NY S09503

Allows taxpayers subject to articles 9-A or 22 of tax law to claim a tax credit for purchasing or converting a vessel to an electric or zero emission vessel, with the credit calculated as a percentage of sales tax paid on the purchase or conversion.

Credit rates are 30% of sales tax for purchases/conversions between January 1, 2023 and December 31, 2027, then declining by 5 percentage points annually from 2029-2033, with no credits allowed after December 31, 2034.

Requires vessels to be registered in New York for at least 6 months of the taxable year, purchased for personal use or lease (not resale), and taxpayers converting vessels must obtain department approval through an application process.

Limits partnership, limited liability company, and subchapter S corporation credits to a maximum of $40,000 per tax year for all vessels combined.

Becomes effective immediately and applies to taxable years beginning on or after January 1, 2023.