This bill has been amended

Bill S2520-2013

Creates the clean fuel and job creation tax credit of 2013

Creates the clean fuel and job creation tax credit of 2014 to incentivize power plants to repower existing facilities or construct new facilities which use cleaner burning fuels or add significant pollution control technologies.

Details

Actions

  • Feb 4, 2013: REPORTED AND COMMITTED TO FINANCE
  • Jan 18, 2013: REFERRED TO ENERGY AND TELECOMMUNICATIONS

Meetings

Votes

VOTE: COMMITTEE VOTE: - Energy and Telecommunications - Feb 4, 2013
Ayes (10): Maziarz, Carlucci, Fuschillo, Griffo, O'Mara, Ritchie, Robach, Parker, Adams, Kennedy
Ayes W/R (1): Dilan

Memo

BILL NUMBER:S2520

TITLE OF BILL: An act to amend the public service law and the tax law, in relation to creating the clean fuel and job creation tax credit of 2013 to incentivize power plants to repower existing facilities or construct new facilities which use cleaner burning fuels or add significant pollution control technologies

PURPOSE: To create the clean fuel and job creation tax credit to incentivize power plants to repower existing facilities or construct new facilities which use cleaner burning fuels or add significant pollution control technologies.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends the public service law to authorize the department of public service to request information from the department of taxation and finance in relation to electric generating facilities that have received a clean fuel and job creation tax credit.

Sections 2, 3, 4, 5 & 6 of the bill amend various sections of the tax law to establish the clean fuel and job creation tax credit, and set forth how it will be applied.

Section 7 is the effective date.

JUSTIFICATION: Many power plants in NYS are contemplating repowering or making other investments in infrastructure in order to meet new environmental standards and to remain competitive in the marketplace. Some power plants are even considering the construction of new electric generating units on the same or adjacent property in order to remain competitive and improve their overall environmental performance. Enhancing competition and improving environmental compliance are worthy goals that should be encouraged and incentivized.

Unfortunately, many of these power plants are prevented from taking steps to repower or otherwise improve their infrastructure and environmental profile because of the high costs associated with doing so. By creating a meaningful tax credit based on beneficial investments in electric generating facilities, these power plants will be able to lower the cost of repowering and other infrastructure upgrade projects. This tax credit, which ranges from 12.5% to 20% based on the amount of the investment, will encourage power plants to undertake important investment projects which will result in a cleaner, stronger and more modem generating. fleet. It will also allow the power plant to maintain job levels and pave the way for job growth.

Further, these power plants often represent a significant portion of the local tax base for the municipality where they are located. Loss of such local tax base will be devastating for these communities. By providing an appropriate tax credit for repowering and other infrastructure projects, this legislation will allow power plants to become more competitive and remain in operation for a longer period of

time. This is a significant benefit for our local communities due to the local tax revenue that will be maintained and because of the jobs it will create in the local economy.

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect on the ninetieth day after it shall become a law.


