Bill Text: NY A09651 | 2023-2024 | General Assembly | Introduced
Bill Title: Expands a certain tax credit for farmers to include the cost of construction of housing for farm workers.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced) 2024-03-27 - referred to ways and means [A09651 Detail]
Download: New_York-2023-A09651-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 9651 IN ASSEMBLY March 27, 2024 ___________ Introduced by M. of A. BUTTENSCHON -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to expanding a certain tax credit for farmers to include the cost of construction housing for farm workers The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subparagraph (i) of paragraph (b) of subdivision 1 of 2 section 210-B of the tax law, as amended by section 2 of part P of chap- 3 ter 59 of the laws of 2017, is amended to read as follows: 4 (i) A credit shall be allowed under this subdivision with respect to 5 tangible personal property and other tangible property, including build- 6 ings and structural components of buildings, which are: depreciable 7 pursuant to section one hundred sixty-seven of the internal revenue 8 code, have a useful life of four years or more, are acquired by purchase 9 as defined in section one hundred seventy-nine (d) of the internal 10 revenue code, have a situs in this state and are (A) principally used by 11 the taxpayer in the production of goods by manufacturing, processing, 12 assembling, refining, mining, extracting, farming, agriculture, horti- 13 culture, floriculture, viticulture or commercial fishing, (B) industrial 14 waste treatment facilities or air pollution control facilities, used in 15 the taxpayer's trade or business, (C) research and development property, 16 or (D) principally used in the ordinary course of the taxpayer's trade 17 or business as a broker or dealer in connection with the purchase or 18 sale (which shall include but not be limited to the issuance, entering 19 into, assumption, offset, assignment, termination, or transfer) of 20 stocks, bonds or other securities as defined in section four hundred 21 seventy-five (c)(2) of the Internal Revenue Code, or of commodities as 22 defined in section four hundred seventy-five (e) of the Internal Revenue 23 Code, (E) principally used in the ordinary course of the taxpayer's 24 trade or business of providing investment advisory services for a regu- 25 lated investment company as defined in section eight hundred fifty-one 26 of the Internal Revenue Code, or lending, loan arrangement or loan orig- 27 ination services to customers in connection with the purchase or sale 28 (which shall include but not be limited to the issuance, entering into, 29 assumption, offset, assignment, termination, or transfer) of securities 30 as defined in section four hundred seventy-five (c)(2) of the Internal EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14888-01-4A. 9651 2 1 Revenue Code, (F) principally used in the ordinary course of the taxpay- 2 er's business as an exchange registered as a national securities 3 exchange within the meaning of sections 3(a)(1) and 6(a) of the Securi- 4 ties Exchange Act of 1934 or a board of trade as defined in subparagraph 5 one of paragraph (a) of section fourteen hundred ten of the not-for-pro- 6 fit corporation law or as an entity that is wholly owned by one or more 7 such national securities exchanges or boards of trade and that provides 8 automation or technical services thereto, or (G) principally used as a 9 qualified film production facility including qualified film production 10 facilities having a situs in an empire zone designated as such pursuant 11 to article eighteen-B of the general municipal law, where the taxpayer 12 is providing three or more services to any qualified film production 13 company using the facility, including such services as a studio lighting 14 grid, lighting and grip equipment, multi-line phone service, broadband 15 information technology access, industrial scale electrical capacity, 16 food services, security services, and heating, ventilation and air 17 conditioning. For purposes of clauses (D), (E) and (F) of this subpara- 18 graph, property purchased by a taxpayer affiliated with a regulated 19 broker, dealer, registered investment advisor, national securities 20 exchange or board of trade, is allowed a credit under this subdivision 21 if the property is used by its affiliated regulated broker, dealer, 22 registered investment advisor, national securities exchange or board of 23 trade in accordance with this subdivision. For purposes of determining 24 if the property is principally used in qualifying uses, the uses by the 25 taxpayer described in clauses (D) and (E) of this subparagraph may be 26 aggregated. In addition, the uses by the taxpayer, its affiliated regu- 27 lated broker, dealer and registered investment advisor under either or 28 both of those clauses may be aggregated. Provided, however, a taxpayer 29 shall not be allowed the credit provided by clauses (D), (E) and (F) of 30 this subparagraph