Bill S3842-2013

Requires certain motor fuel terminal facilities to be capable of operating its distribution loading racks using an alternate generated power source for a minimum of seventy-two hours

Requires motor fuel terminal facilities and wholesalers in the state to be capable of operating its distribution loading racks using an alternate generated power source for a minimum of seventy-two hours.

Details

Actions

  • Apr 17, 2013: RECOMMIT, ENACTING CLAUSE STRICKEN
  • Mar 12, 2013: REPORTED AND COMMITTED TO FINANCE
  • Feb 21, 2013: REFERRED TO VETERANS, HOMELAND SECURITY AND MILITARY AFFAIRS

Meetings

Votes

VOTE: COMMITTEE VOTE: - Veterans, Homeland Security and Military Affairs - Mar 12, 2013
Ayes (10): Ball, Carlucci, Flanagan, Golden, Grisanti, Larkin, Addabbo, Gipson, Sampson, Sanders
Ayes W/R (2): Griffo, Zeldin
Nays (1): Avella

Memo

BILL NUMBER:S3842

TITLE OF BILL: An act to amend the executive law and the tax law, in relation to requiring motor fuel terminal facilities and wholesalers in the state to be capable of operating its distribution loading racks using an alternate generated power source for a minimum of seventy-two hours; and providing for the repeal of certain provisions upon expiration thereof

PURPOSE:

To require certain motor fuel terminal facilities and wholesalers in the state to be capable of operating its distribution loading racks using an alternate generated power source; to require that certain motor fuel retail outlets be prewired with the wiring necessary to operate an alternate generated power source; and to provide tax credits therefor.

SUMMARY OF PROVISIONS:

Section 1 adds a new paragraph k to section 21 of the executive law to provide the Disaster Preparedness Commission with the authority to require that certain motor fuel terminal facilities and wholesalers be capable of operating its distribution loading racks using an alternate generated power source for a minimum of 72-hours. Such alternate generated power source shall be available for operation within 36-hours of a major disaster, pending a post disaster examination of the equipment-and any necessary repairs.

This section also provides the Disaster Preparedness Commission with the authority to require that certain motor fuel retail outlets be prewired with appropriate wiring, including a transfer switch, necessary for the operation of an alternate generated power source that is capable of operating all fuel pumps, dispensing equipment, life safety systems and payment acceptance systems for a minimum of 72-hours, and which shall be required to have access to an alternate generated power source. Such designated outlets shall be: located within one-half mile of an interstate highway or state or federally designated evacuation route; in locations that due to their topography or distance towards or away from a body of water and under criteria established by the Commission, would remain viable and that could safely operate before, during and after a declaration of an emergency; in locations near transportation hubs and other suitable areas that could be valuable to assist in regional or local rescue and response activities; in other locations that are determined by the Commission to be vital to post disaster rescue and recovery operations.

Section 2 adds a new section 187-s to the tax law to provide a credit against the corporation tax for up to fifty percent of the cost to purchase and install an alternate generated power source by a motor fuel terminal facility, wholesaler or. motor fuel retail outlet, capped at $15,000. The credit would also be available for the costs of materials and labor associated with the installation of appropriate wiring, including a transfer switch, necessary for the operation of an alternate generated power source by a motor fuel retail outlet, capped at $5,000. The credit will be available from January 1, 2014 until January 1, 2018. In order to qualify for the credit, the installation

of appropriate wiring and transfer switches shall be performed by a certified electrical contractor and certified as operational by the local building inspector. Expenditures for interest or other finance charges, as-well as the amount of any federal, state or local grants received by the taxpayer are excluded from the amount eligible for the credit. The amount of any credit will be recaptured if an alternate generated power source is returned or removed from service within one year. Lastly, the amount of any unused credit is not refundable, but can be carried over for up to five additional years.

Section 3 adds a new subdivision 46 to section 210 of the tax law to provide a credit, as described above, against the business franchise tax.

Section 4 adds a new subsection (u) to section 606 of the tax law to provide a credit, as described above, against the personal income tax.

