STATE OF NEW YORK ________________________________________________________________________ 1229 2025-2026 Regular Sessions IN SENATE January 8, 2025 ___________ Introduced by Sen. MAY -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommuni- cations AN ACT to amend the energy law and the tax law, in relation to estab- lishing a sustainable aviation fuel tax credit; to amend the environ- mental conservation law, in relation to directing the climate action council to incorporate the use of sustainable aviation fuel in its updated scoping plan; and providing for the repeal of such provisions upon expiration thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The energy law is amended by adding a new section 5-129 to 2 read as follows: 3 § 5-129. Sustainable aviation fuel certification. 1. For the purposes 4 of this section, the following terms shall have the following meanings: 5 (a) "Applicable material" means (i) monoglycerides, diglycerides, and 6 triglycerides; (ii) free fatty acids; and (iii) fatty acid esters. 7 (b) "ASTM" means the American Society for Testing and Materials, which 8 is a private organization that utilizes committees of industry represen- 9 tatives and regulators to develop product quality standards and test 10 methods to be used by industries, regulatory agencies, and purchasing 11 agents. 12 (c) "Authority" means the New York state energy research and develop- 13 ment authority. 14 (d) "Aviation gasoline" means any gasoline that is used to produce or 15 generate power for propelling internal combustion engine aircraft, 16 including but not limited to, any gasoline that is: 17 (i) invoiced and billed by a producer, manufacturer, refiner, or blen- 18 der to a distributor or dealer, by a distributor to a dealer or consum- 19 er, or by a dealer to consumer, as "aviation gasoline" that meets spec- 20 ifications in ASTM specification D910-16 or any other ASTM specification EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03212-01-5
S. 1229 2 1 as gasoline appropriate for use in producing or generating power for 2 propelling internal combustion engine aircraft; or 3 (ii) sold to a dealer of aviation gasoline for dispensing directly 4 into the fuel tank of an aircraft. 5 (e) "Biomass" means any organic material other than: 6 (i) oil or natural gas, or any product thereof; or 7 (ii) coal (including lignite) or any product thereof. 8 (f) "Certified sustainable aviation fuel" means a sustainable aviation 9 fuel certified as such by the authority pursuant to the provisions of 10 this section. 11 (g) "Certified qualifying SAF mixture" means a qualifying SAF mixture 12 certified as such by the authority pursuant to the provisions of this 13 section. 14 (h) "Commissioner" means the president of the New York state energy 15 research and development authority. 16 (i) "Dealer" means any entity, except a distributor, engaged in the 17 business of buying and selling gasoline and/or other petroleum products 18 in this state. 19 (j) "Distributor" means any entity that (i) receives petroleum 20 products in New York state for storage and subsequent distribution by 21 tank car or tank truck or both; (ii) produces, manufactures, or refines 22 petroleum products in this state; or (iii) imports petroleum products 23 into this state via boat, barge, or pipeline for storage and subsequent 24 delivery at or further transportation from boat, barge, or pipeline 25 terminals in New York state. 26 (k) "Jet fuel" means blends of hydrocarbons derived from crude petro- 27 leum, natural gasoline, and synthetic hydrocarbons, intended for use in 28 aviation turbine engines, and that meet the specifications in ASTM spec- 29 ification D1655-12. 30 (l) "Lifecycle greenhouse gas emissions reduction percentage" means, 31 with respect to any sustainable aviation fuel, the percentage reduction 32 in lifecycle greenhouse gas emissions achieved by such fuel as compared 33 with petroleum-based jet fuel, as defined in accordance with: 34 (i) The most recent Carbon Offsetting and Reduction Scheme for Inter- 35 national Aviation which has been adopted by the International Civil 36 Aviation Organization with the agreement of the United States; or 37 (ii) Any similar methodology which satisfies the criteria under 38 section 211(o)(1)(H) of the Clean Air Act (42 U.S.C. 7545(o)(1)(H)), as 39 in effect on the effective date of this section. 40 (m) "Qualifying SAF mixture" means a sustainable aviation fuel, where 41 the biomass used as feedstock in the production of such sustainable 42 aviation fuel is derived from domestically grown corn and/or soybean in 43 a minimum amount as determined by the authority. 44 (n) "Sustainable aviation fuel" or "SAF" means liquid fuel, the 45 portion of which is not kerosene, which: 46 (i) meets the requirements of: 47 (A) ASTM International Standard D7566; or 48 (B) The Fischer Tropsch provisions of ASTM International Standard 49 D1655, Annex A1; 50 (ii) is (1) not derived from co-processing an applicable material, or 51 materials derived from an applicable material; and (2) derived with a 52 feedstock which is biomass; 53 (iii) is not derived from palm fatty acid distillates or petroleum; 54 and