unless the property is first placed in service before 31 October first, two thousand fifteen and (i) eighty percent or more of 32 the employees performing the administrative and support functions 33 resulting from or related to the qualifying uses of such equipment are 34 located in this state or (ii) the average number of employees that 35 perform the administrative and support functions resulting from or 36 related to the qualifying uses of such equipment and are located in this 37 state during the taxable year for which the credit is claimed is equal 38 to or greater than ninety-five percent of the average number of employ- 39 ees that perform these functions and are located in this state during 40 the thirty-six months immediately preceding the year for which the cred- 41 it is claimed, or (iii) the number of employees located in this state 42 during the taxable year for which the credit is claimed is equal to or 43 greater than ninety percent of the number of employees located in this 44 state on December thirty-first, nineteen hundred ninety-eight or, if the 45 taxpayer was not a calendar year taxpayer in nineteen hundred ninety- 46 eight, the last day of its first taxable year ending after December 47 thirty-first, nineteen hundred ninety-eight. If the taxpayer becomes 48 subject to tax in this state after the taxable year beginning in nine- 49 teen hundred ninety-eight, then the taxpayer is not required to satisfy 50 the employment test provided in the preceding sentence of this subpara- 51 graph for its first taxable year. For purposes of clause (iii) of this 52 subparagraph the employment test will be based on the number of employ- 53 ees located in this state on the last day of the first taxable year the 54 taxpayer is subject to tax in this state. If the uses of the property 55 must be aggregated to determine whether the property is principally used 56 in qualifying uses, then either each affiliate using the property mustA. 9651 3 1 satisfy this employment test or this employment test must be satisfied 2 through the aggregation of the employees of the taxpayer, its affiliated 3 regulated broker, dealer, and registered investment adviser using the 4 property. For purposes of clause (A) of this subparagraph, tangible 5 personal property and other tangible property shall not include property 6 principally used by the taxpayer in the production or distribution of 7 electricity, natural gas after extraction from wells, steam, or water 8 delivered through pipes and mains. For purposes of the credit allowed by 9 clause (A) of this subparagraph, for a taxpayer that is an eligible 10 farmer as provided in paragraph (a-1) of this subdivision, the eligible 11 cost of goods shall include the cost of standard construction materials 12 and labor used in the construction of residential housing occupied farm 13 workers employed by the taxpayer to provide labor in the production of 14 the qualifying product produced by the taxpayer, provided such costs 15 satisfy the other requirements of this subparagraph. 16 § 2. Subparagraph (A) of paragraph 2 of subsection (a) of section 606 17 of the tax law, as amended by section 3 of part P of chapter 59 of the 18 laws of 2017, is amended to read as follows: 19 (A) A credit shall be allowed under this subsection with respect to 20 tangible personal property and other tangible property, including build- 21 ings and structural components of buildings, which are: depreciable 22 pursuant to section one hundred sixty-seven of the internal revenue 23 code, have a useful life of four years or more, are acquired by purchase 24 as defined in section one hundred seventy-nine (d) of the internal 25 revenue code, have a situs in this state and are (i) principally used by 26 the taxpayer in the production of goods by manufacturing, processing, 27 assembling, refining, mining, extracting, farming, agriculture, horti- 28 culture, floriculture, viticulture or commercial fishing, (ii) indus- 29 trial waste treatment facilities or air pollution control facilities, 30 used in the taxpayer's trade or business, (iii) research and development 31 property, (iv) principally used in the ordinary course of the taxpayer's 32 trade or business as a broker or dealer in connection with the purchase 33 or sale (which shall include but not be limited to the issuance, enter- 34 ing into, assumption, offset, assignment, termination, or transfer) of 35 stocks, bonds or other securities as defined in section four hundred 36 seventy-five (c)(2) of the Internal Revenue Code, or of commodities as 37 defined in section 475(e) of the Internal Revenue Code, (v) principally 38 used in the ordinary course of the taxpayer's trade or business of 39 providing investment advisory services for a regulated investment compa- 40 ny as defined in section eight hundred fifty-one of the Internal Revenue 41 Code, or lending, loan arrangement or loan origination services to 42 customers in connection with the purchase or sale (which shall include 43 but not be limited to the issuance, entering