEAR IN WHICH THE ALTERNATE GENERATED POWER SOURCE IS SOLD OR REMOVED. (E) IN THE CASE WHERE THE TAX CREDIT IS NOT EXHAUSTED IN THE TAXABLE YEAR ANY EXCESS MAY BE CARRIED OVER IN THE FOLLOWING YEAR, AND FIVE SUCCEEDING YEARS IF NECESSARY, AND MAY BE DEDUCTED FROM THE TAX IMPOSED BY THIS ARTICLE UNTIL SUCH CREDIT IS EXHAUSTED. S 5. Section 606 of the tax law is amended by adding a new subsection (u) to read as follows: (U) TAX CREDIT FOR ALTERNATE GENERATED STORAGE. (1) (A) FOR EACH TAXA- BLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN THERE SHALL BE ALLOWED AS A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE AN AMOUNT EQUAL TO FIFTY PERCENT OF THE AMOUNT PAID OR INCURRED DURING THE TAXABLE YEAR FOR THE PURCHASE AND INSTALLATION OF AN ALTERNATE GENERATED POWER SOURCE AT A MOTOR FUEL RETAIL OUTLET LOCATED IN THE STATE AS REQUIRED BY SUBDIVISION TWO OF SECTION THREE HUNDRED NINETY-NINE-EEE OF THE GENERAL BUSINESS LAW AND PARAGRAPH K OF SUBDIVISION THREE OF SECTION TWENTY-ONE OF THE EXECU- TIVE LAW. (B) FOR EACH TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN THERE SHALL BE ALLOWED AS A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE AN AMOUNT EQUAL TO FIFTY PERCENT OF THE AMOUNT PAID OR INCURRED DURING THE TAXABLE YEAR FOR THE PURCHASE AND INSTALLATION OF AN ALTERNATE GENERATED POWER SOURCE AT A MOTOR FUEL RETAIL OUTLET LOCATED IN THE STATE THAT IS NOT SUBJECT TO THE REQUIREMENTS UNDER SUBDIVISION TWO OF SECTION THREE HUNDRED NINETY-NINE-EEE OF THE GENERAL BUSINESS LAW AND PARAGRAPH K OF SUBDIVISION THREE OF SECTION TWENTY-ONE OF THE EXECUTIVE LAW, NOT TO EXCEED TWO THOUSAND FIVE HUNDRED DOLLARS. (2) THE FOLLOWING DEFINITIONS APPLY FOR PURPOSES OF THIS SECTION: (A) "ALTERNATE GENERATED POWER SOURCE" MEANS AN ELECTRICAL GENERATOR THAT IS RATED BY THE MANUFACTURER TO GENERATE AT LEAST THIRTY KILOWATTS OF ELECTRICITY AND WHOSE SOLE FUNCTION IS TO AUTOMATICALLY PROVIDE ELEC- TRIC POWER WHEN ELECTRIC POWER FROM A UTILITY SERVICE IS INTERRUPTED. (B) "MOTOR FUEL RETAIL OUTLET" AS DEFINED IN PARAGRAPH (H) OF SUBDIVI- SION ONE OF SECTION THREE HUNDRED NINETY-NINE-EE OF THE GENERAL BUSINESS LAW AND IS OWNED BY A TAXPAYER WITH WORLDWIDE GROSS RECEIPTS OF LESS THAN ONE MILLION DOLLARS FOR ANY TAXABLE YEAR FOR WHICH THE CREDIT AUTHORIZED BY THIS SECTION IS CLAIMED. THE GROSS RECEIPTS OF ANY TRADES OR BUSINESSES THAT ARE TREATED AS RELATED UNDER SECTION 267, 318 OR 707
OF THE INTERNAL REVENUE CODE SHALL BE AGGREGATED FOR PURPOSES OF DETER- MINING WORLDWIDE GROSS RECEIPTS. (C) "GROSS RECEIPTS" SHALL HAVE THE SAME MEANING AS SET FORTH IN SECTION ONE HUNDRED EIGHTY-TWO-A OF THIS CHAPTER. (3) THE DEPRECIABLE BASIS OF ANY ALTERNATE GENERATED POWER SOURCE SHALL BE REDUCED BY THE AMOUNT OF ANY CREDIT ALLOWABLE UNDER THIS SECTION. (4) IF AN ALTERNATE GENERATED POWER SOURCE FOR WHICH A CREDIT IS ALLOWED PURSUANT TO THIS SECTION IS THEREAFTER SOLD, RETURNED TO THE VENDOR, OR OTHERWISE REMOVED FROM SERVICE BY THE TAXPAYER WITHIN ONE YEAR FROM THE DATE THE ALTERNATE GENERATED POWER SOURCE WAS PLACED IN SERVICE, THE AMOUNT OF CREDIT ALLOWED BY THIS SECTION FOR THE PURCHASE AND INSTALLATION OF THAT ALTERNATE GENERATED POWER SOURCE SHALL BE RECAPTURED BY ADDING THAT CREDIT AMOUNT TO THE TAX OF THE TAXPAYER FOR THE TAXABLE YEAR IN WHICH THE ALTERNATE GENERATED POWER SOURCE IS SOLD OR REMOVED. (5) IN THE CASE WHERE THE TAX CREDIT IS NOT EXHAUSTED IN THE TAXABLE YEAR ANY EXCESS MAY BE CARRIED OVER IN THE FOLLOWING YEAR, AND FIVE SUCCEEDING YEARS IF NECESSARY, AND MAY BE DEDUCTED FROM THE TAX IMPOSED BY THIS ARTICLE UNTIL SUCH CREDIT IS EXHAUSTED. S 6. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xxxv) to read as follows: (XXXV) ALTERNATE GENERATED STORAGE AMOUNT OF CREDIT UNDER CREDIT UNDER SUBSECTION (U) SUBDIVISION FORTY-SIX OF SECTION TWO HUNDRED TEN S 7. This act shall take effect immediately; provided the provisions of sections three, four, five and six of this act shall expire and be deemed repealed January 1, 2018.

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