Section 5 adds a new clause (xxxv) to subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law to make conforming changes regarding the above tax credit.

Section 6 provides the effective date.

JUSTIFICATION:

Hurricane Sandy left many New York counties devastated and without power for weeks. Due to this, many facilities along the motor fuel supply chain 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 terminals and wholesalers to install an alternate generated power source, and that certain service stations to be prewired to be capable of operating an alternate generated power source. This requirement allows for these facilities to remain operable after a major disaster such as Hurricane Sandy. Requiring gas stations to be prewired and have an alternate power source available for use makes sure that residents have access to gasoline, enabling them to be able to leave the impacted area prior to or after the storm hits, as well as to be able to have fuel necessary to power their own home generators. Including a tax credit will provide financial relief to those facilities that are required to install a generator or be prewired, as well as provide a financial incentive to other facilities to be prewired or purchase a generator.

This bill will ensure that facilities along the motor fuel supply chain 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; similar to S.1208-A.

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

This act shall take effect immediately; provided that the provisions of section two, three, four and five of this act shall expire and be deemed repealed January 1, 2018.


Text

STATE OF NEW YORK ________________________________________________________________________ 3842 2013-2014 Regular Sessions IN SENATE February 21, 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 and the tax law, in relation to requiring motor fuel terminal facilities and wholesalers in the state to be capable of operating its distribution loading racks using an alternate generated power source for a minimum of seventy-two hours; 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. Subparagraph 3 of paragraph i and paragraph j of subdivi- sion 3 of section 21 of the executive law, as amended by section 2 of part B of chapter 56 of the laws of 2010, are amended and a new para- graph k is added to read as follows: (3) the status of the state and local plans for disaster preparedness and response, including the name of any locality which has failed or refused to develop and implement its own disaster preparedness plan and program; and the extent to which all forms of local emergency response assets have been included, and accounted for in planning and preparation for disaster preparedness and response; [and] j. develop public service announcements to be distributed to tele- vision and radio stations and other media throughout the state informing the public how to prepare and respond to disasters. Such