Bill > S02316

This bill introduces a tax credit for farmers who purchase and use qualified biodiesel fuel in their farm equipment, designed to incentivize the use of alternative, potentially more environmentally friendly fuel sources. Under the proposed legislation, farmers whose federal gross income from farming represents at least two-thirds of their excess federal gross income can receive a credit of $0.01 per percent of biodiesel per gallon, up to a maximum of 20 cents per gallon. The bill defines "biodiesel" as a fuel exclusively comprised of monoalkyl esters of long chain fatty acids derived from vegetable oils or animal fats, meeting specific American Society of Testing and Materials standards, and "qualified biodiesel" as a mixture of biodiesel and diesel motor fuel. If the credit amount exceeds the taxpayer's tax liability for the year, the excess will be treated as an overpayment and can be refunded, though no interest will be paid on the refund. The bill will take effect for taxable years beginning on or after January 1, 2026, and applies to both corporate and individual income tax filings for eligible farmers.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S2316