into, assumption, offset, 44 assignment, termination, or transfer) of securities as defined in 45 section four hundred seventy-five (c)(2) of the Internal Revenue Code, 46 or (vi) principally used as a qualified film production facility includ- 47 ing qualified film production facilities having a situs in an empire 48 zone designated as such pursuant to article eighteen-B of the general 49 municipal law, where the taxpayer is providing three or more services to 50 any qualified film production company using the facility, including such 51 services as a studio lighting grid, lighting and grip equipment, multi- 52 line phone service, broadband information technology access, industrial 53 scale electrical capacity, food services, security services, and heat- 54 ing, ventilation and air conditioning. For purposes of clauses (iv) and 55 (v) of this subparagraph, property purchased by a taxpayer affiliated 56 with a regulated broker, dealer, or registered investment adviser isA. 9651 4 1 allowed a credit under this subsection if the property is used by its 2 affiliated regulated broker, dealer or registered investment adviser in 3 accordance with this subsection. For purposes of determining if the 4 property is principally used in qualifying uses, the uses by the taxpay- 5 er described in clauses (iv) and (v) of this subparagraph may be aggre- 6 gated. In addition, the uses by the taxpayer, its affiliated regulated 7 broker, dealer and registered investment adviser under either or both of 8 those clauses may be aggregated. Provided, however, a taxpayer shall not 9 be allowed the credit provided by clauses (iv) and (v) of this subpara- 10 graph unless (I) eighty percent or more of the employees performing the 11 administrative and support functions resulting from or related to the 12 qualifying uses of such equipment are located in this state, or (II) the 13 average number of employees that perform the administrative and support 14 functions resulting from or related to the qualifying uses of such 15 equipment and are located in this state during the taxable year for 16 which the credit is claimed is equal to or greater than ninety-five 17 percent of the average number of employees that perform these functions 18 and are located in this state during the thirty-six months immediately 19 preceding the year for which the credit is claimed, or (III) the number 20 of employees located in this state during the taxable year for which the 21 credit is claimed is equal to or greater than ninety percent of the 22 number of employees located in this state on December thirty-first, 23 nineteen hundred ninety-eight or, if the taxpayer was not a calendar 24 year taxpayer in nineteen hundred ninety-eight, the last day of its 25 first taxable year ending after December thirty-first, nineteen hundred 26 ninety-eight. If the taxpayer becomes subject to tax in this state after 27 the taxable year beginning in nineteen hundred ninety-eight, then the 28 taxpayer is not required to satisfy the employment test provided in the 29 preceding sentence of this subparagraph for its first taxable year. For 30 the purposes of clause (III) of this subparagraph the employment test 31 will be based on the number of employees located in this state on the 32 last day of the first taxable year the taxpayer is subject to tax in 33 this state. If the uses of the property must be aggregated to determine 34 whether the property is principally used in qualifying uses, then either 35 each affiliate using the property must satisfy this employment test or 36 this employment test must be satisfied through the aggregation of the 37 employees of the taxpayer, its affiliated regulated broker, dealer, and 38 registered investment adviser using the property. For purposes of clause 39 (i) of this subparagraph, tangible personal property and other tangible 40 property shall not include property principally used by the taxpayer in 41 the production or distribution of electricity, natural gas after 42 extraction from wells, steam, or water delivered through pipes and 43 mains. For purposes of the credit allowed by clause (i) of this subpara- 44 graph, for a taxpayer that is an eligible farmer as provided in para- 45 graph one-a of this subsection, the eligible cost of goods shall include 46 the cost of standard construction materials and labor used in the 47 construction of residential housing occupied farm workers employed by 48 the taxpayer to provide labor in the production of the qualifying prod- 49 uct produced by the taxpayer, provided such costs satisfy the other 50 requirements of this subparagraph. 51 § 3. This act shall take effect on the first of January next succeed- 52 ing the date upon which it shall have become a law and shall apply to 53 tax years commencing on and after such effective date. Effective imme- 54 diately, the addition, amendment and/or repeal of any rule or regulation 55 necessary for the implementation of this act on its effective date are 56 authorized to be made and completed on or before such effective date.