New York Senate Bill S05366

New York 2025-2026 Regular Session

• Introduced: 2/21/25
• Refer: 2/21/25
• Refer: 1/7/26

Caption

Provides a tax credit to corporations that purchase qualified green construction equipment equivalent to thirty percent of the total expenses incurred during the taxable year in purchasing such equipment.

Summary

S05366 would create a new corporate franchise tax credit under section 210-B of the Tax Law for taxpayers located in New York that purchase “qualified green construction equipment.” The credit would equal 30% of the total expenses incurred in the taxable year for eligible equipment, which the bill defines as heavy-duty construction and earthwork machinery, trucks, and related equipment that do not produce greenhouse gas emissions, use fossil fuels, or emit toxic chemicals. The bill also caps the statewide total of credits at $10 million per calendar year and directs the Tax Department commissioner to establish certification procedures and allocation rules. The credit would not be allowed to reduce tax liability below the minimum tax floor already set in the Tax Law, and it would apply to taxable years beginning on or after the bill’s effective date, which is immediate upon enactment.

Impact

If enacted, the bill would amend New York’s corporate tax law by adding a targeted incentive for businesses that invest in zero-emission or non-fossil-fuel construction equipment. It would affect corporations subject to article 9-A of the Tax Law, especially construction firms, contractors, and equipment purchasers, while also requiring the Department of Taxation and Finance to certify qualifying equipment and administer the annual statewide cap. The measure would create a new tax expenditure but would not eliminate existing minimum tax requirements.

Sentiment

There is limited recorded legislative history in the provided materials, and no committee transcript or vote data is available to show formal support or opposition. Based on the bill’s design, the measure appears intended to encourage cleaner construction practices and equipment modernization, suggesting an environmentally supportive policy goal. Because no votes or hearing remarks are included, the overall sentiment cannot be measured beyond the bill’s pro-environment framing and its targeted business tax incentive structure.

Contention

The main points of potential contention are likely to be the fiscal cost of the credit, the narrow definition of qualifying equipment, and the practical difficulty of certifying that equipment truly produces no greenhouse gas emissions, uses no fossil fuels, and emits no toxic chemicals. Some stakeholders may view the $10 million annual cap as too limited to meaningfully drive adoption, while others may see it as necessary to contain revenue loss. The bill’s benefits would likely be of greatest interest to construction companies and equipment manufacturers, while budget-focused policymakers may scrutinize the tax expenditure and administrative complexity.