Bill > S03803

This bill introduces a tax credit for the purchase or conversion of electric and zero-emission vessels in New York State, aimed at promoting environmentally friendly maritime transportation. The tax credit will be available from 2026 to 2037, starting at 30% of the sales tax on the purchase or conversion and gradually reducing by 5 percentage points each year after 2031. To be eligible, taxpayers must purchase or convert a vessel for personal use or lease, register it in New York for at least six months, and pay sales tax on the purchase or conversion. The bill defines "electric vessels" as those with electric propulsion systems, including battery-rechargeable and plug-in hybrid vessels, and "zero-emission vessels" as those powered by sources that produce no exhaust emissions. The Department of Taxation and the Department of Environmental Conservation will collaborate to compile a list of qualifying vessels and develop guidelines for conversions. The credit will be available against personal income tax and corporate franchise tax, with a maximum credit of $40,000 per partnership, limited liability company, or S corporation in any tax year. Notably, expenses used to calculate this credit cannot be the basis for any other tax credit, and the credit will expire after December 31, 2037.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S3803