public service announcements shall be distributed in English and such other languages as such commission deems appropriate[.]; K. (1) NOTWITHSTANDING THE PROVISIONS OF THIS SECTION, CHAPTER OR ANY PROVISIONS TO THE CONTRARY CONTAINED IN ANY GENERAL, SPECIAL OR LOCAL LAWS, DESIGNATE MOTOR FUEL TERMINAL FACILITIES AND WHOLESALERS IN THE STATE THAT SHALL BE REQUIRED TO BE CAPABLE OF OPERATING ITS DISTRIBUTION LOADING RACKS USING AN ALTERNATE GENERATED POWER SOURCE FOR A MINIMUM OF
SEVENTY-TWO HOURS. PENDING A POST DISASTER EXAMINATION OF THE EQUIPMENT BY THE OPERATOR TO DETERMINE EXTENUATING DAMAGE THAT WOULD RENDER IT UNSAFE TO OPERATE AND ANY NECESSARY REPAIRS, THE FACILITY SHALL HAVE SUCH ALTERNATE GENERATED POWER SOURCE AVAILABLE FOR OPERATION NO LATER THAN THIRTY-SIX HOURS AFTER A MAJOR DISASTER. "MAJOR DISASTER" SHALL MEAN OCCURRENCE OR IMMINENT THREAT OF WIDESPREAD OR SEVERE DAMAGE, INJU- RY OR LOSS OF LIFE OR PROPERTY RESULTING FROM ANY NATURAL OR MAN-MADE CAUSES, INCLUDING, BUT NOT LIMITED TO, FIRE, FLOOD, EARTHQUAKE, HURRI- CANE, 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 CONTAM- INATION, BRIDGE FAILURE OR BRIDGE COLLAPSE. INSTALLATION OF APPROPRIATE WIRING, INCLUDING A TRANSFER SWITCH, SHALL BE PERFORMED BY A CERTIFIED ELECTRICAL CONTRACTOR AND CERTIFIED AS OPERATIONAL BY THE LOCAL BUILDING INSPECTOR. EACH BUSINESS SHALL KEEP A COPY OF THE DOCUMENTATION OF SUCH INSTALLATION ON SITE OR AT ITS CORPORATE HEADQUARTERS. IN ADDITION, EACH BUSINESS SHALL KEEP A WRITTEN STATEMENT ATTESTING TO THE PERIODIC TEST- ING AND ENSURED OPERATIONAL CAPACITY OF THE EQUIPMENT. THE REQUIRED DOCUMENTS SHALL BE MADE AVAILABLE, UPON REQUEST, TO THE COMMISSION OR LOCAL EMERGENCY MANAGEMENT AGENCY. (2) NOTWITHSTANDING THE PROVISIONS OF THIS SECTION, CHAPTER OR ANY PROVISIONS TO THE CONTRARY CONTAINED IN ANY GENERAL, SPECIAL OR LOCAL LAWS, DESIGNATE MOTOR FUEL RETAIL OUTLETS THROUGHOUT EACH DESIGNATED VULNERABLE COMMUNITY IN THE STATE THAT SHALL BE REQUIRED TO INSTALL APPROPRIATE WIRING, INCLUDING A TRANSFER SWITCH, NECESSARY FOR THE OPER- ATION OF AN ALTERNATE GENERATED POWER SOURCE CAPABLE OF OPERATING ALL FUEL PUMPS, DISPENSING EQUIPMENT, LIFE SAFETY SYSTEMS AND PAYMENT ACCEPTANCE SYSTEMS FOR A MINIMUM OF SEVENTY-TWO HOURS AND WHICH SHALL BE REQUIRED TO HAVE ACCESS TO SUCH ALTERNATE GENERATED POWER SOURCE. PEND- ING A POST DISASTER EXAMINATION OF THE EQUIPMENT BY THE OPERATOR TO DETERMINE EXTENUATING DAMAGE THAT WOULD RENDER IT UNSAFE TO OPERATE AND ANY NECESSARY REPAIRS, THE FACILITY SHALL HAVE SUCH ALTERNATE GENERATED POWER SOURCE AVAILABLE FOR OPERATION NO LATER THAN THIRTY-SIX HOURS AFTER A MAJOR DISASTER. "MAJOR DISASTER" SHALL MEAN OCCURRENCE OR IMMI- NENT THREAT OF WIDESPREAD 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 FAIL- URE OR BRIDGE COLLAPSE. INSTALLATION OF APPROPRIATE WIRING, INCLUDING A TRANSFER SWITCH, SHALL BE PERFORMED BY A CERTIFIED ELECTRICAL CONTRACTOR AND CERTIFIED AS