Bill Text: NY A04388 | 2017-2018 | General Assembly | Amended


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

Spectrum: Slight Partisan Bill (Democrat 16-7)

Status: (Introduced) 2018-03-08 - print number 4388b [A04388 Detail]

Download: New_York-2017-A04388-Amended.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                         4388--B
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                    February 2, 2017
                                       ___________
        Introduced  by  M.  of  A.  MAGEE, CROUCH, FINCH, GUNTHER, HAWLEY, OTIS,
          L. ROSENTHAL, JENNE, SKOUFIS,  STIRPE,  BARCLAY,  JAFFEE,  MAGNARELLI,
          SEPULVEDA,  PEOPLES-STOKES,  TITONE, DiPIETRO -- Multi-Sponsored by --
          M. of A.  BUTLER, COOK, GOTTFRIED, LUPARDO, PALMESANO, THIELE --  read
          once  and  referred  to  the  Committee on Ways and Means -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee -- recommitted to the Committee on Ways and Means in
          accordance with Assembly Rule 3, sec. 2 -- committee discharged,  bill
          amended,  ordered reprinted as amended and recommitted to said commit-
          tee
        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 53 to read as follows:
     3    53.  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; provided,
    11  however,  that  such price shall not exceed the fair market value of the
    12  real property. A taxpayer who sells or rents their agricultural land  to
    13  a relative shall be eligible for the credit established in this section.
    14    (b)  For  purposes  of  this  subdivision, "young farmer" shall mean a
    15  farmer who is at least eighteen years old and who has  not  produced  an
    16  agricultural product for more than ten consecutive years, where agricul-
    17  tural product means any agricultural or aquacultural product of the soil
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07443-05-8

        A. 4388--B                          2
     1  or  water,  including but not limited to fruits, vegetables, eggs, dairy
     2  products, meat and meat products, poultry and poultry products, fish and
     3  fish products, grain and grain products, honey, nuts,  preserves,  maple
     4  sap  products,  apple cider, fruit juice, horticultural specialties, and
     5  Christmas trees and who will materially and substantially participate in
     6  the production of an agricultural project.
     7    (c) Prior to sale, the seller shall convey to the department of  agri-
     8  culture  and  markets, an easement, the terms of which limit development
     9  of the land to agricultural business, principally farming, as such  term
    10  is  defined  in  paragraph nineteen of subdivision (b) of section eleven
    11  hundred one of this chapter. The easement shall expire not less than ten
    12  years from the date of sale.
    13    § 2. Section 606 of the tax law is amended by adding a new  subsection
    14  (ccc) to read as follows:
    15    (ccc)  Credit  for  the  sale  or rent of agricultural land to a young
    16  farmer. (1) Allowance of credit. A taxpayer whose federal  gross  income
    17  from  farming  for  the  taxable  year  is at least two-thirds of excess
    18  federal gross income shall be allowed a credit against the  tax  imposed
    19  by  this  article for the sale or rent of agricultural land or equipment
    20  to a young farmer, as defined by section two hundred ten-B of this chap-
    21  ter. Such credit shall be ten percent of the purchase  price  of  rental
    22  amount  of  the  agricultural land, and shall be allowed notwithstanding
    23  subsection (kk) of this section.
    24    (2) Definitions. For purposes of this subsection, the following  defi-
    25  nitions shall apply:
    26    (A)  "Excess  federal  gross income" means the amount of federal gross
    27  income from all sources for the taxable year reduced by the sum, not  to
    28  exceed thirty thousand dollars, of those items included in federal gross
    29  income which consist of:
    30    (i) earned income,
    31    (ii) pension payments, including social security payments,
    32    (iii) interest, and
    33    (iv) dividends.
    34    (B)  For  purposes  of  this paragraph, the term "earned income" shall
    35  mean wages, salaries, tips and other employee  compensation,  and  those
    36  items  of  gross  income  which are includible in the computation of net
    37  earnings from self-employment.  For  the  purposes  of  this  paragraph,
    38  payments  from  the state's farmland protection program, administered by
    39  the department of agriculture and markets, shall be included as  federal
    40  gross income from farming.
    41    (3)  Application  of credit. If the amount of the credit allowed under
    42  this subsection for any taxable year shall exceed the taxpayer's tax for
    43  such year, the excess shall be treated as an overpayment of  tax  to  be
    44  credited  or  refunded  in accordance with the provisions of section six
    45  hundred eighty-six of this article, provided, however, that no  interest
    46  shall be paid thereon.
    47    § 3. This act shall take effect immediately and shall apply to taxable
    48  years beginning on and after January 1, 2019.
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