S. 1229 3 1 (iv) has been certified as having a lifecycle greenhouse gas emissions 2 reduction percentage of at least fifty percent under paragraph (c) of 3 subdivision three of this section. 4 (o) "SAF producer" means an entity engaged in the business of produc- 5 ing sustainable aviation fuel and/or blending sustainable aviation fuel 6 with aviation gasoline or jet fuel. 7 2. The commissioner shall develop a method by which SAF producers may 8 apply to the authority to have certain sustainable aviation fuels 9 produced by such SAF producers certified as certified sustainable 10 aviation fuel and/or certified qualifying SAF mixtures for the purposes 11 of receiving the sustainable aviation fuel credit under section fifty of 12 the tax law. The commissioner shall determine any evidence that shall be 13 required to be submitted to the authority in support of such applica- 14 tions. 15 3. To be certified under this section as a certified sustainable 16 aviation fuel, a sustainable aviation fuel shall be: 17 (a) produced in New York state or blended with aviation gasoline or 18 jet fuel in New York state; 19 (b) sold in New York state to a purchaser who certifies that the 20 sustainable aviation fuel is for use as fuel in an aircraft departing 21 from an airport in New York state; and 22 (c) certified by the authority as having a lifecycle greenhouse gas 23 emissions reduction percentage of at least fifty percent. 24 4. (a) A SAF producer seeking certification of sustainable aviation 25 fuel and/or a qualifying SAF mixture under this section shall submit an 26 application under subdivision two of this section within one month of 27 the close of its taxable year for all such sustainable aviation fuel 28 and/or qualifying SAF mixtures for which such SAF producer is seeking 29 certification. 30 (b) Within thirty days of receiving an application for certification 31 of sustainable aviation fuel and/or qualifying SAF mixtures under this 32 section, the authority shall: 33 (i) issue a certification for such sustainable aviation fuel and/or 34 qualifying SAF mixture; 35 (ii) request additional information from the SAF producer; or 36 (iii) reject such application for certification. 37 (c) Where the authority requests additional information from a SAF 38 producer under subparagraph (ii) of paragraph (b) of this subdivision, 39 the authority shall issue certification or reject the application within 40 thirty days of receiving such additional information. Where such SAF 41 producer fails to submit such additional information within thirty days 42 of such request, such application for certification shall be deemed 43 rejected. 44 5. (a) A certification issued under this section shall include (i) the 45 fiscal year for which such certification is issued; (ii) the amount of 46 credit for which the SAF producer is eligible under section fifty of the 47 tax law pursuant to such certification; and (iii) the taxable year for 48 which the SAF producer may claim the tax credit under section fifty of 49 the tax law. 50 (b) A certification for a sustainable aviation fuel issued under this 51 section shall be applicable to either blending or producing such 52 sustainable aviation fuel, but shall not entitle the SAF producer to 53 separate credits under section fifty of the tax law for both blending 54 and producing the same sustainable aviation fuel.
S. 1229 4 1 6. The commissioner is hereby authorized to promulgate any rules 2 and/or regulations necessary to effectuate the provisions of this 3 section. 4 § 2. The tax law is amended by adding a new section 50 to read as 5 follows: 6 § 50. Sustainable aviation fuel credit. (a) Allowance of credit. A 7 taxpayer subject to tax under article nine, nine-a, or twenty-two of 8 this chapter shall be allowed a credit against such tax pursuant to the 9 provisions referenced in subdivision (d) of this section. The credit (or 10 pro rata share of earned credit in the case of a partnership) for each 11 gallon of certified sustainable aviation fuel produced at a sustainable 12 aviation fuel plant on or after January first, two thousand twenty-seven 13 shall equal one dollar and twenty-five cents per gallon of certified 14 sustainable aviation fuel; provided, however, that if such certified 15 sustainable aviation fuel is a certified qualifying SAF mixture, such 16 credit (or pro rata share of earned credit in the case of a partnership) 17 for each gallon of such certified sustainable aviation fuel produced at 18 a sustainable aviation fuel plant on or after January first, two thou- 19 sand twenty-seven shall equal one dollar and fifty cents per gallon. 20 The credit under this section shall be capped at two million four 21 hundred thousand dollars per taxpayer per taxable year. If the taxpayer 22 is a partner in a partnership or shareholder of a New York S corpo- 23 ration, then the cap imposed by the preceding sentence shall be applied 24 at the entity level, so that the aggregate credit allowed to all the 25 partners or shareholders of each such entity in the taxable year does 26 not exceed two million four hundred thousand dollars. The tax credit 27 allowed pursuant to this section shall apply to taxable years beginning 28 January first, two thousand twenty-seven through January first, two 29 thousand thirty-two, inclusive. 