OPERATIONAL BY THE LOCAL BUILDING INSPECTOR. EACH BUSI- NESS SHALL KEEP A COPY OF THE DOCUMENTATION OF SUCH INSTALLATION ON SITE OR AT ITS CORPORATE HEADQUARTERS. IN ADDITION, EACH BUSINESS SHALL KEEP A WRITTEN STATEMENT ATTESTING TO THE PERIODIC TESTING AND ENSURED OPERA- TIONAL CAPACITY OF THE EQUIPMENT. THE REQUIRED DOCUMENTS SHALL BE MADE AVAILABLE, UPON REQUEST, TO THE COMMISSION OR LOCAL EMERGENCY MANAGEMENT AGENCY. SUCH DESIGNATED OUTLETS: (I) SHALL BE LOCATED WITHIN ONE-HALF MILE PROXIMATE TO AN INTERSTATE HIGHWAY OR STATE OR FEDERALLY DESIGNATED EVACUATION ROUTE; OR (II) SHALL BE IN 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 DECLARATION OF AN EMERGENCY; OR (III) SHALL BE IN LOCATIONS NEAR TRANSPORTATION HUBS AND OTHER SUIT- ABLE AREAS WITHIN EACH REGION AND EACH COMMUNITY THAT, AFTER THE OCCUR- RENCE OF SUCH DISASTER, COULD BE VALUABLE TO ASSIST IN REGIONAL OR LOCAL RESCUE, RESPONSE, RECOVERY OR MITIGATION 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 ENFORCEMENT AND OTHER CRITICAL COMMUNITY NEEDS; OR (IV) SHALL BE IN OTHER SUCH LOCATIONS THAT ARE DETERMINED BY THE COMMISSION TO BE VITAL TO POST DISASTER RESPONSE AND RECOVERY OPER- ATIONS; (V) SHALL NOT INCLUDE AN AUTOMOBILE DEALER, A PERSON WHO OPERATES A FLEET OF MOTOR VEHICLES, A PERSON WHO SELLS MOTOR FUEL EXCLUSIVELY TO A FLEET OF MOTOR VEHICLES OR A MOTOR FUEL RETAIL OUTLET THAT HAS A WRITTEN AGREEMENT WITH A PUBLIC HOSPITAL, IN A FORM APPROVED BY THE DIVISION OF EMERGENCY MANAGEMENT, WHEREIN THE PUBLIC HOSPITAL AGREES TO PROVIDE THE MOTOR FUEL RETAIL OUTLET WITH AN ALTERNATE MEANS OF POWER GENERATION ONSITE SO THAT THE OUTLET'S FUEL PUMPS MAY BE OPERATED IN THE EVENT OF A POWER OUTAGE. S 2. The tax law is amended by adding a new section 187-s to read as follows: S 187-S. ALTERNATE GENERATED POWER SOURCE EQUIPMENT EXPENDITURES CRED- IT. (1) ALLOWANCE OF CREDIT. FOR EACH TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOU- SAND EIGHTEEN THERE SHALL BE ALLOWED AS A CREDIT, TO BE COMPUTED AS PROVIDED IN SUBDIVISION THREE OF THIS SECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR QUALIFIED ALTERNATE GENERATED POWER SOURCE EQUIPMENT EXPENDITURES AT A MOTOR FUEL TERMINAL FACILITY, WHOLESALER OR MOTOR FUEL RETAIL OUTLET LOCATED IN THE STATE; PROVIDED, HOWEVER, THAT THE TAXPAYER SHALL NOT CLAIM MORE THAN ONE CREDIT FOR ANY ONE FACILITY. (2) DEFINITIONS. FOR THE 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 THE GENERAL BUSINESS LAW; (B) "WHOLESALER" AS DEFINED IN PARAGRAPH (L) OF SUBDIVISION ONE OF SECTION THREE HUNDRED NINETY-NINE-EE OF THE GENERAL BUSINESS LAW; (C) "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; (D) "QUALIFIED ALTERNATE GENERATED POWER SOURCE EQUIPMENT EXPENDI- TURES" SHALL MEAN: (I) COSTS INCURRED BY A MOTOR FUEL TERMINAL FACILITY, WHOLESALER OR MOTOR FUEL RETAIL OUTLET IN THE STATE ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN ASSOCIATED WITH THE PURCHASE AND INSTALLATION OF