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The
New York State Senate has passed a comprehensive energy plan that would
provide motorists with immediate relief from high gasoline prices, ease
the impact of skyrocketing home heating costs on senior citizens this
winter and address the state's long term energy needs by encouraging
the use of alternative energy and conservation.
The
centerpiece of the Senate energy plan is a cap on the State and local
sales taxes on gasoline that would save consumers about $90 million
through the rest of this year, and $400 million annually if gas prices
remain near $3 per gallon and all localities participate. The New York
City council, and many other local government officials, have also
asked the Senate to adopt a cap on gas sales taxes. Also, the Senate is
proposing to use the windfall in State sales tax collections, resulting
from the increased sales taxes on higher priced gas, to provide rebate
checks to senior citizens to help offset winter heating costs.
The
high cost of energy is having a major impact on our economy, hurting
the bottom lines of small businesses, pinching the pocketbooks of
families and threatening the ability of seniors to keep warm this
winter," Senate Majority Leader Joseph L. Bruno said. "The Senate plan
addresses the immediate need to lower gas prices, the looming crisis of
high heating fuel costs and would put long term measures in place to
encourage the use of alternative sources of energy and to encourage
conservation."
"There
are people in media and in government who say the best thing to do
about the energy crisis is nothing, and that's wrong," Bruno said.
"People are looking for relief, they are looking for help and they are
looking for answers. With our action today, the Senate is providing
relief, assistance and answers and I hope the Assembly will support our
energy plan."
Bruno
said the Senate is also reviewing an energy plan submitted by Governor
Pataki.
As
a result of recent natural disasters, crude oil shortages, and
increased oil consumption throughout the world, energy prices have
skyrocketed," Senator James Wright (R-C-I, Watertown), Chairman of the
Senate Committee on Energy and Telecommunications, said. "In response,
the Senate has put forth bold new ideas to counteract high prices and
looming problems. The enactment of the sales tax cap on gasoline, the
creation of the "Senior Heat" program, and a continued focus on new
energy technologies will provide relief to consumers in the short and
long term." In addition to the cap on gas taxes and the senior heating
assistance program, the Senate energy plan includes bills that would:
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Provide a tax credit for the production of bio-fuel products;
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Extend tax credits for the purchase of alternative fuel vehicles;
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Extend property tax exemptions for alternative energy facilities; and
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Provide a sales tax exemption on Energy Star products, home insulation
and newly installed alternative energy systems.
The
Senate also passed a resolution, asking the federal government to
increase funding for the low income Home Energy Assistance Program,
based on anticipated higher costs for home heating fuel this winter.
SALES
TAX CAP ON GASOLINE
The
Senate energy plan would cap the State and local sales tax on gasoline
at a taxable value of $2 per gallon. The cap would save motorists an
estimated $45 million through the rest of the year and $200 million
annually in State sales taxes, if gas prices stay at about $3 per
gallon. The cap covers the local sales tax on gas unless a local
government votes to opt out of the cap. If all localities participate,
the plan would generate another $200 million in savings.
"The
spike in gas prices has affected everyone, working men and women,
businesses, families and our senior citizens," Senator Robach said. "I
am happy to sponsor this legislation that will give immediate relief to
motorists by capping sales tax on motor fuel and diesel fuel resulting
in a significant savings for families annually."
"The
State has been profiting from the rise in gas prices because higher
prices mean higher gas taxes," Senator Bruno said. "The Senate plan
would cap the tax, reduce the cost of gas at the pump and limit the
impact on consumers' wallets."
In addition, the Senate passed legislation (S.5969), sponsored by
Senator Carl Marcellino (R, Syosset) to prohibit gas station owners
from raising the price of gas more than once a day.
SENIOR
HEAT
The
Senate's "Senior Heat" program would provide $200 rebate checks to
eligible senior citizen homeowners to help offset the cost of home
heating. Seniors approved for the enhanced STAR school property tax
rebate program (at least 65 years old with an annual income of less
than $64,650) would be eligible for the Senior Heat program.
The
Senior Heat program legislation, sponsored by Senator Nicholas Spano
(R-C-I-WF, Westchester), would also provide a $100 refundable State tax
credit to eligible senior citizens who rent and pay for their heat.
The
Senior Heat program would be primarily funded with revenues from the
gas tax windfall, now projected at $42 million, but estimated to grow
to $100 million or more by the end of the fiscal year. The program
would provide an estimated $140 million in assistance to more than
640,000 senior homeowners and renters. (S.5965, Sen. Spano)
"Last
week the Senate Investigations Committee held a hearing on the
escalating costs of gas. One thing is clear, we need to heat our homes
this winter and it has been reported that heating costs could skyrocket
by as much as $350 per household," Senator Spano said. "This tax credit
and rebate will help our seniors on a fixed income to stay warm this
winter."
"This
winter seniors on fixed incomes will face an impossible choice between
staying warm and buying food and medicine," Bruno said. "This program
will help avert tragedy, and help hard-pressed seniors stay warm, by
directing this unanticipated windfall to those who need it most."
In
addition to soaring gas prices, the price for natural gas and heating
oil has risen dramatically since last winter. According to NYSERDA, the
average fuel oil price rose from $1.76 per gallon one year ago to $2.72
per gallon last week -- a 55 percent increase. New York homeowners
consume an average 800 gallons of fuel oil each winter. Utilities are
already projecting record increases in natural gas costs.