30 (b) Definitions. For the purposes of this section, the following terms 31 shall have the following meanings: 32 (1) "Certified sustainable aviation fuel" shall mean a sustainable 33 aviation fuel certified as such under section 5-129 of the energy law. 34 (2) "Certified qualifying SAF mixture" shall mean a qualifying SAF 35 mixture certified as such under section 5-129 of the energy law. 36 (3) "Qualifying SAF mixture" shall have the same meaning as defined by 37 section 5-129 of the energy law. 38 (4) (i) "Sustainable aviation fuel" or "SAF" shall have the same mean- 39 ing as defined by section 5-129 of the energy law. 40 (5) "Sustainable aviation fuel plant" means a commercial facility 41 located in New York state at which one or more sustainable aviation 42 fuels are produced. 43 (c) Reporting requirements. A taxpayer wishing to claim a credit under 44 this section shall submit to the commissioner (1) the certification 45 received for certified sustainable aviation fuel under section 5-129 of 46 the energy law; and (2) any other information deemed necessary by the 47 commissioner. 48 (d) Cross-references. For application of the credit provided for in 49 this section, see the following provisions of this chapter: 50 (1) article 9: section 187-s. 51 (2) article 9-A: section 210-B, subdivision 61. 52 (3) article 22: section 606, subsection (www). 53 § 3. The tax law is amended by adding a new section 187-s to read as 54 follows: 55 § 187-s. Sustainable aviation fuel credit. 1. Allowance of credit. A 56 taxpayer shall be allowed a credit to be computed as provided in section
S. 1229 5 1 fifty of this chapter against the tax imposed by this article. Provided, 2 however, that the amount of such credit allowed against the tax imposed 3 by section one hundred eighty-four of this article shall be the excess 4 of the amount of such credit over the amount of any credit allowed by 5 this section against the tax imposed by section one hundred eighty-three 6 of this article. 7 2. Application of credit. In no event shall the credit under this 8 section be allowed in an amount which will reduce the tax payable to 9 less than the applicable minimum tax fixed by section one hundred eight- 10 y-three of this article. If, however, the amount of the credit allowed 11 under this section for any taxable year reduces the tax to such amount, 12 the excess shall be treated as an overpayment of tax to be credited or 13 refunded in accordance with the provisions of section six hundred eight- 14 y-six of this chapter. Provided, however, the provisions of subsection 15 (c) of section one thousand eighty-eight of this chapter notwithstand- 16 ing, no interest shall be paid thereon. 17 § 4. Section 210-B of the tax law is amended by adding a new subdivi- 18 sion 61 to read as follows: 19 61. Sustainable aviation fuel credit. (a) Allowance of credit. A 20 taxpayer shall be allowed a credit, to be computed as provided in 21 section fifty of this chapter, against the taxes imposed by this arti- 22 cle. 23 (b) Application of credit. The credit allowed under this subdivision 24 for the taxable year shall not reduce the tax due for such year to less 25 than the amount prescribed in paragraph (d) of subdivision one of 26 section two hundred ten of this article. However, if the amount of cred- 27 it allowed under this subdivision for the taxable year reduces the tax 28 to such amount or if the taxpayer otherwise pays tax based on the fixed 29 dollar minimum amount, any amount of credit thus not deductible in such 30 taxable year shall be treated as an overpayment of tax to be credited or 31 refunded in accordance with the provisions of section one thousand 32 eighty-six of this chapter. Provided, however, the provisions of 33 subsection (c) of section one thousand eighty-eight of this chapter 34 notwithstanding, no interest shall be paid thereon. 35 § 5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 36 of the tax law is amended by adding a new clause (lii) to read as 37 follows: 38 (lii) Sustainable aviation fuel Amount of credit under 39 tax credit under subsection (www) subdivision sixty-one 40 of section two hundred ten-B 41 § 6. Section 606 of the tax law is amended by adding a new subsection 42 (www) to read as follows: 43 (www) Sustainable aviation fuel credit. (1) Allowance of credit. A 44 taxpayer shall be allowed a credit, to be computed as provided in 45 section fifty of this chapter, against the tax imposed by this article. 46 (2) Application of credit. If the amount of the credit allowed under 47 this subsection for the taxable year exceeds the taxpayer's tax for such 48 year, the excess shall be treated as an overpayment of tax to be credit- 49 ed or refunded in accordance with the provisions of section six hundred 50 eighty-six of this article, provided, however, that no interest will be 51 paid thereon. 52 § 7. Section 75-0103 of the environmental conservation law is amended 53 by adding a new subdivision 18 to read as follows: 54 18. In its updated plan created pursuant to subdivision fifteen of 55 this section next occurring after the effective date of this subdivi- 56 sion, the council shall incorporate the effects of the increased
S. 1229 6 1 production and use in the state of sustainable aviation fuels, as 2 defined by section 5-129 of the energy law, and the impact that the 3 sustainable aviation fuel credit under section fifty of the tax law has 4 had on such production and use. 5 § 8. This act shall take effect immediately and shall apply to tax 6 years beginning on or after January 1, 2027, and before January 1, 2033, 7 and shall expire and be deemed repealed January 1, 2034.