Bill Text: NY S01438 | 2017-2018 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relates to providing a tax credit to farmers who sell or rent their agricultural land to a young farmer.

Spectrum: Strong Partisan Bill (Republican 13-1)

Status: (Introduced - Dead) 2018-02-23 - PRINT NUMBER 1438B [S01438 Detail]

Download: New_York-2017-S01438-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          1438
                               2017-2018 Regular Sessions
                    IN SENATE
                                     January 9, 2017
                                       ___________
        Introduced  by  Sens.  RITCHIE,  BONACIC, DeFRANCISCO, GALLIVAN, GRIFFO,
          LARKIN, MARCHIONE, O'MARA, ORTT, RANZENHOFER, SEWARD,  YOUNG  --  read
          twice  and  ordered  printed,  and when printed to be committed to the
          Committee on Investigations and Government Operations
        AN ACT to amend the tax law, in relation to providing a  tax  credit  to
          farmers who sell or rent their agricultural land to a young farmer
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Section 210-B of the tax law is amended  by  adding  a  new
     2  subdivision 52 to read as follows:
     3    52.  Credit  for farmers who sell or rent their agricultural land to a
     4  young farmer.  (a) Allowance of credit. A taxpayer that is  an  agricul-
     5  tural  business  principally engaged in farming, as such term is defined
     6  in paragraph nineteen of subdivision (b) of section eleven  hundred  one
     7  of  this  chapter  shall  be allowed a credit against the tax imposed by
     8  this article for the sale or rent of their agricultural lands to a young
     9  farmer, as defined in this section. Such credit shall be ten percent  of
    10  the purchase price or rental amount of the agricultural lands.
    11    (b)  For  purposes  of  this  subdivision, "young farmer" shall mean a
    12  farmer who has not produced an agricultural product for  more  than  ten
    13  consecutive  years, where agricultural product means any agricultural or
    14  aquacultural product of the soil or water, including but not limited  to
    15  fruits,  vegetables, eggs, dairy products, meat and meat products, poul-
    16  try and poultry products,  fish  and  fish  products,  grain  and  grain
    17  products, honey, nuts, preserves, maple sap products, apple cider, fruit
    18  juice, horticultural specialties, and Christmas trees and who will mate-
    19  rially  and  substantially  participate in the production of an agricul-
    20  tural project.
    21    (c) Prior to sale, the seller shall convey to the department of  agri-
    22  culture  and  markets, an easement, the terms of which limit development
    23  of the land to agricultural business, principally farming, as such  term
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07443-01-7
        S. 1438                             2
     1  is  defined  in  paragraph nineteen of subdivision (b) of section eleven
     2  hundred one of this chapter. The easement shall expire not less than ten
     3  years from the date of sale.
     4    §  2. Section 606 of the tax law is amended by adding a new subsection
     5  (ccc) to read as follows:
     6    (ccc) Credit for the sale or rent of  agricultural  land  to  a  young
     7  farmer.  (1)  Allowance of credit. A taxpayer whose federal gross income
     8  from farming for the taxable year  is  at  least  two-thirds  of  excess
     9  federal  gross  income shall be allowed a credit against the tax imposed
    10  by this article for the sale or rent of agricultural land  or  equipment
    11  to a young farmer, as defined by section two hundred ten-B of this chap-
    12  ter.  Such  credit  shall be ten percent of the purchase price of rental
    13  amount of the agricultural land, and shall  be  allowed  notwithstanding
    14  subsection (kk) of this section.
    15    (2)  Definitions. For purposes of this subsection, the following defi-
    16  nitions shall apply:
    17    (A) "Excess federal gross income" means the amount  of  federal  gross
    18  income  from all sources for the taxable year reduced by the sum, not to
    19  exceed thirty thousand dollars, of those items included in federal gross
    20  income which consist of:
    21    (i) earned income,
    22    (ii) pension payments, including social security payments,
    23    (iii) interest, and
    24    (iv) dividends.
    25    (B) For purposes of this paragraph, the  term  "earned  income"  shall
    26  mean  wages,  salaries,  tips and other employee compensation, and those
    27  items of gross income which are includible in  the  computation  of  net
    28  earnings  from  self-employment.  For  the  purposes  of this paragraph,
    29  payments from the state's farmland protection program,  administered  by
    30  the  department of agriculture and markets, shall be included as federal
    31  gross income from farming.
    32    (3) Application of credit. If the amount of the credit  allowed  under
    33  this subsection for any taxable year shall exceed the taxpayer's tax for
    34  such  year,  the  excess shall be treated as an overpayment of tax to be
    35  credited or refunded in accordance with the provisions  of  section  six
    36  hundred  eighty-six of this article, provided, however, that no interest
    37  shall be paid thereon.
    38    § 3. This act shall take effect immediately and shall apply to taxable
    39  years beginning on and after January 1, 2018.