S 4438: Establishes a hydroelectric power tax credit.

  
  STATE OF NEW YORK ________________________________________________________________________ 4438 2025-2026 Regular Sessions  IN SENATE February 5, 2025 ___________ Introduced by Sen. ASHBY -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law, in relation to establishing a hydroelectric power tax credit The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The tax law is amended by adding a new section 50 to read 2 as follows: 3 § 50. Hydroelectric power credit. (a) Allowance of credit. A taxpayer 4 subject to tax under article nine, nine-a, twenty-two or thirty-three of 5 this chapter shall be allowed a hydroelectric power credit against such 6 tax, for fifty percent of the cost of any licensing or relicensing fees 7 assessed by any state or federal agency. 8 (b) Cross-references. For application of the credit provided for in 9 this section, see the following provisions of this chapter: 10 (1) article 9: section 187-s; 11 (2) article 9-A: section 210-B, subdivision 61; 12 (3) article 22: section 606, subsections (i) and (bbb); 13 (4) article 33: section 1511, subdivision (ff). 14 § 2. The tax law is amended by adding a new section 187-s to read as 15 follows: 16 § 187-s. Hydroelectric power credit. 1. Allowance of credit. A taxpay- 17 er shall be allowed a credit, to be computed as provided in section 18 fifty of this chapter, against the taxes imposed by sections one hundred 19 eighty-three, one hundred eighty-four and former section one hundred 20 eighty-six of this article. Provided, however, that the amount of such 21 credit allowable against the tax imposed by section one hundred eighty- 22 four of this article shall be the excess of the amount of such credit 23 over the amount of any credit allowed by this section against the tax 24 imposed by section one hundred eighty-three of this article. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08940-01-5 
 S. 4438 2 1 2. Carryover. In no event shall the credit under this section be 2 allowed in an amount which will reduce the tax payable to less than the 3 applicable minimum tax fixed by section one hundred eighty-three or 4 former section one hundred eighty-six of this article. If, however, the 5 amount of credit allowable under this section for any taxable year 6 reduces the tax to such amount, any amount of credit not deductible in 7 such taxable year may be carried over to the following year or years and 8 may be deducted from the taxpayer's tax for such year or years. 9 § 3. Section 210-B of the tax law is amended by adding a new subdivi- 10 sion 61 to read as follows: 11 61. Hydroelectric power credit. (a) Allowance of credit. A taxpayer 12 shall be allowed a credit, to be computed as provided in section fifty 13 of this chapter, against the tax imposed by this article. 14 (b) Carryover. The credit allowed under this subdivision for any taxa- 15 ble year shall not reduce the tax due for such year to less than the 16 amount prescribed in paragraph (d) of subdivision one of section two 17 hundred ten of this article. However, if the amount of credit allowable 18 under this subdivision for any taxable year reduces the tax to such 19 amount or if the taxpayer otherwise pays tax based on the fixed dollar 20 minimum amount, any amount of credit not deductible in such taxable year 21 may be carried over to the following year or years, and may be deducted 22 from the qualified employer's tax for such years. 23 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 24 of the tax law is amended by adding a new clause (lii) to read as 25 follows: 26 (lii) Hydroelectric power Amount of credit under 27 credit under subsection (bbb) subdivision sixty-one of 28 section two hundred ten-B, 29 or subdivision (ff) of section 30 fifteen hundred eleven 31 § 5. Section 606 of the tax law is amended by adding a new subsection 32 (bbb) to read as follows: 33 (bbb) Hydroelectric power credit. (1) Allowance of credit. A taxpayer 34 shall be allowed a credit, to be computed as provided in section fifty 35 of this chapter, against the tax imposed by this article. 36 (2) Carryover. The credit allowed under this subsection for any taxa- 37 ble year shall not reduce the tax due for such year to less than the 38 amount prescribed in paragraph (d) of subdivision one of section two 39 hundred ten of this chapter. However, if the amount of credit allowable 40 under this subsection for any taxable year reduces the tax to such 41 amount or if the taxpayer otherwise pays tax based on the fixed dollar 42 minimum amount, any amount of credit not deductible in such taxable year 43 may be carried over to the following year or years, and may be deducted 44 from the taxpayer's tax for such years. 45 § 6. Section 1511 of the tax law is amended by adding a new subdivi- 46 sion (ff) to read as follows: 47 (ff) Hydroelectric power credit. (1) Allowance of credit. A taxpayer 48 shall be allowed a credit, to be computed as provided in section fifty 49 of this chapter, against the tax imposed by this article. 50 (2) Carryover. The credit allowed under this subdivision for any taxa- 51 ble year shall not reduce the tax due for such year to less than the 52 minimum fixed by paragraph four of subdivision (a) of section fifteen 53 hundred two of this article or by section fifteen hundred two-a of this 54 article, whichever is applicable. However, if the amount of the credit 
 S. 4438 3 1 allowed under this subdivision for any taxable year reduces the taxpay- 2 er's tax to such amount, any amount of credit thus not deductible shall 3 be treated as an overpayment of tax to be credited in accordance with 4 the provisions of section one thousand eighty-six of this chapter. 5 Provided, however, the provisions of subsection (c) of section one thou- 6 sand eighty-eight of this chapter notwithstanding, no interest shall be 7 paid thereon. 8 § 7. This act shall take effect immediately.