<STYLE><!--U {color: Green}S {color: RED} I {color: DARKBLUE; background-color:yellow} P.brk {page-break-before:always}--></STYLE> <BASEFONT SIZE=3> <PRE WIDTH="99"> <FONT SIZE=5><B> STATE OF NEW YORK</B></FONT> ________________________________________________________________________ 7308--A 2025-2026 Regular Sessions <FONT SIZE=5><B> IN ASSEMBLY</B></FONT> March 25, 2025 ___________ Introduced by M. of A. BARRETT, HYNDMAN, BURDICK, LUPARDO, TAPIA, MAGNARELLI, BURROUGHS, STERN, LUCAS, KASSAY, SHIMSKY, MEEKS, LEVEN- BERG, CRUZ, HEVESI -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the energy law and the tax law, in relation to estab- lishing a sustainable aviation fuel tax credit in New York state <B><U>The People of the State of New York, represented in Senate and Assem-</U></B> <B><U>bly, do enact as follows:</U></B> 1 Section 1. The energy law is amended by adding a new section 5-112 to 2 read as follows: 3 <B><U>§ 5-112. Sustainable aviation fuel tax credit. 1. Except as otherwise</U></B> 4 <B><U>provided under this section, a sustainable aviation fuel producer may</U></B> 5 <B><U>claim a credit against the tax imposed by section three hundred one-e of</U></B> 6 <B><U>the tax law in an amount equal to one dollar per gallon of sustainable</U></B> 7 <B><U>aviation fuel purchased in this state during the tax year by a business</U></B> 8 <B><U>for use as fuel for flights departing in this state. The amount of cred-</U></B> 9 <B><U>it per gallon allowed under this section increases by two cents for each</U></B> 10 <B><U>additional one percent reduction in carbon dioxide equivalent emissions</U></B> 11 <B><U>above fifty percent but shall not exceed two dollars per gallon.</U></B> 12 <B><U>2. A taxpayer shall not claim a credit under this section unless the</U></B> 13 <B><U>office issued a certificate to the taxpayer. The taxpayer shall attach</U></B> 14 <B><U>the certificate to their annual return on which a credit under this</U></B> 15 <B><U>section is claimed. The certificate required under this subdivision</U></B> 16 <B><U>shall state all of the following:</U></B> 17 <B><U>a. The name, business address, and tax identification number of the</U></B> 18 <B><U>taxpayer.</U></B> 19 <B><U>b. The total amount of gallons of sustainable aviation fuel that is</U></B> 20 <B><U>purchased in this state during the tax year from the taxpayer and to be</U></B> 21 <B><U>used as fuel in an aircraft departing from an airport in this state.</U></B> EXPLANATION--Matter in <B><U>italics</U></B> (underscored) is new; matter in brackets [<B><S> </S></B>] is old law to be omitted. LBD08509-06-5 </PRE><P CLASS="brk"><PRE WIDTH="99"> A. 7308--A 2 1 <B><U>c. The number of gallons of sustainable aviation fuel for which the</U></B> 2 <B><U>percentage reduction in carbon dioxide equivalent emissions is above</U></B> 3 <B><U>fifty percent and that percentage amount.</U></B> 4 <B><U>3. If the amount of the credit allowed under this section exceeds the</U></B> 5 <B><U>taxpayer's tax liability for the tax year, that portion that exceeds the</U></B> 6 <B><U>tax liability for the tax year shall be refunded.</U></B> 7 <B><U>4. As used in this section, the following terms shall have the follow-</U></B> 8 <B><U>ing meanings:</U></B> 9 <B><U>a. "Aviation fuel" means kero-jet fuel and gasoline as that term is</U></B> 10 <B><U>described in subdivision (a) of section three hundred one-b of the tax</U></B> 11 <B><U>law.</U></B> 12 <B><U>b. "Biomass" means any organic matter that is available on a renewable</U></B> 13 <B><U>or recurring basis, including agricultural crops, wood and wood waste</U></B> 14 <B><U>and residues, plants including aquatic plants, grasses, residues,</U></B> 15 <B><U>fibers, animal waste, and the organic portion of solid wastes.