Extends the application of the clean heating fuel credit until January 1, 2017.
Ayes (59): Adams, Addabbo, Alesi, Avella, Ball, Bonacic, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Duane, Espaillat, Farley, Flanagan, Fuschillo, Gallivan, Gianaris, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Huntley, Johnson, Kennedy, Klein, Krueger, Lanza, LaValle, Libous, Little, Marcellino, Martins, Maziarz, McDonald, Nozzolio, O'Mara, Oppenheimer, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Saland, Sampson, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousin, Valesky, Young, Zeldin
Excused (2): Larkin, Montgomery
TITLE OF BILL: An act to amend the tax law, in relation to the clean heating fuel personal income tax credit; and to amend chapter 35 of the laws of 2006 amending the tax law relating to a clean heating fuel credit, in relation to extending the applicability of such credit until January 1, 2017
PURPOSE OR GENERAL IDEA OF BILL: To extend the personal income tax clean heating fuel credit until January 1, 2017 and to make conforming amendments to Chapter 35 of the Laws of 2006. Chapter 591 of the laws of 2011 already extends this provision until 2017 for corporate owners of residential developments. As referenced in the Bill Approval memo (No 11 Chapter 591) this bill represents a three-way agreement to a chapter amendment aimed at allowing individual homeowners to also claim this credit for five more years.
SUMMARY OF SPECIFIC PROVISIONS: Section 1 amends tax law section 606(mm)(1) to extend the effective date for the clean heating fuel credit. The credit will be affected for taxable years beginning before January 1, 2017.
Section 2 amends Chapter 35 of the laws of 2006, as amended by section three of part AAA-1 of chapter 57 of the laws of 2008 by extending the taxable years for which this credit may be claimed. The date has been extended to include all taxable years beginning before January 1, 2017.
JUSTIFICATION: Governor Pataki first signed this tax credit into law in 2006, in order to promote the use of clean heating fuel, in order to improve air quality, protect our environment and encourage domestic sources of fuel. This credit was extended in 2009, and thousands of New Yorkers took advantage of the credit by burning cleaner, more renewable and less carbon laden heating oil.
During the intervening period more and more consumers have become aware of biodiesel and its environmental and clean air benefits. As consumers replace their traditional heating oil with greener biodiesel blends, it is vitally important that this tax credit be extended.
This tax credit expired for taxable years beginning after December 31, 2011, which means that customers already taking advantage of it will lose this benefit and return to less environmentally friendly sources of fuel. In order to protect these consumers, and to promote clean air and a safer environment, the clean heating fuel tax credit must be extended.
PRIOR LEGISLATIVE HISTORY: 2011: S.5349/A.7793 enacted as Chapter 591 of the laws of 2011 2008: S.6807C/A.9804C enacted as Part AAA-1 of Chapter 57 of
the Laws of 2008 2006: S.7909/A.11331 enacted as Chapter 35 of the Laws of 2006
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 6039 IN SENATE (PREFILED) January 4, 2012 ___________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 the clean heating fuel personal income tax credit; and to amend chapter 35 of the laws of 2006 amending the tax law relating to a clean heating fuel credit, in relation to extending the applicability of such credit until January 1, 2017 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph 1 of subsection (mm) of section 606 of the tax law, as amended by section 2 of part AAA-1 of chapter 57 of the laws of 2008, is amended to read as follows: (1) A taxpayer shall be allowed a credit against the tax imposed by this article. Such credit, to be computed as hereinafter provided, shall be allowed for bioheat, used for space heating or hot water production for residential purposes within this state and purchased on or after July first, two thousand six and before July first, two thousand seven and on or after January first, two thousand eight and before January first, two thousand
[twelve]SEVENTEEN. Such credit shall be $0.01 per percent of biodiesel per gallon of bioheat, not to exceed twenty cents per gallon, purchased by such taxpayer. S 2. Section 4 of part D of chapter 35 of the laws of 2006 amending the tax law relating to a clean heating fuel credit, as amended by section 3 of part AAA-1 of chapter 57 of the laws of 2008, is amended to read as follows: S 4. This act shall take effect immediately and shall apply to taxable years beginning after December 31, 2005 and before January 1, 2017; provided, however that the IMB credit for energy taxes under subsection (t-1) and the state film production credit under subsection (gg) and the empire state commercial production credit under subsection (jj) of section 606 of the tax law contained in section three of this act shall expire on the same date as provided in subdivision (a) ofEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD13434-01-1 S. 6039 2
section 49 of part Y of chapter 63 of the laws of 2000, as amended and section 9 of part P of chapter 60 of the laws of 2004, as amended, and section 10 of part V of a chapter of the laws of 2006 amending the tax law relating to the empire state commercial production tax credit,
[as proposed in legislative bill numbers S.6460-C and A.9560-B,]as amended respectively. S 3. This act shall take effect immediately.