Bill Text: NY A05483 | 2023-2024 | General Assembly | Introduced

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Bill Title: Establishes a certified transitional tax credit for taxpayers that demonstrate their agricultural products were sold during a period of transition into USDA organic certification, under the Whole Foods Market IP. L.P. "responsibly grown" labelling program, or under the QAI and Hesco, Inc. "certified transitional" label.

Spectrum: Partisan Bill (Republican 5-0)

Status: (Introduced) 2024-01-03 - referred to ways and means [A05483 Detail]

Download: New_York-2023-A05483-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          5483

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                     March 13, 2023
                                       ___________

        Introduced  by M. of A. MAHER -- read once and referred to the Committee
          on Ways and Means

        AN ACT to amend the tax law, in relation to creating a certified transi-
          tional tax credit; and providing for the  repeal  of  such  provisions
          upon expiration thereof

          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 48  to  read
     2  as follows:
     3    §  48.  Certified  transitional tax credit. (a) Allowance of credit. A
     4  taxpayer, who is subject to tax under article nine, nine-A,  or  twenty-
     5  two  of  this  chapter shall be allowed a refundable credit against such
     6  tax to be computed as provided in this section, for the tax  imposed  by
     7  this  article  for taxable years after January first, two thousand twen-
     8  ty-four.
     9    (b) Value of credit. The amount of such credit shall be equal to twen-
    10  ty-five percent of the total pounds of  goods  sold  under  an  eligible
    11  program under subdivision (c) of this section, multiplied by one-half.
    12    (c)  Eligible  programs. Taxpayers that wish to claim this credit must
    13  demonstrate their agricultural products were sold  during  a  period  of
    14  transition into USDA organic certification, under the Whole Foods Market
    15  IP.  L.P.  "responsibly  grown"  labelling program, or under the QAI and
    16  Hesco, Inc.  "certified transitional" label.
    17    (d) Application of credit. The credit allowed under this  section  for
    18  any taxable year shall not reduce the tax due for such year to less than
    19  the  minimum tax fixed by this article. However, if the amount of credit
    20  allowed under this section for any taxable year reduces the tax to  such
    21  amount,  any  amount  of credit thus not deductible in such taxable year
    22  shall be treated as an overpayment of tax to be credited or refunded  in
    23  accordance  with  the  provisions  of section one thousand eighty-six of

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09175-01-3
        A. 5483                             2

     1  this chapter. Except as provided in subsection (c) of section one  thou-
     2  sand eighty-eight of this chapter, no interest shall be paid thereon.
     3    §  2.  The tax law is amended by adding a new section 187-r to read as
     4  follows:
     5    § 187-r. Certified transitional tax credit. (a) Allowance of credit. A
     6  taxpayer, who is subject to tax under this article,  article  nine-A  or
     7  twenty-two  of this chapter shall be allowed a refundable credit against
     8  such tax to be computed as provided in this section, for the tax imposed
     9  by this article for taxable years  after  January  first,  two  thousand
    10  twenty-four.
    11    (b) Value of credit. The amount of such credit shall be equal to twen-
    12  ty-five  percent  of  the  total  pounds of goods sold under an eligible
    13  program under subdivision (c) of this section, multiplied by one-half.
    14    (c) Eligible programs. Taxpayers that wish to claim this  credit  must
    15  demonstrate  their  agricultural  products  were sold during a period of
    16  transition into USDA organic certification, under the Whole Foods Market
    17  IP. L.P. "responsibly grown" labelling program, or  under  the  QAI  and
    18  Hesco, Inc.  "certified transitional" label.
    19    (d)  Application  of credit. The credit allowed under this section for
    20  any taxable year shall not reduce the tax due for such year to less than
    21  the minimum tax fixed by this article. However, if the amount of  credit
    22  allowed  under this section for any taxable year reduces the tax to such
    23  amount, any amount of credit thus not deductible in  such  taxable  year
    24  shall  be treated as an overpayment of tax to be credited or refunded in
    25  accordance with the provisions of section  one  thousand  eighty-six  of
    26  this  chapter. Except as provided in subsection (c) of section one thou-
    27  sand eighty-eight of this chapter, no interest shall be paid thereon.
    28    § 3. Section 210-B of the tax law is amended by adding a new  subdivi-
    29  sion 59 to read as follows:
    30    59.  Certified  transitional  tax  credit. (a) Allowance of credit.  A
    31  taxpayer, who is subject to tax under article nine, nine-A,  or  twenty-
    32  two  of  this  chapter shall be allowed a refundable credit against such
    33  tax to be computed as provided in this subdivision, for the tax  imposed
    34  by  this  article  for  taxable  years after January first, two thousand
    35  twenty-four.
    36    (b) Value of credit. The amount of such credit shall be equal to twen-
    37  ty-five percent of the total pounds of  goods  sold  under  an  eligible
    38  program under paragraph (c) of this subdivision, multiplied by one-half.
    39    (c)  Eligible  programs. Taxpayers that wish to claim this credit must
    40  demonstrate their agricultural products were sold  during  a  period  of
    41  transition into USDA organic certification, under the Whole Foods Market
    42  IP.  L.P.  "responsibly  grown"  labelling program, or under the QAI and
    43  Hesco, Inc.  "certified transitional" label.
    44    (d) Application of credit. The credit allowed under  this  subdivision
    45  for  any taxable year shall not reduce the tax due for such year to less
    46  than the minimum tax fixed by this article. However, if  the  amount  of
    47  credit  allowed  under this subdivision for any taxable year reduces the
    48  tax to such amount, any amount of credit thus  not  deductible  in  such
    49  taxable year shall be treated as an overpayment of tax to be credited or
    50  refunded  in  accordance  with  the  provisions  of section one thousand
    51  eighty-six of this chapter. Except as  provided  in  subsection  (c)  of
    52  section  one thousand eighty-eight of this chapter, no interest shall be
    53  paid thereon.
    54    § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
    55  of the tax law is amended by adding a new clause (l) to read as follows:
    56  (l) Certified transitional           Amount of credit under
        A. 5483                             3

     1  tax credit under section             subdivision fifty-nine of
     2  forty-eight                          section two hundred ten-B
     3    §  5.  This  act shall take effect January 1, 2024, and shall apply to
     4  taxable years beginning on or after such date, and shall expire  January
     5  1,  2030  when upon such date the provisions of this act shall be deemed
     6  repealed. Effective immediately, the addition, amendment  and/or  repeal
     7  of  any rule or regulation by the department of agriculture and markets,
     8  in conjunction with the department  of  taxation  and  finance  that  is
     9  necessary  for  the implementation of this act on its effective date are
    10  authorized to be made and completed on or before such effective date.