Modifies the biofuel production credit from ethanol to renewable diesel and renewable hydrocarbon diesel.
This bill amends New York’s tax law to revise the biofuel production credit. It changes the definition of eligible biofuel so that the credit would apply to renewable diesel and renewable hydrocarbon diesel, while removing ethanol from the definition. The bill also updates the credit’s effective dates and sunset provisions so that the credit would apply to taxable years beginning on or after the bill’s effective date and before January 1, 2027.
Under the bill, eligible taxpayers subject to New York tax under Articles 9, 9-A, or 22 could continue to claim a production credit of 15 cents per gallon for biofuel produced at a qualifying biofuel plant after the first 40,000 gallons per year, subject to a $2.5 million annual cap per taxpayer and a limit of four consecutive taxable years per plant. The bill also makes conforming changes to the corporate franchise tax, bank tax, and personal income tax provisions that reference the biofuel production credit, and it preserves existing rules on minimum tax limitations, overpayment treatment, and no-interest refunds.
The bill’s practical impact is to redirect the state’s biofuel incentive away from ethanol and toward renewable diesel and renewable hydrocarbon diesel, which are produced from nonpetroleum renewable sources such as vegetable oils and animal fats. This would affect biofuel producers, taxpayers claiming the credit, and potentially investors and facilities in the renewable fuels sector by changing which fuels qualify for the incentive under New York law.
There is no recorded committee transcript or vote history in the provided materials, so no formal debate or roll-call sentiment is available. Based on the bill text and caption, the measure appears to be a targeted policy update intended to modernize the credit and support newer renewable fuel technologies. Because no opposition or amendments are shown in the record provided, there is no identifiable point of contention from the available context, though the main policy issue is the shift in subsidy eligibility from ethanol to renewable diesel and renewable hydrocarbon diesel.
The bill amends sections 28, 187-c, 210-B, and 606 of the Tax Law to redefine and extend the biofuel production credit for qualifying renewable fuels. It removes ethanol from the statutory definition of biofuel and adds renewable diesel and renewable hydrocarbon diesel, while keeping the existing per-gallon credit, annual cap, and plant-level limitations. The bill also updates the credit’s sunset date to taxable years beginning before January 1, 2027, and applies prospectively to taxable years beginning on or after the effective date.
No committee discussion or vote record was provided, so there is no direct evidence of support or opposition from legislators. The bill’s caption and text suggest a generally pro-renewable-energy, industry-supportive purpose, aimed at updating the credit to reflect current fuel technologies. In the absence of recorded debate, the available context indicates a technical policy adjustment rather than a highly contentious measure.
The principal policy change is the replacement of ethanol with renewable diesel and renewable hydrocarbon diesel as eligible fuels, which could draw differing views from ethanol producers, renewable diesel producers, and stakeholders in the broader biofuels market. Another possible point of contention is the continuation of a tax expenditure through 2027, including the $2.5 million per-taxpayer annual cap and four-year plant limit. However, no specific objections, amendments, or recorded votes are available in the provided materials.