</U></B> 16 <B><U>c. "Carbon dioxide equivalent" shall have the same meaning as subdivi-</U></B> 17 <B><U>sion two of section 75-0101 of the environmental conservation law.</U></B> 18 <B><U>d. "Carbon intensity" means the quantity of life-cycle greenhouse gas</U></B> 19 <B><U>emission, per unit of fuel energy, expressed in grams of carbon dioxide</U></B> 20 <B><U>equivalent per megajoule.</U></B> 21 <B><U>e. "Office" means the New York state energy research and development</U></B> 22 <B><U>authority established pursuant to article eight of the public authori-</U></B> 23 <B><U>ties law.</U></B> 24 <B><U>f. "Commissioner" means the president of the New York state energy</U></B> 25 <B><U>research and development authority.</U></B> 26 <B><U>g. "Sustainable aviation fuel" means liquid fuel that:</U></B> 27 <B><U>(i) consists of synthesized hydrocarbons and meets the requirements</U></B> 28 <B><U>of:</U></B> 29 <B><U>(A) the American Society for Testing and Materials International Stan-</U></B> 30 <B><U>dard D7566; or</U></B> 31 <B><U>(B) Standard D1655;</U></B> 32 <B><U>(ii) is derived from biomass resources, waste streams, renewable or</U></B> 33 <B><U>zero-carbon energy sources, or gaseous carbon oxides;</U></B> 34 <B><U>(iii) is not derived from any palm or petroleum derivatives; and</U></B> 35 <B><U>(iv) the fuel production pathway for the sustainable aviation fuel</U></B> 36 <B><U>achieves at least a fifty percent lifecycle greenhouse gas emissions</U></B> 37 <B><U>reduction in comparison with petroleum-based jet fuel, as determined by</U></B> 38 <B><U>a test that shows either:</U></B> 39 <B><U>(A) that the fuel production pathway achieves at least a fifty percent</U></B> 40 <B><U>reduction of the aggregate attributional core lifecycle emissions and</U></B> 41 <B><U>the positive induced land use change values under the lifecycle method-</U></B> 42 <B><U>ology for sustainable aviation fuels adopted by the International Civil</U></B> 43 <B><U>Aviation Organization with the agreement of the United States; or</U></B> 44 <B><U>(B) that the fuel production pathway achieves at least a fifty percent</U></B> 45 <B><U>reduction of the aggregate attributional core lifecycle greenhouse gas</U></B> 46 <B><U>emissions values utilizing the most recent version of Argonne National</U></B> 47 <B><U>Laboratory's GREET model, inclusive of but not limited to climate smart</U></B> 48 <B><U>agricultural practices, on-site renewables and carbon capture and</U></B> 49 <B><U>sequestration.</U></B> 50 <B><U>5. The total amount of tax credits listed on certificates of tax cred-</U></B> 51 <B><U>it issued by the commissioner pursuant to this article may not exceed</U></B> 52 <B><U>thirty million dollars for each year the credit is available.</U></B> 53 <B><U>6. Each aviation fuel producer claiming such credit shall report to</U></B> 54 <B><U>the commissioner of the department of taxation and finance on a monthly</U></B> 55 <B><U>basis the amount of sustainable aviation fuel to be sold within the</U></B> </PRE><P CLASS="brk"><PRE WIDTH="99"> A. 7308--A 3 1 <B><U>state. The commissioner of the department of taxation and finance shall</U></B> 2 <B><U>make all such reports publicly available on such department's website.</U></B> 3 <B><U>7. The department of taxation and finance shall determine a fair and</U></B> 4 <B><U>equitable maximum distribution of such credit per eligible entity.</U></B> 5 § 2. The tax law is amended by adding a new section 50 to read as 6 follows: 7 <B><U>§ 50. Sustainable aviation fuel tax credit. (a) Allowance of credit.