AN ALTERNATE GENERATED POWER SOURCE THAT IS CAPABLE OF OPERATING ALL DISTRIBUTION LOADING RACKS, FUEL PUMPS, DISPENSING EQUIPMENT, LIFE SAFETY SYSTEMS AND PAYMENT ACCEPTANCE SYSTEMS, AS APPLICABLE, FOR A MINIMUM OF SEVENTY-TWO HOURS; OR (II) COSTS INCURRED BY A MOTOR FUEL RETAIL OUTLET IN THE STATE ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN FOR MATERIALS AND LABOR ASSOCIATED WITH THE INSTALLA- TION OF APPROPRIATE WIRING, INCLUDING A TRANSFER SWITCH, NECESSARY FOR
THE OPERATION OF AN ALTERNATE GENERATED POWER SOURCE THAT IS CAPABLE OF OPERATING ALL FUEL PUMPS, DISPENSING EQUIPMENT, LIFE SAFETY SYSTEMS AND PAYMENT ACCEPTANCE SYSTEMS FOR A MINIMUM OF SEVENTY-TWO HOURS; (III) INSTALLATION OF APPROPRIATE WIRING AND TRANSFER SWITCHES SHALL BE PERFORMED BY A CERTIFIED ELECTRICAL CONTRACTOR AND CERTIFIED AS OPER- ATIONAL BY THE LOCAL BUILDING INSPECTOR; (IV) SUCH QUALIFIED EXPENDITURES SHALL NOT INCLUDE INTEREST OR OTHER FINANCE CHARGES; (V) THE AMOUNT OF ANY FEDERAL, STATE OR LOCAL GRANT RECEIVED BY THE TAXPAYER, WHICH IS USED FOR QUALIFIED ALTERNATE GENERATED POWER SOURCE EQUIPMENT EXPENDITURES SHALL NOT BE INCLUDED IN THE AMOUNT OF SUCH QUAL- IFIED EXPENDITURES. (3) AMOUNT OF CREDIT. THE AMOUNT OF CREDIT SHALL EQUAL FIFTY PERCENT OF QUALIFIED ALTERNATE GENERATED POWER SOURCE EQUIPMENT EXPENDITURES. SUCH CREDIT AMOUNT SHALL NOT EXCEED FIFTEEN THOUSAND DOLLARS FOR QUALI- FIED ALTERNATE GENERATED POWER SOURCE EQUIPMENT EXPENDITURES AS PROVIDED IN SUBPARAGRAPH (I) OF PARAGRAPH (D) OF SUBDIVISION TWO OF THIS SECTION, OR FIVE THOUSAND DOLLARS FOR QUALIFIED ALTERNATE GENERATED POWER SOURCE EQUIPMENT EXPENDITURES AS PROVIDED IN SUBPARAGRAPH (II) OF PARAGRAPH (D) OF SUBDIVISION TWO OF THIS SECTION. (4) CREDIT RECAPTURE. 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) CARRYOVER. 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 3. Section 210 of the tax law is amended by adding a new subdivision 46 to read as follows: 46. ALTERNATE GENERATED POWER SOURCE EQUIPMENT EXPENDITURES CREDIT. (1) ALLOWANCE OF CREDIT. FOR EACH TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOU- SAND EIGHTEEN THERE SHALL BE ALLOWED AS A CREDIT, TO BE COMPUTED AS PROVIDED IN PARAGRAPH THREE OF THIS SUBDIVISION, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR QUALIFIED ALTERNATE GENERATED POWER SOURCE EQUIPMENT EXPENDITURES AT A MOTOR FUEL TERMINAL FACILITY, WHOLESALER OR MOTOR FUEL RETAIL OUTLET LOCATED IN THE STATE; PROVIDED, HOWEVER, THAT THE TAXPAYER SHALL NOT CLAIM MORE THAN ONE CREDIT FOR ANY ONE FACILITY. (2) DEFINITIONS. FOR THE 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 THE GENERAL BUSINESS LAW; (B) "WHOLESALER" AS DEFINED IN PARAGRAPH (L) OF SUBDIVISION ONE OF SECTION THREE HUNDRED NINETY-NINE-EE OF THE GENERAL BUSINESS LAW; (C) "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; (D) "QUALIFIED ALTERNATE GENERATED POWER SOURCE EQUIPMENT EXPENDI- TURES" SHALL MEAN: (I) COSTS INCURRED BY A MOTOR FUEL TERMINAL FACILITY,
