2023 New York Laws › TAX - Tax › Article 1 - Short Title; Definitions; Miscellaneous › 47*2 - Grade No. 6 Heating Oil Conversion Tax Credit.

* §  47.  Grade  no.  6  heating  oil  conversion  tax credit. (a) (1)
Allowance of credit. A taxpayer that meets the eligibility  requirements
of  subdivision  (b) of this section and is subject to tax under article
nine-A or twenty-two of this chapter may be eligible to  claim  a  grade
no.  6  heating  oil  conversion  tax  credit  in  the  taxable year the
conversion is complete. The credit shall be equal to  fifty  percent  of
the  conversion  costs  for all of the taxpayer's buildings located at a
facility regulated pursuant to section 19-0302 or title ten  of  article
seventeen  of  the environmental conservation law, paid by such taxpayer
on or after January first, two thousand twenty-two  and  before  January
first,  two  thousand twenty-four. The credit cannot exceed five hundred
thousand dollars per facility.
(2) A taxpayer that is a partner in a partnership, member of a limited
liability company or shareholder in a subchapter S corporation shall  be
allowed  its  pro  rata  share  of the credit earned by the partnership,
limited liability company or subchapter S  corporation  that  meets  the
eligibility  criteria  described  in  subdivision (b) of this section to
claim a grade no. 6 heating oil conversion tax credit. In no  event  may
the  total  amount  of  the  credit  earned  by the partnership, limited
liability company  or  subchapter  S  corporation  exceed  five  hundred
thousand  dollars  for  all  buildings  located  at  a  New  York  state
department of environmental conservation regulated facility.
(3) No cost or expense paid  or  incurred  by  the  taxpayer  that  is
included as part of the calculation of this credit shall be the basis of
any other tax credit allowed under this chapter.
(b)  Eligibility  criteria.  (1) To be eligible to claim a grade no. 6
heating oil conversion tax credit, a business entity must:
(i) incur expenses for the conversion from grade  no.  6  heating  oil
fuel, as described as "conversion costs" in paragraph (1) of subdivision
(c)  of this section, to biodiesel heating oil or a geothermal system at
any building located in New York state outside the city of New York;
(ii) submit an application to and obtain approval of such  application
by  the  New  York  state  energy  research  and  development  authority
describing  the  conversion  and  approved  costs   to   complete   such
conversion;
(iii)  not be principally engaged in the generation or distribution of
electricity, power or energy;
(iv) be in compliance with all  environmental  conservation  laws  and
regulations; and
(v)  not owe past due state taxes unless the business entity is making
payments and  complying  with  an  approved  binding  payment  agreement
entered into with the taxing authority.
(c)  Definitions.  As  used  in this section the following terms shall
have the following meanings:
(1) Conversion costs means the equipment and  labor  costs  associated
with  the design, installation and use of space heating and other energy
conversion systems that are  designed  to  or  accommodate  the  use  of
biodiesel  fuel  or  a  geothermal  system  and,  at  the  option of the
taxpayer, the costs  of  completing  an  ASHRAE  level  2  energy  audit
including assessment of electrification options.
(2)  Biodiesel  means  a  minimum  blend  of  eighty-five (85) percent
biodiesel, defined as fuel  manufactured  from  vegetable  oils,  animal
fats,  or  other  agricultural  or  other  products or by-products, with
petrodiesel fuel commonly used for heating systems.
(3) Geothermal means a system that uses the ground or ground water  as
a  thermal  energy source/sink to heat or cool a building or provide hot
water within the building.
(4)  A  New  York  state  department  of  environmental   conservation
regulated  facility  is a facility regulated pursuant to section 19-0302
or title ten of article seventeen of the environmental conservation law.
(d)  The  commissioner, in consultation with the New York state energy
research and development authority, will develop an application  process
to certify the expenses necessary for the conversion and a taxpayer will
not  be  eligible  to  claim  the  credit  unless  it has completed that
application process and the application has been  approved  by  the  New
York state energy research and development authority.
(e)   Information   sharing.   The   department,   the  department  of
environmental conservation and the New York state  energy  research  and
development  authority  shall  be  allowed and are directed to share and
exchange information regarding the information contained on  the  credit
application  for  claiming  the  grade  no. 6 heating oil conversion tax
credit and  such  information  exchanged  between  the  department,  the
department  of  environmental conservation and the New York state energy
research and development authority shall not be subject to disclosure or
inspection under the state's freedom of information law.
(f) Cross references. For application of the credit  provided  for  in
this section, see the following provisions of this chapter:
(1) article 9-A: section 210-B, subdivision 58;
(2) article 22: section 606, subsection (nnn).
* NB There are 3 § 47's