New York A 7127: Relates to production credit for production of biomethane

Bill Text

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A07127 Summary:

BILL NOA07127 

&nbsp

SAME ASSAME AS S01547

&nbsp

SPONSORWalker (MS)

&nbsp

COSPNSR

&nbsp

MLTSPNSRSimon

&nbsp

Ren §28 to be §38-a, amd §§38-a, 187-c, 606 & 210-B, Tax L

&nbsp

Relates to biofuel production credit for production of biomethane, a biodiesel fuel.

Go to top A07127 Actions:

BILL NOA07127 

&nbsp

03/20/2025referred to ways and means

01/07/2026referred to ways and means

Go to topA07127 Committee&nbspVotes:

Go to topA07127 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA07127 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 7127

 2025-2026 Regular Sessions

 IN ASSEMBLY

 March 20, 2025
 ___________

 Introduced by M. of A. WALKER -- Multi-Sponsored by -- M. of A. SIMON --
 read once and referred to the Committee on Ways and Means

 AN ACT to amend the tax law, in relation to biofuel production credit
 for production of biomethane

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Section 28 of the tax law, as added by section 1 of part X
 2 of chapter 62 of the laws of 2006, is renumbered section 38-a.
 3 § 2. Subdivisions (a) and (b) of section 38-a of the tax law, subdivi-
 4 sion (a) as amended by section 1 of part K of chapter 59 of the laws of
 5 2012, subdivision (b) as added by section 1 of part X of chapter 62 of
 6 the laws of 2006, such section as renumbered by section one of this act,
 7 are amended to read as follows:
 8 (a) General. A taxpayer subject to tax under article nine, nine-A or
 9 twenty-two of this chapter shall be allowed a credit against such tax
 10 pursuant to the provisions referenced in subdivision (d) of this
 11 section. The credit (or pro rata share of earned credit in the case of a
 12 partnership) for each gallon of biofuel produced at a biofuel plant on
 13 or after January first, two thousand six shall equal fifteen cents per
 14 gallon or twenty-five cents per gallon for production of biomethane
 15 after the production of the first forty thousand gallons per year
 16 presented to market. The credit under this section shall be capped at
 17 two and one-half million dollars per taxpayer per taxable year for up to
 18 no more than four consecutive taxable years per biofuel plant. If the
 19 taxpayer is a partner in a partnership or shareholder of a New York S
 20 corporation, then the cap imposed by the preceding sentence shall be
 21 applied at the entity level, so that the aggregate credit allowed to all
 22 the partners or shareholders of each such entity in the taxable year
 23 does not exceed two and one-half million dollars. The tax credit allowed
 24 pursuant to this section shall apply to taxable years beginning before
 25 January first, two thousand twenty.

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD04525-01-5

 A. 7127 2

 1 (b) Definitions. For the purpose of this section, the following terms
 2 shall have the following meanings:
 3 (1) "Biofuel" means a fuel which includes biodiesel [and], ethanol or
 4 biomethane.
 5 (2) The term "biodiesel" shall mean a fuel comprised exclusively of
 6 mono-alkyl esters of long chain fatty acids derived from vegetable oils
 7 or animal fats, designated B100, which meets the specifications of Amer-
 8 ican Society of Testing and Materials designation D 6751-02.
 9 (3) The term "ethanol" shall mean ethyl alcohol manufactured in the
 10 United States and its territories and sold (i) for fuel use and which
 11 has been rendered unfit for beverage use in a manner and which is
 12 produced at a facility approved by the federal bureau of alcohol, tobac-
 13 co and firearms for the production of ethanol for fuel, or (ii) as dena-
 14 tured ethanol used by blenders and refiners which has been rendered
 15 unfit for beverage use. The term "biofuel" may also include any other
 16 standard approved by the New York state energy and research development
 17 authority.
 18 [(2)] (4) The term "biomethane" shall mean biogases that are emitted
 19 as organic wastes that break down in airless environments. Biomethane is
 20 produced from a variety of biomass and/or biogas sources, including
 21 landfill gas, solid