WHOLESALER OR MOTOR FUEL RETAIL OUTLET IN THE STATE ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN ASSOCIATED WITH THE PURCHASE AND INSTALLATION OF AN ALTERNATE GENERATED POWER SOURCE THAT IS CAPABLE OF OPERATING ALL DISTRIBUTION LOADING RACKS, FUEL PUMPS, DISPENSING EQUIPMENT, LIFE SAFETY SYSTEMS AND PAYMENT ACCEPTANCE SYSTEMS, AS APPLICABLE, FOR A MINIMUM OF SEVENTY-TWO HOURS; OR (II) COSTS INCURRED BY A MOTOR FUEL RETAIL OUTLET IN THE STATE ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN FOR MATERIALS AND LABOR ASSOCIATED WITH THE INSTALLA- TION OF APPROPRIATE WIRING, INCLUDING A TRANSFER SWITCH, NECESSARY FOR THE OPERATION OF AN ALTERNATE GENERATED POWER SOURCE THAT IS CAPABLE OF OPERATING ALL FUEL PUMPS, DISPENSING EQUIPMENT, LIFE SAFETY SYSTEMS AND PAYMENT ACCEPTANCE SYSTEMS FOR A MINIMUM OF SEVENTY-TWO HOURS; (III) INSTALLATION OF APPROPRIATE WIRING AND TRANSFER SWITCHES SHALL BE PERFORMED BY A CERTIFIED ELECTRICAL CONTRACTOR AND CERTIFIED AS OPER- ATIONAL BY THE LOCAL BUILDING INSPECTOR; (IV) SUCH QUALIFIED EXPENDITURES SHALL NOT INCLUDE INTEREST OR OTHER FINANCE CHARGES; (V) THE AMOUNT OF ANY FEDERAL, STATE OR LOCAL GRANT RECEIVED BY THE TAXPAYER, WHICH IS USED FOR QUALIFIED ALTERNATE GENERATED POWER SOURCE EQUIPMENT EXPENDITURES SHALL NOT BE INCLUDED IN THE AMOUNT OF SUCH QUAL- IFIED EXPENDITURES. (3) AMOUNT OF CREDIT. THE AMOUNT OF CREDIT SHALL EQUAL FIFTY PERCENT OF QUALIFIED ALTERNATE GENERATED POWER SOURCE EQUIPMENT EXPENDITURES. SUCH CREDIT AMOUNT SHALL NOT EXCEED FIFTEEN THOUSAND DOLLARS FOR QUALI- FIED ALTERNATE GENERATED POWER SOURCE EQUIPMENT EXPENDITURES AS PROVIDED IN CLAUSE (I) OF SUBPARAGRAPH (D) OF PARAGRAPH TWO OF THIS SUBDIVISION, OR FIVE THOUSAND DOLLARS FOR QUALIFIED ALTERNATE GENERATED POWER SOURCE EQUIPMENT EXPENDITURES AS PROVIDED IN CLAUSE (II) OF SUBPARAGRAPH (D) OF PARAGRAPH TWO OF THIS SUBDIVISION. (4) CREDIT RECAPTURE. IF AN ALTERNATE GENERATED POWER SOURCE FOR WHICH A CREDIT IS ALLOWED PURSUANT TO THIS SUBDIVISION 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 SUBDIVISION 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) CARRYOVER. 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 606 of the tax law is amended by adding a new subsection (u) to read as follows: (U) ALTERNATE GENERATED POWER SOURCE EQUIPMENT EXPENDITURES CREDIT. (1) ALLOWANCE OF CREDIT. FOR EACH TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOU- SAND EIGHTEEN THERE SHALL BE ALLOWED AS A CREDIT, TO BE COMPUTED AS PROVIDED IN PARAGRAPH THREE OF THIS SECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR QUALIFIED ALTERNATE GENERATED POWER SOURCE EQUIPMENT EXPENDITURES AT A MOTOR FUEL TERMINAL FACILITY, WHOLESALER OR MOTOR FUEL RETAIL OUTLET LOCATED IN THE STATE; PROVIDED, HOWEVER, THAT THE TAXPAYER SHALL NOT CLAIM MORE THAN ONE CREDIT FOR ANY ONE FACILITY.
