Bill Text: NY A05529 | 2019-2020 | General Assembly | Introduced


Bill Title: Creates a tax credit for companies that purchase New York-grown crops and use such crops in their value added products; such credit increases with increased net sales.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2019-02-13 - referred to ways and means [A05529 Detail]

Download: New_York-2019-A05529-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          5529
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 13, 2019
                                       ___________
        Introduced  by M. of A. SALKA -- read once and referred to the Committee
          on Ways and Means
        AN ACT to amend the tax law, in relation to creating a  tax  credit  for
          companies  that  purchase  New  York-grown crops and use such crops in
          value added products
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  The tax law is amended by adding a new section 44 to read
     2  as follows:
     3    § 44. NY crops for value added products tax  credit.  (a)  General.  A
     4  taxpayer subject to tax under article nine, nine-A or twenty-two of this
     5  chapter  shall  be  allowed  a  credit  against such tax pursuant to the
     6  provisions referenced in subdivision (e) of this section,  however,  the
     7  unused  portion  of  any tax credit claimed shall not be carried forward
     8  and applied in another tax year. The tax credit allowed pursuant to this
     9  section shall apply to taxable  years  beginning  on  or  after  January
    10  first, two thousand twenty.
    11    (b)  Definitions. For the purposes of this section the following terms
    12  shall have the following meanings:
    13    (1) "crop" shall mean (i) fruits, including apples,  peaches,  grapes,
    14  cherries  and  berries, (ii) vegetables, including tomatoes, snap beans,
    15  cabbage, carrots, beets and onions, and  (iii)  field  crops,  including
    16  corn, wheat, oats, rye, barley, hay, hops, potatoes and dry beans;
    17    (2)  "value  added product" shall mean the increase in the fair market
    18  value of a product resulting from the processing of such product;
    19    (3) "net sales" shall mean the total sales of the business subject  to
    20  tax.
    21    (4)  "eligible  taxpayer"  means a corporation (including a New York S
    22  corporation), a sole proprietorship, a limited liability  company  or  a
    23  partnership.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09380-01-9

        A. 5529                             2
     1    (c)  The  amount  of  the  credit shall be proscribed according to the
     2  following schedule:
     3    (1) for twenty percent of net sales attributed to value added products
     4  that  used  a New York-grown crop, the credit shall be one thousand five
     5  hundred dollars.
     6    (2) for forty percent of net sales attributed to value added  products
     7  that  used  a  New  York-grown  crop, the credit shall be three thousand
     8  dollars.
     9    (3) for sixty percent of net sales attributed to value added  products
    10  that  used  a  New  York-grown  crop,  the  credit shall be six thousand
    11  dollars.
    12    (4) for eighty percent of net sales attributed to value added products
    13  that used a New York-grown crop, the credit  shall  be  twelve  thousand
    14  dollars.
    15    (5)  for  one  hundred  percent of net sales attributed to value added
    16  products that used a New York-grown crop, the credit  shall  be  twenty-
    17  five thousand dollars.
    18    (d)  (1) Businesses claiming the NY crops for value added products tax
    19  credit shall submit a computer-generated report with  tax  returns  that
    20  claim a tax credit.
    21    (2)  Such  report shall include the name of the producer and the phys-
    22  ical place of business where the products are produced.
    23    (3) The amount paid by the grocer or  business  to  the  producer  and
    24  amount of units purchased.
    25    (e)  Cross-references.  For  application of the credit provided for in
    26  this section, see the following provisions of this chapter:
    27    (1) Article 9: Section 187-q.
    28    (2) Article 9-A: Section 210-B, subdivision 53.
    29    (3) Article 22: Section 606, subsections (i) and (jjj).
    30    § 2. Section 210-B of the tax law is amended by adding a new  subdivi-
    31  sion 53 to read as follows:
    32    53.  NY crops for value added products tax credit. A taxpayer shall be
    33  allowed a credit, to be computed as provided in  section  forty-four  of
    34  this chapter against the tax imposed by this article. The credit allowed
    35  under this subdivision for any taxable year shall not reduce the tax due
    36  for such year to less than the fixed dollar minimum amount prescribed in
    37  paragraph  (d)  of  subdivision  one  of section two hundred ten of this
    38  article. However, if the amount of credit allowed under this subdivision
    39  for any taxable year reduces the tax to such amount or if  the  taxpayer
    40  otherwise  pays tax based on the fixed dollar minimum amount, any amount
    41  of credit thus not deductible in such taxable year shall be  treated  as
    42  an  overpayment of tax to be credited or refunded in accordance with the
    43  provisions of section one thousand eighty-six of this chapter. Provided,
    44  however, the provisions of subsection (c) of section one thousand eight-
    45  y-eight of this chapter notwithstanding, no interest shall be paid ther-
    46  eon. The tax credit allowed pursuant to  this  section  shall  apply  to
    47  taxable years beginning on or after January first, two thousand twenty.
    48    §  3. Section 606 of the tax law is amended by adding a new subsection
    49  (jjj) to read as follows:
    50    (jjj) NY crops for value added products tax credit. A  taxpayer  shall
    51  be  allowed a credit to be computed as provided in section forty-four of
    52  this chapter against the tax imposed by this article. If the  amount  of
    53  the  credit  allowed  under  this  subsection for any taxable year shall
    54  exceed the taxpayer's tax for such year, the excess shall be treated  as
    55  an  overpayment of tax to be credited or refunded in accordance with the
    56  provisions of section six hundred eighty-six of this article,  provided,

        A. 5529                             3
     1  however,  that no interest shall be paid thereon. The tax credit allowed
     2  pursuant to this section shall apply to taxable years  beginning  on  or
     3  after January first, two thousand twenty.
     4    §  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
     5  of the tax law is amended by adding a  new  clause  (xliv)  to  read  as
     6  follows:
     7  (xliv) NY crops for value added products     Amount of credit under
     8  tax credit under subsection (jjj)            subdivision fifty-three of
     9                                               section two hundred ten-B
    10    §  5.  The tax law is amended by adding a new section 187-q to read as
    11  follows:
    12    § 187-q. NY crops for value added products tax credit.  (a)  Allowance
    13  of  credit.  A  taxpayer  shall  be  allowed a credit, to be computed as
    14  provided in section forty-four of this chapter against the  tax  imposed
    15  by this article.
    16    (b)  Application  of credit. The credit allowed under this subdivision
    17  for any taxable year shall not reduce the tax due for such year to  less
    18  than  the  fixed  dollar  minimum  amount prescribed in paragraph (d) of
    19  subdivision one of section two hundred ten of this chapter. However,  if
    20  the amount of credit allowed under this subdivision for any taxable year
    21  reduces  the  tax  to  such amount or if the taxpayer otherwise pays tax
    22  based on the fixed dollar minimum amount, any amount of credit thus  not
    23  deductible  in  such  taxable year shall be treated as an overpayment of
    24  tax to be credited or refunded in  accordance  with  the  provisions  of
    25  section  one thousand eighty-six of this chapter. Provided, however, the
    26  provisions of subsection (c) of section  one  thousand  eighty-eight  of
    27  this chapter notwithstanding, no interest shall be paid thereon. The tax
    28  credit  allowed  pursuant  to  this section shall apply to taxable years
    29  beginning on or after January first, two thousand twenty.
    30    § 6. This act shall take effect immediately and shall apply to taxable
    31  years beginning on or after January 1, 2020.
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