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A02718 Summary:

BILL NOA02718
 
SAME ASNo Same As
 
SPONSORBarrett (MS)
 
COSPNSRRosenthal L, Ortiz, Rivera, Gunther, Lifton, Glick, Lupardo, Peoples-Stokes, Seawright, Gottfried, Jaffee, Colton, Blake, D'Urso, Crespo, Fahy, Lavine, Steck
 
MLTSPNSRCook, Jones, Mosley, Simon, Thiele
 
Amd 150 & 16, Ag & Mkts L; amd 210-B & 606, Tax L; amd 3-0301 & 19-0309, En Con L
 
Establishes a tax credit for farmers who maximize carbon sequestration potential through a "carbon farming" land management strategy; directs DEC to develop regulations related to certifying the amount of carbon sequestered or emissions reduced.
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A02718 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2718
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 25, 2019
                                       ___________
 
        Introduced  by  M.  of A. BARRETT, L. ROSENTHAL, ORTIZ, RIVERA, GUNTHER,
          LIFTON, GLICK, LUPARDO, PEOPLES-STOKES, SEAWRIGHT, GOTTFRIED,  JAFFEE,
          COLTON,  BLAKE, D'URSO, CRESPO, FAHY, LAVINE, STECK -- Multi-Sponsored
          by -- M. of A.  COOK, JONES, MOSLEY, SIMON, THIELE --  read  once  and
          referred to the Committee on Agriculture

        AN  ACT  to  amend  the  agriculture  and markets law, the environmental
          conservation law and the tax law, in relation to enacting  the  carbon
          farming act
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. This act shall be known and may be  cited  as  the  "carbon
     2  farming act".
     3    §  2.  Legislative  intent.  The legislature hereby finds and declares
     4  that soil and vegetation management can significantly enhance  soil  and
     5  carbon  sequestration,  resulting  in  a wide range of environmental and
     6  agricultural benefits to New  York  farmers  and  residents,  including:
     7  increased yields; soil health; improved water quality; and reductions in
     8  greenhouse gases. The legislature further declares that enhancing carbon
     9  sequestration, the long term storage of carbon in plants, soils, geolog-
    10  ic  formations and the ocean, through farming is in the best interest of
    11  New Yorkers. It is therefore the  intent  of  the  legislature  and  the
    12  purpose  of this act to encourage farmers to further sequester and miti-
    13  gate carbon in this state by establishing carbon farming tax  credit  to
    14  reward  and incentivize farmers to maintain or adopt practices that help
    15  maximize New York's carbon sequestration potential.
    16    § 3. Section 150 of the agriculture and  markets  law  is  amended  by
    17  adding a new subdivision 5 to read as follows:
    18    5.  "Carbon  farming"  means  the  implementation of a land management
    19  strategy for the purposes  of  reducing,  sequestering,  and  mitigating
    20  greenhouse gas emissions on land used in support of a farm operation and
    21  quantifying  those  greenhouse  gas  benefits  using  the  United States
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00468-01-9

        A. 2718                             2
 
     1  Department of Agriculture's COMET-Planner, COMET-Farm, and other quanti-
     2  fication tools.
     3    §  4. Section 210-B of the tax law is amended by adding a new subdivi-
     4  sion 53 to read as follows:
     5    53. Carbon farming credit. (a) Allowance of credit. A taxpayer that is
     6  an agricultural business that produces farm products shall be allowed  a
     7  credit  against  the  tax  imposed  by  this article for the practice of
     8  carbon farming.
     9    (b) Definitions. For purposes of  this  section  the  following  terms
    10  shall have the following meanings:
    11    (i)  "carbon  farming"  shall  have  the  same meaning as set forth in
    12  subdivision five of section one hundred fifty  of  the  agriculture  and
    13  markets law;
    14    (ii)  "farm  products"  shall  have  the  same meaning as set forth in
    15  subdivision five of section two of the agriculture and markets law; and
    16    (iii) "carbon sequestration" shall  mean  the  long  term  storage  of
    17  carbon in plants and soils.
    18    (c)  Such  credit  shall  be calculated based on the economic value of
    19  carbon farming  as  determined  by  the  commissioner  of  environmental
    20  conservation,  in  consultation with the commissioner of agriculture and
    21  markets and the commissioner pursuant to paragraph  ccc  of  subdivision
    22  two of section 3-0301 of the environmental conservation law.
    23    (d)  The taxpayer shall attach to its tax return its final certificate
    24  of eligibility issued by the commissioner of environmental  conservation
    25  pursuant to section 19-0309 of the environmental conservation law. In no
    26  event  shall the taxpayer be allowed a credit greater than the amount of
    27  the credit listed on  the  final  certificate  verifying  the  emissions
    28  reductions to be credited to the taxpayer.
    29    (e)  If  the amount of the credit allowable under this subdivision for
    30  any taxable year shall exceed the taxpayer's  tax  for  such  year,  any
    31  amount of credit not deductible in such taxable year may be carried over
    32  to  the  following three years, and may be deducted for the taxpayer for
    33  such year.
    34    § 5. Section 606 of the tax law is amended by adding a new  subsection
    35  (jjj) to read as follows:
    36    (jjj)  Carbon  farming credit. (1) Allowance of credit. A taxpayer who
    37  provides farm products and who practices carbon farming shall be allowed
    38  a credit against the tax imposed by this article.
    39    (2) Definitions. For the purposes of this  subsection,  the  following
    40  definitions shall apply:
    41    (A) "Farm products" shall have the same meaning as set forth in subdi-
    42  vision five of section two of the agriculture and markets law.
    43    (B)  "Carbon  farming"  shall  have  the  same meaning as set forth in
    44  subdivision five of section one hundred fifty  of  the  agriculture  and
    45  markets law.
    46    (3)  Application  of  credit. Such credit shall be calculated based on
    47  the economic value of carbon farming as determined by  the  commissioner
    48  of  environmental conservation, in consultation with the commissioner of
    49  agriculture and markets pursuant to paragraph ccc of subdivision two  of
    50  section 3-0301 of the environmental conservation law.
    51    (4)  Certification  required.  The  taxpayer  shall  attach to its tax
    52  return its final certificate of eligibility issued by  the  commissioner
    53  of  environmental  conservation pursuant to section 19-0309 of the envi-
    54  ronmental conservation law. In no event shall the taxpayer be allowed  a
    55  credit greater than the amount of the credit listed on the final certif-
    56  icate verifying the emissions reductions to be credited to the taxpayer.