(2) DEFINITIONS. FOR THE 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 THE GENERAL BUSINESS LAW; (B) "WHOLESALER" AS DEFINED IN PARAGRAPH (L) OF SUBDIVISION ONE OF SECTION THREE HUNDRED NINETY-NINE-EE OF THE GENERAL BUSINESS LAW; (C) "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; (D) "QUALIFIED ALTERNATE GENERATED POWER SOURCE EQUIPMENT EXPENDI- TURES" SHALL MEAN: (I) COSTS INCURRED BY A MOTOR FUEL TERMINAL FACILITY, WHOLESALER OR MOTOR FUEL RETAIL OUTLET IN THE STATE ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN ASSOCIATED WITH THE PURCHASE AND INSTALLATION OF AN ALTERNATE GENERATED POWER SOURCE THAT IS CAPABLE OF OPERATING ALL DISTRIBUTION LOADING RACKS, FUEL PUMPS, DISPENSING EQUIPMENT, LIFE SAFETY SYSTEMS AND PAYMENT ACCEPTANCE SYSTEMS, AS APPLICABLE, FOR A MINIMUM OF SEVENTY-TWO HOURS; (II) COSTS INCURRED BY A MOTOR FUEL RETAIL OUTLET IN THE STATE ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN FOR MATERIALS AND LABOR ASSOCIATED WITH THE INSTALLA- TION OF APPROPRIATE WIRING, INCLUDING A TRANSFER SWITCH, NECESSARY FOR THE OPERATION OF AN ALTERNATE GENERATED POWER SOURCE THAT IS CAPABLE OF OPERATING ALL FUEL PUMPS, DISPENSING EQUIPMENT, LIFE SAFETY SYSTEMS AND PAYMENT ACCEPTANCE SYSTEMS FOR A MINIMUM OF SEVENTY-TWO HOURS; (III) INSTALLATION OF APPROPRIATE WIRING AND TRANSFER SWITCHES SHALL BE PERFORMED BY A CERTIFIED ELECTRICAL CONTRACTOR AND CERTIFIED AS OPER- ATIONAL BY THE LOCAL BUILDING INSPECTOR; (IV) SUCH QUALIFIED EXPENDITURES SHALL NOT INCLUDE INTEREST OR OTHER FINANCE CHARGES; (V) THE AMOUNT OF ANY FEDERAL, STATE OR LOCAL GRANT RECEIVED BY THE TAXPAYER, WHICH IS USED FOR QUALIFIED ALTERNATE GENERATED POWER SOURCE EQUIPMENT EXPENDITURES SHALL NOT BE INCLUDED IN THE AMOUNT OF SUCH QUAL- IFIED EXPENDITURES. (3) AMOUNT OF CREDIT. THE AMOUNT OF CREDIT SHALL EQUAL FIFTY PERCENT OF QUALIFIED ALTERNATE GENERATED POWER SOURCE EQUIPMENT EXPENDITURES. SUCH CREDIT AMOUNT SHALL NOT EXCEED FIFTEEN THOUSAND DOLLARS FOR QUALI- FIED ALTERNATE GENERATED POWER SOURCE EQUIPMENT EXPENDITURES AS PROVIDED IN CLAUSE (I) OF SUBPARAGRAPH (D) OF PARAGRAPH TWO OF THIS SUBSECTION, OR FIVE THOUSAND DOLLARS FOR QUALIFIED ALTERNATE GENERATED POWER SOURCE EQUIPMENT EXPENDITURES AS PROVIDED IN CLAUSE (II) OF SUBPARAGRAPH (D) OF PARAGRAPH TWO OF THIS SUBSECTION. (4) CREDIT RECAPTURE. IF AN ALTERNATE GENERATED POWER SOURCE FOR WHICH A CREDIT IS ALLOWED PURSUANT TO THIS SUBSECTION 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 SUBSECTION 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) CARRYOVER. 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. 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 POWER AMOUNT OF CREDIT UNDER SOURCE EQUIPMENT EXPENDITURES SUBDIVISION FORTY-SIX OF CREDIT UNDER SUBSECTION (U) SECTION TWO HUNDRED TEN S 6. This act shall take effect immediately; provided that the provisions of sections two, three, four and five of this act shall expire and be deemed repealed January 1, 2018.

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