ENCOURAGING
BIO FUEL PRODUCTION
The
Senate passed legislation (S.5846A), sponsored by Senator James Wright
(R-C-I, Watertown), that would provide manufacturers of qualified
bio-fuel products, primarily ethanol and bio-diesel, with a refundable
tax credit. The credit would be 15 cents a gallon, capped at $2.5
million per plant, per year for up to four years.
"It is important that we provide incentives for the production of
biofuels," said Wright. "In addition to the air quality and
environmental advantages, biofuels, such as ethanol and biodiesel, are
viable long-term alternatives to petroleum based fuels. Increased
investment in biofuels will not only have a positive economic impact on
the State, but also assist with our overarching efforts to reduce our
dependence on foreign oil."
The
Federal Government and industry experts estimate that drivers in New
York State would see a minimum savings of eight cents a gallon at the
pump if New York State could provide a substantial amount of the
ethanol that will be required to be used by the new Federal Energy Act
of 2005. It is estimated that the credit will save New York State
taxpayers $600,000 in SFY 2006-07 and $10 million a year in SFY
2010-11. As more New York State produced bio-fuels are added to the mix
of gasoline at the pump, consumers will see a further easing of gas
prices.
ALTERNATIVE FUEL VEHICLES
The
Senate passed a bill (S.5763A), sponsored by Senator Carl Marcellino
(R, Syosset), that would extend through the end of 2006, the recently
expired alternative fueled vehicle tax credit. The credit would apply
to actual alternative fuels such as methanol, ethanol and fully
electric vehicles. The bill also reestablishes a State sales tax
exemption for the purchase of refueling property equipment. The bill is
estimated to provide $3 million a year in credits through SFY 2007-08.
"By
encouraging people to purchase alternative fuel automobiles we are
improving the quality of life for all New Yorkers," Senator Carl
Marcellino (R, Syosset) said.
"Whether
you are worried about skyrocketing prices at the pump, or you are
concerned with doing your part to fight the greenhouse effect,
alternative fuel cars are good for your wallet as well as the
environment."
ALTERNATIVE ENERGY PROPERTY TAX EXEMPTION
The
Senate passed legislation to extend for four years, a law that allows
localities and school districts to provide a full or partial exemption
for real property taxes on land that contains alternative energy
generation systems such as wind and solar power and farm waste to
energy systems. The law is scheduled to sunset on January 1, 2006.
(S.5966, Sen. Flanagan)
"By
providing tax incentives we can encourage positive, environmentally
conscious ways to produce electricity and fuel," Senator John J.
Flanagan (R,C-East Northport) said. "Cutting taxes is an effective way
to expand our use of alternative sources of energy and reduce our
dependence on foreign oil."
ENERGY STAR EXEMPTION
The
Senate today passed a measure to eliminate the State sales tax on
insulation materials such as high efficiency windows, doors,
weather-stripping, pipe sheathing and alternative energy systems in or
attached to a building such as wind power or fuel cells. In addition,
the bill would provide four sales tax free weeks (one per season) on a
variety of energy star products, such as washers, dryers,
refrigerators, dishwashers, furnaces and hot water heaters. These
measures are estimated to save New York State taxpayers $40 million a
year. (S.5970, Sen. Hannon)
"This
bill would provide additional incentive for consumers to purchase
Energy Star rated products and alternative energy systems so they can
save energy and save money," Senator Kemp Hannon (R-C-I, Garden City)
said.
FUEL CELL CREDIT
The
Senate passed a chapter amendment (S.5967) to a law passed this year
(S. 2994-B), sponsored by Senator George Winner, (R-C, Elmira), that
creates a new fuel cell credit. The law provides tax credits for the
purchase of commercial fuel cell generating equipment and encourages
their use.
"Emergency
electric generators are becoming increasingly necessary as our society
becomes more and more reliant on computers and other modern technology
susceptible to natural disasters, terrorist attacks and the
unpredictability of the power grid," said Senator Winner. "Fuel cells
offer a clean, environment friendly, efficient, effective and reliable
source of power for electric generators. This legislation encourages
the use of fuel cells by helping businesses offset the cost of
investing in fuel cell technology."
ALTERNATIVE ENERGY EQUIPMENT
Earlier
this year, the Senate passed legislation (S.785), sponsored by Senator
Charles Fuschillo (R-C, Merrick), that would provide a tax credit for
businesses that install alternative energy equipment such as wind,
solar or fuel cells. This bill would save New York State businesses $15
million a year beginning in SFY 2006-07. The Assembly did not act on
this bill.
"This
legislation will assist businesses to reduce their reliance on
nonrenewable sources of energy by allowing them to save money and to
gain some cost certainty in the future," Senator Fuschillo said. "More
importantly, this legislation will deliver that same cost certainty to
consumers, since prices would not be as affected by foreign energy
costs. And all this is accomplished while helping to achieve everyone's
main goal of protecting the environment for future generations."
AIRCRAFT FUEL
Earlier
this year, the Senate passed legislation (S.5755), sponsored by Senator
Nicholas Spano (R-C-I-WF, Westchester), that provides enhanced
exemptions for Petroleum Business Taxes on qualifying aircraft flights.
The aviation industry would save an estimated $7 million under the
bill, but the State revenue impact is neutral.
"The
elimination of the petroleum business tax on aviation fuel will benefit
New Yorkers by reducing the cost of flights and encouraging airlines to
offer more intrastate flights at cheaper prices. With the costs of
gasoline skyrocketing, the time to eliminate this tax is now," Senator
Spano said.
The bills were sent to the Assembly.
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