        A. 2718                             3
 
     1    (5)  Carryover  of credit. If the amount of the credit allowable under
     2  this subsection for any taxable year shall exceed the taxpayer's tax for
     3  such year, any amount of credit not deductible in such taxable year  may
     4  be  carried  over  to the following three years, and may be deducted for
     5  the taxpayer for such year.
     6    § 6. Subdivision 2 of section 3-0301 of the environmental conservation
     7  law is amended by adding a new paragraph ccc to read as follows:
     8    ccc.  Cooperate  with  the  department  of  agriculture and markets to
     9  develop educational materials to promote and encourage  carbon  farming.
    10  Such  materials  shall promote farming practices which reduce, sequester
    11  and mitigate greenhouse gas  emissions  through  the  implementation  of
    12  carbon  farming  strategies and on land used in support of a farm opera-
    13  tion; and develop and codify a metric to quantify the storage of  carbon
    14  using  the  United  States  Department  of  Agriculture's COMET-Planner,
    15  COMET-Farm, and other quantification tools. The department shall develop
    16  and distribute an application and certification procedure which verifies
    17  the carbon stored to be  credited  to  each  farm.  The  department  may
    18  promulgate rules and regulations necessary to implement this section.
    19    §  7.  Subdivision 1 of section 19-0309 of the environmental conserva-
    20  tion law, as amended by chapter 817 of the laws of 1987, is  amended  to
    21  read as follows:
    22    1.  For the purposes of sections 208, 210, 606 and 612 of the Tax Law,
    23  the commissioner or his designated representative is  hereby  authorized
    24  to  issue  certificates  of  compliance concerning air pollution control
    25  facilities [and], air pollution controlled process facilities and carbon
    26  farming as defined in such law. No  such  certificate  shall  be  issued
    27  unless  the  facility  to  which  it is applicable is in compliance with
    28  applicable provisions of titles 1 to 11,  inclusive,  and  title  19  of
    29  article  17,  article  19, and title 1 of article 27 of this chapter; of
    30  the Public Health Law; of the state sanitary code and of  codes,  rules,
    31  regulations, permits or orders issued pursuant thereto.
    32    §  8.  Section  16  of  the  agriculture and markets law is amended by
    33  adding a new subdivision 49 to read as follow:
    34    49. Cooperate with the department  of  environmental  conservation  to
    35  develop    educational  materials to encourage carbon farming and how to
    36  use the United States Department of Agriculture's COMET-Planner,  COMET-
    37  Farm,  and other carbon quantification tools.  The program shall promote
    38  farming practices which reduce, sequester and  mitigate  greenhouse  gas
    39  emissions  on  land used in support of a farm operation.  The department
    40  shall promote the carbon farming tax credit  provided  in  sections  two
    41  hundred ten-b and six hundred six of the tax law.
    42    §  9.  This  act shall take effect on the ninetieth day after it shall
    43  have become a law; provided, however, that  effective  immediately,  the
    44  addition,  amendment,  and/or repeal of any rule or regulation necessary
    45  for the implementation of this act on its effective date are  authorized
    46  and directed to be made and completed on or before such effective date.
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