Bill Text: NY S01664 | 2015-2016 | General Assembly | Introduced
Bill Title: Establishes business franchise and personal income tax credits for expenses of natural resources improvement projects on farmlands and forestlands.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced - Dead) 2016-01-20 - RECOMMIT, ENACTING CLAUSE STRICKEN [S01664 Detail]
Download: New_York-2015-S01664-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
1664
2015-2016 Regular Sessions
I N S E N A T E
January 13, 2015
___________
Introduced by Sen. YOUNG -- (at request of the Legislative Commission on
Rural Resources) -- 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 establishing a business
franchise and personal income tax credit for natural resources
improvement projects upon farmlands and forestlands
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Subdivision 9 of section 208 of the tax law is amended by
2 adding a new paragraph (u) to read as follows:
3 (U) IN THE EVENT THE TAXPAYER CLAIMS THE NATURAL RESOURCE IMPROVEMENT
4 CREDIT FOR FARMLANDS AND FORESTLANDS ESTABLISHED PURSUANT TO SUBDIVISION
5 FORTY-NINE OF SECTION TWO HUNDRED TEN-B OF THIS ARTICLE, ENTIRE NET
6 INCOME SHALL BE INCREASED BY THE AMOUNT OF ANY EXPENDITURES DEFINED IN
7 INTERNAL REVENUE CODE SECTION 175(C)(1) THAT THE TAXPAYER DEDUCTED FROM
8 ITS TOTAL NET INCOME ON ITS FEDERAL TAX RETURN FOR THE TAX YEAR.
9 S 2. Section 210-B of the tax law is amended by adding a new subdivi-
10 sion 49 to read as follows:
11 49. NATURAL RESOURCE IMPROVEMENT CREDIT FOR FARMLANDS AND FORESTLANDS.
12 (A) ALLOWANCE OF CREDIT. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY
13 FIRST, TWO THOUSAND SIXTEEN, A TAXPAYER SHALL BE ALLOWED A CREDIT
14 AGAINST THE TAX IMPOSED BY THIS ARTICLE IN AN AMOUNT EQUAL TO
15 TWENTY-FIVE PERCENT OF THE TAXPAYER'S ELIGIBLE EXPENDITURES DURING THE
16 TAX YEAR FOR A NATURAL RESOURCES IMPROVEMENT PROJECT. PROVIDED, HOWEVER,
17 THAT THE CREDIT GRANTED FOR ANY NATURAL RESOURCE IMPROVEMENT PROJECT
18 PURSUANT TO THIS SUBDIVISION SHALL NOT EXCEED FIFTY THOUSAND DOLLARS.
19 (B) DEFINITIONS. FOR THE PURPOSES OF THIS SUBDIVISION, THE FOLLOWING
20 DEFINITIONS SHALL APPLY:
21 (1) "ELIGIBLE EXPENDITURES" SHALL MEAN FEES FOR ARCHITECTURAL, ARCHEO-
22 LOGICAL, GEOLOGICAL AND ENGINEERING SERVICES; THE COSTS OF DEVELOPING
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06118-01-5
S. 1664 2
1 PLANS AND SPECIFICATIONS; FEES FOR CONSULTANT AND LEGAL SERVICES; AND
2 ANY EXPENDITURE DEFINED IN INTERNAL REVENUE CODE SECTION 175(C)(1),
3 INCLUDING EXPENDITURES RELATED TO THE APPLICATION OF LIME AND FERTILIZ-
4 ER, IMPROVEMENT OF DRAINAGE IN THE CASE OF OPEN AREAS THAT HAVE BEEN
5 USED FOR AGRICULTURAL PURPOSES AT ANY TIME IN THE PAST, AND EXPENDITURES
6 RELATED TO THE DECONSTRUCTION AND REMOVAL OF FENCES, STREAM CROSSINGS
7 AND NECESSARY RIPARIAN BUFFERS AND FORESTLAND IMPROVEMENTS AS REQUIRED
8 BY THE NATURAL RESOURCES IMPROVEMENT PROJECT.
9 (2) "FARMLAND AND FORESTLAND" SHALL MEAN LAND WHICH, DURING THE TAXA-
10 BLE YEAR IN WHICH THE CREDIT IS CLAIMED PURSUANT TO THIS SUBDIVISION, IS
11 ELIGIBLE FOR AN AGRICULTURAL ASSESSMENT PURSUANT TO ARTICLE
12 TWENTY-FIVE-AA OF THE AGRICULTURE AND MARKETS LAW OR ELIGIBLE FOR A
13 FOREST ASSESSMENT UNDER SECTION FOUR HUNDRED EIGHTY-A OF THE REAL PROP-
14 ERTY TAX LAW.
15 (3) "NATURAL RESOURCES IMPROVEMENT PROJECT" SHALL MEAN THE RESTORATION
16 OF FARMLAND AND FORESTLAND FOR THE PRODUCTION OF AGRICULTURAL PERENNIAL
17 CROPS, INCLUDING THOSE CROPS INTENDED FOR ENERGY PRODUCTION PURPOSES, BY
18 IMPROVING SUCH LAND WHICH HAS NOT BEEN USED IN AGRICULTURAL PRODUCTION
19 FOR TWO OR MORE YEARS PRIOR TO THE INITIATION OF SUCH RESTORATION OR
20 FORESTLAND IMPROVEMENTS REQUIRED IN THE MANAGEMENT PLAN.
21 (C) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
22 FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
23 THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF
24 SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF
25 CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE
26 TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
27 TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
28 REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
29 EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF
30 SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
31 NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
32 S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
33 of the tax law is amended by adding a new clause (xli) to read as
34 follows:
35 (XLI) NATURAL RESOURCE AMOUNT OF CREDIT FOR ELIGIBLE
36 IMPROVEMENT CREDIT FOR EXPENDITURES FOR A NATURAL
37 FARMLANDS AND RESOURCES IMPROVEMENT PROJECT
38 FORESTLANDS UNDER UNDER SUBDIVISION FORTY-NINE
39 SUBSECTION (CCC) OF SECTION TWO HUNDRED TEN-B
40 S 4. Section 606 of the tax law is amended by adding a new subsection
41 (ccc) to read as follows:
42 (CCC) NATURAL RESOURCE IMPROVEMENT CREDIT FOR FARMLANDS AND FOREST-
43 LANDS. (1) ALLOWANCE OF CREDIT. FOR TAXABLE YEARS BEGINNING ON OR AFTER
44 JANUARY FIRST, TWO THOUSAND SIXTEEN, A TAXPAYER SHALL BE ALLOWED A CRED-
45 IT AGAINST THE TAX IMPOSED BY THIS ARTICLE IN AN AMOUNT EQUAL TO TWEN-
46 TY-FIVE PERCENT OF THE TAXPAYER'S ELIGIBLE EXPENDITURES DURING THE TAX
47 YEAR FOR A NATURAL RESOURCE IMPROVEMENT PROJECT. PROVIDED, HOWEVER, THAT
48 THE CREDIT GRANTED FOR ANY NATURAL RESOURCE IMPROVEMENT PROJECT PURSUANT
49 TO THIS SUBSECTION SHALL NOT EXCEED FIFTY THOUSAND DOLLARS.
50 (2) DEFINITIONS. FOR THE PURPOSES OF THIS SUBSECTION, THE FOLLOWING
51 DEFINITIONS SHALL APPLY:
52 (A) "ELIGIBLE EXPENDITURES" SHALL MEAN FEES FOR ARCHITECTURAL, ARCHEO-
53 LOGICAL, GEOLOGICAL AND ENGINEERING SERVICES; THE COSTS OF DEVELOPING
54 PLANS AND SPECIFICATIONS; FEES FOR CONSULTANT AND LEGAL SERVICES; AND
55 ANY EXPENDITURE DEFINED IN INTERNAL REVENUE CODE SECTION 175(C)(1),
56 INCLUDING EXPENDITURES RELATED TO THE APPLICATION OF LIME AND FERTILIZ-
S. 1664 3
1 ER, IMPROVEMENT OF DRAINAGE IN THE CASE OF OPEN AREAS THAT HAVE BEEN
2 USED FOR AGRICULTURAL PURPOSES AT ANY TIME IN THE PAST, AND EXPENDITURES
3 RELATED TO THE DECONSTRUCTION AND REMOVAL OF FENCES, STREAM CROSSINGS
4 AND NECESSARY RIPARIAN BUFFERS AND FORESTLAND IMPROVEMENTS AS REQUIRED
5 BY THE NATURAL RESOURCE IMPROVEMENT PROJECT.
6 (B) "FARMLAND AND FORESTLAND" SHALL MEAN LAND WHICH, DURING THE TAXA-
7 BLE YEAR IN WHICH THE CREDIT IS CLAIMED PURSUANT TO THIS SUBSECTION, IS
8 ELIGIBLE FOR AN AGRICULTURAL ASSESSMENT PURSUANT TO ARTICLE
9 TWENTY-FIVE-AA OF THE AGRICULTURE AND MARKETS LAW OR ELIGIBLE FOR A
10 FOREST ASSESSMENT UNDER SECTION FOUR HUNDRED EIGHTY-A OF THE REAL PROP-
11 ERTY TAX LAW.
12 (C) "NATURAL RESOURCE IMPROVEMENT PROJECT" SHALL MEAN THE RESTORATION
13 OF FARMLAND AND FORESTLAND FOR THE PRODUCTION OF AGRICULTURAL PERENNIAL
14 CROPS, INCLUDING THOSE CROPS INTENDED FOR ENERGY PRODUCTION PURPOSES, BY
15 IMPROVING SUCH LAND WHICH HAS NOT BEEN USED IN AGRICULTURAL PRODUCTION
16 FOR TWO OR MORE YEARS PRIOR TO THE COMPLETION OF SUCH RESTORATION OR HAD
17 A COMMERCIAL TIMBER HARVEST WITHIN THE PAST FIVE YEARS.
18 (3) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
19 THIS SUBSECTION SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE
20 TAXPAYER MAY RECEIVE AND THE COMPTROLLER, SUBJECT TO A CERTIFICATE OF
21 THE COMMISSIONER, SHALL PAY AS AN OVERPAYMENT, WITHOUT INTEREST, THE
22 AMOUNT OF SUCH EXCESS.
23 S 5. Paragraph 4 of subsection (b) of section 612 of the tax law, as
24 amended by chapter 406 of the laws of 1990, is amended to read as
25 follows:
26 (4) Interest on indebtedness incurred or continued to purchase or
27 carry obligations or securities the interest on which is exempt from tax
28 under this article, to the extent deductible in determining federal
29 adjusted gross income; PROVIDED THAT IN THE EVENT THE TAXPAYER CLAIMS
30 THE NATURAL RESOURCE IMPROVEMENT CREDIT FOR FARMLANDS AND FORESTLANDS
31 ESTABLISHED PURSUANT TO SUBSECTION (CCC) OF SECTION SIX HUNDRED SIX OF
32 THIS ARTICLE, THE AMOUNT OF ANY EXPENDITURES DEFINED IN INTERNAL REVENUE
33 CODE SECTION 175(C)(1) THAT THE TAXPAYER DEDUCTED FROM HIS OR HER FEDER-
34 AL GROSS INCOME ON HIS OR HER FEDERAL TAX RETURN FOR THE TAX YEAR.
35 S 6. This act shall take effect immediately and shall apply to resto-
36 ration projects initiated on or after such date.