</U></B> 8 <B><U>For taxable years beginning on or after January first, two thousand</U></B> 9 <B><U>twenty-five, a taxpayer subject to tax pursuant to articles nine,</U></B> 10 <B><U>nine-A, thirteen-A, or twenty-two of this chapter shall be allowed a</U></B> 11 <B><U>credit against such tax pursuant to the provisions referenced in subdi-</U></B> 12 <B><U>vision (f) of this section. The amount of the credit shall be equal to</U></B> 13 <B><U>the amount determined pursuant to section 5-112 of the energy law. No</U></B> 14 <B><U>cost or expense paid or incurred by the taxpayer that is included as</U></B> 15 <B><U>part of the calculation of such credit shall be the basis of any other</U></B> 16 <B><U>tax credit allowed under this chapter.</U></B> 17 <B><U>(b) Eligibility criteria. To be eligible for the aviation fuel tax</U></B> 18 <B><U>credit, the taxpayer shall have been issued a certificate of tax credit</U></B> 19 <B><U>by the New York state energy research and development authority pursuant</U></B> 20 <B><U>to section 5-112 of the energy law, which certificate shall set forth</U></B> 21 <B><U>the amount of the credit that may be claimed for the taxable year. The</U></B> 22 <B><U>taxpayer shall be allowed to claim only the amount listed on the certif-</U></B> 23 <B><U>icate of tax credit for the taxable year. A taxpayer that is a partner</U></B> 24 <B><U>in a partnership, member of a limited liability company, or shareholder</U></B> 25 <B><U>in a subchapter S corporation that has received a certificate of tax</U></B> 26 <B><U>credit shall be allowed its pro rata share of the credit earned by the</U></B> 27 <B><U>partnership, limited liability company, or subchapter S corporation.</U></B> 28 <B><U>(c) Tax return requirement. The taxpayer shall be required to attach</U></B> 29 <B><U>to its tax return, in the form prescribed by the commissioner, proof of</U></B> 30 <B><U>receipt of its certificate of tax credit issued by the New York state</U></B> 31 <B><U>energy research and development authority.</U></B> 32 <B><U>(d) Information sharing. Notwithstanding any provision of this chap-</U></B> 33 <B><U>ter, employees of the division of criminal justice services and the</U></B> 34 <B><U>department shall be allowed and are directed to share and exchange:</U></B> 35 <B><U>(1) information derived from tax returns or reports that is relevant</U></B> 36 <B><U>to a taxpayer's eligibility to participate in the sustainable aviation</U></B> 37 <B><U>fuel tax credit program;</U></B> 38 <B><U>(2) information regarding the credit applied for, allowed, or claimed</U></B> 39 <B><U>pursuant to this section and taxpayers that are applying for the credit</U></B> 40 <B><U>or that are claiming such credit; and</U></B> 41 <B><U>(3) information contained in or derived from credit claim forms</U></B> 42 <B><U>submitted to the department and applications for admission into the</U></B> 43 <B><U>sustainable aviation fuel tax credit program. All information exchanged</U></B> 44 <B><U>between the department, the New York state energy research and develop-</U></B> 45 <B><U>ment authority and the department of environmental conservation shall</U></B> 46 <B><U>not be subject to disclosure or inspection under the state's freedom of</U></B> 47 <B><U>information law.</U></B> 48 <B><U>(e) Credit recapture. If a certificate of tax credit issued by the New</U></B> 49 <B><U>York state energy research and development authority is revoked by such</U></B> 50 <B><U>department, the amount of credit described in this section and claimed</U></B> 51 <B><U>by the taxpayer prior to such revocation shall be added back to tax in</U></B> 52 <B><U>the taxable year in which any such revocation becomes final. Post credit</U></B> 53 <B><U>issuance revocation shall only apply to the previous taxable year.</U></B> 54 <B><U>(f) Cross references. For application of the credit provided for in</U></B> 55 <B><U>this section, see the following provisions of this chapter:</U></B> 56 <B><U>(1) article 9: section 187-s;</U></B> </PRE><P CLASS="brk"><PRE WIDTH="99"> A. 7308--A 4 1 <B><U>(2) article 9-A: section 210-b, subdivision 61;</U></B> 2 <B><U>(3) article 22: section 606, subsection (www).