Text

STATE OF NEW YORK ________________________________________________________________________ 2520 2013-2014 Regular Sessions IN SENATE January 18, 2013 ___________
Introduced by Sens. MAZIARZ, LARKIN, MARCELLINO, RANZENHOFER, RITCHIE, YOUNG -- 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 creating the clean fuel and job creation tax credit of 2013 to incen- tivize power plants to repower existing facilities or construct new facilities which use cleaner burning fuels or add significant pollution control technologies THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The public service law is amended by adding a new section 73 to read as follows: S 73. COORDINATION WITH CERTAIN PROVISIONS OF THE TAX LAW. THE DEPART- MENT MAY REQUEST FROM THE DEPARTMENT OF TAXATION AND FINANCE A LIST OF ELECTRIC GENERATING FACILITIES THAT HAVE BEEN GRANTED A CLEAN FUEL AND JOB CREATION TAX CREDIT AS SUCH CREDIT IS DESCRIBED IN SECTION THIRTY-EIGHT OF THE TAX LAW. THE LIST SHALL INCLUDE THE LOCATION OF THE FACILITY RECEIVING THE CREDIT, A DESCRIPTION OF THE PROJECT TO WHICH THE CREDIT RELATES, THE AMOUNT OF THE CREDIT, AND THE TAX YEAR FOR WHICH THE CREDIT WAS GRANTED. S 2. The tax law is amended by adding a new section 38 to read as follows: S 38. CLEAN FUEL AND JOB CREATION TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SUBJECT TO TAX UNDER ARTICLE NINE, NINE-A OR TWENTY-TWO OF THIS CHAPTER, WHICH IS AN ELECTRIC GENERATING FACILITY, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX, PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION (C) OF THIS SECTION. THE CREDIT SHALL BE ALLOWED FOR CERTAIN INVESTMENTS MADE BY ANY MAJOR ELECTRIC GENERATING FACILITY IN THE STATE SUCH AS REPOWERING PROJECTS, QUALIFIED ENERGY INFRASTRUCTURE INVESTMENTS, AND QUALIFIED NEW CONSTRUCTION PROJECTS AS DESCRIBED IN THIS SECTION. THE CREDIT SHALL BE AS FOLLOWS:
(1) TWELVE AND ONE-HALF PERCENT OF THE FIRST ONE HUNDRED MILLION DOLLARS IN INVESTMENT; (2) FIFTEEN PERCENT OF THE NEXT ONE HUNDRED MILLION DOLLARS IN INVEST- MENT OR PORTION THEREOF; AND (3) TWENTY PERCENT OF THE TOTAL INVESTMENT OVER AND ABOVE TWO HUNDRED MILLION DOLLARS. (B) DEFINITIONS. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (1) "REPOWERING PROJECT" SHALL MEAN IMPROVEMENTS TO AN EXISTING MAJOR ELECTRIC GENERATING FACILITY THAT WILL ALLOW THE FACILITY, OR A NEW UNIT OR UNITS AT THE FACILITY, OR THE COMBINATION OF THE NEW UNIT OR UNITS AND THE FACILITY TO INCREASE ITS OVERALL EFFICIENCY, AS DEMONSTRATED BY A REDUCTION IN HEAT RATE, AND TO MEET THE FOLLOWING RELEVANT ENVIRON- MENTAL REQUIREMENTS: (I) A DECREASE IN THE RATE OF EMISSION EXPRESSED AS A POUNDS PER MEGA- WATT-HOUR REDUCTION OF EACH OF THE RELEVANT SITING AIR CONTAMINANTS; AND (II) COOLING WATER WITHDRAWAL CONSISTENT WITH A RATE EQUAL TO OR LESS THAN CLOSED-CYCLE COOLING. (2) "ENVIRONMENTAL REQUIREMENTS", EXCEPT AS OTHERWISE SPECIFIED IN PARAGRAPH ONE OF THIS SUBDIVISION, SHALL MEAN: (I) AN INCREASE IN OVERALL EFFICIENCY AS DEMONSTRATED BY A REDUCTION IN HEAT RATE; (II) A DECREASE IN THE RATE OF EMISSION EXPRESSED AS A POUNDS PER MEGAWATT-HOUR REDUCTION OF EACH OF THE RELEVANT SITING AIR CONTAMINANTS; AND (III) COOLING WATER WITHDRAWAL CONSISTENT WITH A RATE EQUAL TO OR LESS THAN CLOSED-CYCLE COOLING. (3) "QUALIFIED ENERGY INFRASTRUCTURE INVESTMENT" SHALL MEAN ANY INVESTMENT NEEDED TO DELIVER A NEW FUEL SOURCE TO AN EXISTING ELECTRIC GENERATING FACILITY, REPLACE OR RETROFIT A BURNER OR TURBINE, UTILIZE ON-SITE RENEWABLE ENERGY GENERATION, OR ANY OTHER SUBSTANTIAL INVESTMENT THAT WILL HAVE A DIRECT IMPACT ON THE FACILITY'S ABILITY TO MEET RELE- VANT ENVIRONMENTAL REQUIREMENTS. (4) "QUALIFIED NEW CONSTRUCTION PROJECT" SHALL MEAN CONSTRUCTING A NEW MAJOR ELECTRIC GENERATING FACILITY IN THE SAME LOCATION AS AN EXISTING FACILITY OR ON PROPERTY DIRECTLY ADJACENT OR CONTIGUOUS TO SAID PROPER- TY, WHERE THE NEW FACILITY BY ITSELF OR IN COMBINATION WITH THE EXISTING FACILITY WILL ALLOW THE SITE AS A WHOLE TO MEET RELEVANT ENVIRONMENTAL REQUIREMENTS. (5) "MAJOR ELECTRIC GENERATING FACILITY" SHALL MEAN A MAJOR ELECTRIC GENERATING FACILITY AS DEFINED IN SECTION ONE HUNDRED SIXTY OF THE PUBLIC SERVICE LAW. (C) A MAJOR ELECTRIC GENERATING FACILITY WHICH UNDERTAKES A REPOWERING PROJECT, A QUALIFIED ENERGY INFRASTRUCTURE INVESTMENT, A QUALIFIED NEW CONSTRUCTION PROJECT, OR OTHER INVESTMENT IN POLLUTION CONTROL EQUIPMENT OR ADDITIONAL ENERGY INFRASTRUCTURE WITH THE GOAL OF MEETING RELEVANT ENVIRONMENTAL REQUIREMENTS SHALL BE ALLOWED TO CLAIM A CREDIT UNDER THIS SECTION. S 3. The tax law is amended by adding a new section 187-s to read as follows: S 187-S. CLEAN FUEL AND JOB CREATION TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION THIRTY-EIGHT OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY SECTIONS ONE HUNDRED EIGHTY-THREE AND ONE HUNDRED EIGHTY-FOUR OF THIS ARTICLE.
(B) APPLICATION OF CREDIT. IN NO EVENT SHALL THE CREDIT UNDER THIS SECTION BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN THE APPLICABLE MINIMUM TAX FIXED BY SECTION ONE HUNDRED EIGHT- Y-THREE OR ONE HUNDRED EIGHTY-FOUR OF THIS ARTICLE. IF, HOWEVER, THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. S 4. Section 210 of the tax law is amended by adding a new subdivision 46 to read as follows: 46. CLEAN FUEL AND JOB CREATION TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION THIRTY-EIGHT OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF THIS SECTION. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CRED- IT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR WILL BE TREATED AS AN OVER- PAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT- Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST WILL BE PAID THERE- ON. S 5. Section 606 of the tax law is amended by adding a new subsection (vv) to read as follows: (VV) CLEAN FUEL AND JOB CREATION TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION THIRTY-EIGHT OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS WILL 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 WILL BE PAID THEREON. 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) CLEAN FUEL AND JOB CREATION AMOUNT OF CLEAN FUEL AND CREDIT UNDER SUBSECTION (VV) JOB CREATION CREDIT UNDER SUBDIVISION FORTY-SIX OF SECTION TWO HUNDRED TEN S 7. This act shall take effect on the ninetieth day after it shall have become a law.

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