</U></B> 3 § 3. The tax law is amended by adding a new section 187-s to read as 4 follows: 5 <B><U>§ 187-s. Sustainable aviation fuel tax credit. (a) Allowance of cred-</U></B> 6 <B><U>it. A taxpayer shall be allowed a credit, to be computed as provided in</U></B> 7 <B><U>section fifty of this chapter, against the tax imposed by this article.</U></B> 8 <B><U>(b) Application of credit. In no event shall the credit under this</U></B> 9 <B><U>section be allowed in an amount that will reduce the tax payable to less</U></B> 10 <B><U>than the applicable minimum tax fixed by section one hundred eighty-two</U></B> 11 <B><U>of this article. If, however, the amount of credit allowable under this</U></B> 12 <B><U>section for any taxable year reduces the tax to such amount, any amount</U></B> 13 <B><U>of credit not deductible in such taxable year shall be treated as an</U></B> 14 <B><U>overpayment of tax to be refunded in accordance with the provisions of</U></B> 15 <B><U>section one thousand eighty-six of this chapter. Provided, however, the</U></B> 16 <B><U>provisions of subsection (c) of section one thousand eighty-eight of</U></B> 17 <B><U>this chapter notwithstanding, no interest shall be paid thereon.</U></B> 18 § 4. Section 210-B of the tax law is amended by adding a new subdivi- 19 sion 61 to read as follows: 20 <B><U>61. Sustainable aviation fuel tax credit. (a) Allowance of credit. A</U></B> 21 <B><U>taxpayer shall be allowed a credit, to be computed as provided in</U></B> 22 <B><U>section fifty of this chapter, against the tax imposed by this article.</U></B> 23 <B><U>(b) Application of credit. The credit allowed under this subdivision</U></B> 24 <B><U>for any taxable year shall not reduce the tax due for such year to less</U></B> 25 <B><U>than the fixed dollar minimum amount prescribed in paragraph (d) of</U></B> 26 <B><U>subdivision one of section two hundred ten of this article. However, if</U></B> 27 <B><U>the amount of credits allowed under this subdivision for any taxable</U></B> 28 <B><U>year reduces the tax to such amount or if the taxpayer otherwise pays</U></B> 29 <B><U>tax based on the fixed dollar minimum amount, any amount of credit thus</U></B> 30 <B><U>not deductible in such taxable year shall be treated as an overpayment</U></B> 31 <B><U>of tax to be credited or refunded in accordance with the provisions of</U></B> 32 <B><U>section one thousand eighty-six of this chapter. Provided, however, the</U></B> 33 <B><U>provisions of subsection (c) of section one thousand eighty-eight of</U></B> 34 <B><U>this chapter notwithstanding, no interest shall be paid thereon.</U></B> 35 § 5. Section 606 of the tax law is amended by adding a new subsection 36 (www) to read as follows: 37 <B><U>(www) Sustainable aviation fuel tax credit. (1) Allowance of credit. A</U></B> 38 <B><U>taxpayer shall be allowed a credit, to be computed as provided in</U></B> 39 <B><U>section fifty of this chapter, against the tax imposed by this article.</U></B> 40 <B><U>(2) Application of credit. If the amount of the credit allowed under</U></B> 41 <B><U>this subsection for the taxable year exceeds the taxpayer's tax for such</U></B> 42 <B><U>year, the excess shall be treated as an overpayment of tax to be credit-</U></B> 43 <B><U>ed or refunded in accordance with the provisions of section six hundred</U></B> 44 <B><U>eighty-six of this article, provided, however, that no interest shall be</U></B> 45 <B><U>paid thereon.</U></B> 46 § 6. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 47 of the tax law is amended by adding a new clause (lii) to read as 48 follows: 49 <B><U>(lii) Sustainable aviation fuel </U></B> <B><U>Amount of credit under</U></B> 50 <B><U>tax credit under subsection </U></B> <B><U>subdivision sixty-one of</U></B> 51 <B><U>(www) </U></B> <B><U>section two hundred ten-B</U></B> 52 § 7. This act shall take effect immediately.