Bill Text: NY S07217 | 2017-2018 | General Assembly | Introduced


Bill Title: Creates a tax credit for companies that purchase New York-grown crops and use such crops in their value added products; such credit increases with increased net sales.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2018-06-20 - RECOMMITTED TO RULES [S07217 Detail]

Download: New_York-2017-S07217-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          7217
                    IN SENATE
                                     January 4, 2018
                                       ___________
        Introduced  by  Sen. RITCHIE -- read twice and ordered printed, and when
          printed to be committed to the Committee on Investigations and Govern-
          ment Operations
        AN ACT to amend the tax law, in relation to creating a  tax  credit  for
          companies  that  purchase  New  York-grown crops and use such crops in
          value added products
          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 44 to read
     2  as follows:
     3    § 44. NY crops for value added products tax  credit.  (a)  General.  A
     4  taxpayer subject to tax under article nine, nine-A or twenty-two of this
     5  chapter  shall  be  allowed  a  credit  against such tax pursuant to the
     6  provisions referenced in subdivision (e) of this section,  however,  the
     7  unused  portion  of  any tax credit claimed shall not be carried forward
     8  and applied in another tax year. The tax credit allowed pursuant to this
     9  section shall apply to taxable  years  beginning  on  or  after  January
    10  first, two thousand nineteen.
    11    (b)  Definitions. For the purposes of this section the following terms
    12  shall have the following meanings:
    13    (1) "crop" shall mean (i) fruits, including apples,  peaches,  grapes,
    14  cherries  and  berries, (ii) vegetables, including tomatoes, snap beans,
    15  cabbage, carrots, beets and onions, and (iii) potatoes and dry beans;
    16    (2) "value added product" shall mean the increase in the  fair  market
    17  value of a product resulting from the processing of such product;
    18    (3)  "net sales" shall mean the total sales of the business subject to
    19  tax.
    20    (4) "eligible taxpayer" means a corporation (including a  New  York  S
    21  corporation),  a  sole  proprietorship, a limited liability company or a
    22  partnership.
    23    (c) The amount of the credit shall  be  proscribed  according  to  the
    24  following schedule:
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13926-03-7

        S. 7217                             2
     1    (1) for twenty percent of net sales attributed to value added products
     2  that  used  a New York-grown crop, the credit shall be one thousand five
     3  hundred dollars.
     4    (2)  for forty percent of net sales attributed to value added products
     5  that used a New York-grown crop, the  credit  shall  be  three  thousand
     6  dollars.
     7    (3)  for sixty percent of net sales attributed to value added products
     8  that used a New York-grown  crop,  the  credit  shall  be  six  thousand
     9  dollars.
    10    (4) for eighty percent of net sales attributed to value added products
    11  that  used  a  New  York-grown crop, the credit shall be twelve thousand
    12  dollars.
    13    (5) for one hundred percent of net sales  attributed  to  value  added
    14  products  that  used  a New York-grown crop, the credit shall be twenty-
    15  five thousand dollars.
    16    (d) (1) Businesses claiming the NY crops for value added products  tax
    17  credit  shall  submit  a computer-generated report with tax returns that
    18  claim a tax credit.
    19    (2) Such report shall include the name of the producer and  the  phys-
    20  ical place of business where the products are produced.
    21    (3)  The  amount  paid  by  the grocer or business to the producer and
    22  amount of units purchased.
    23    (e) Cross-references. For application of the credit  provided  for  in
    24  this section, see the following provisions of this chapter:
    25    (1) Article 9: Section 187-t.
    26    (2) Article 9-A: Section 210-B, subdivision 53.
    27    (3) Article 22: Section 606, subsections (i) and (iii).
    28    §  2. Section 210-B of the tax law is amended by adding a new subdivi-
    29  sion 53 to read as follows:
    30    53. NY crops for value added products tax credit. A taxpayer shall  be
    31  allowed  a  credit,  to be computed as provided in section forty-four of
    32  this chapter against the tax imposed by this article. The credit allowed
    33  under this subdivision for any taxable year shall not reduce the tax due
    34  for such year to less than the fixed dollar minimum amount prescribed in
    35  paragraph (d) of subdivision one of section  two  hundred  ten  of  this
    36  article. However, if the amount of credit allowed under this subdivision
    37  for  any  taxable year reduces the tax to such amount or if the taxpayer
    38  otherwise pays tax based on the fixed dollar minimum amount, any  amount
    39  of  credit  thus not deductible in such taxable year shall be treated as
    40  an overpayment of tax to be credited or refunded in accordance with  the
    41  provisions of section one thousand eighty-six of this chapter. Provided,
    42  however, the provisions of subsection (c) of section one thousand eight-
    43  y-eight of this chapter notwithstanding, no interest shall be paid ther-
    44  eon.  The  tax  credit  allowed  pursuant to this section shall apply to
    45  taxable years beginning on or after January first,  two  thousand  nine-
    46  teen.
    47    §  3. Section 606 of the tax law is amended by adding a new subsection
    48  (iii) to read as follows:
    49    (iii) NY crops for value added products tax credit. A  taxpayer  shall
    50  be  allowed a credit to be computed as provided in section forty-four of
    51  this chapter against the tax imposed by this article. If the  amount  of
    52  the  credit  allowed  under  this  subsection for any taxable year shall
    53  exceed the taxpayer's tax for such year, the excess shall be treated  as
    54  an  overpayment of tax to be credited or refunded in accordance with the
    55  provisions of section six hundred eighty-six of this article,  provided,
    56  however,  that no interest shall be paid thereon. The tax credit allowed

        S. 7217                             3
     1  pursuant to this section shall apply to taxable years  beginning  on  or
     2  after January first, two thousand nineteen.
     3    §  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
     4  of the tax law is amended by adding a  new  clause  (xliv)  to  read  as
     5  follows:
     6  (xliv) NY crops for value added products     Amount of credit under
     7  tax credit under subsection (iii)            subdivision fifty-three of
     8                                               section two hundred ten-B
     9    §  5.  The tax law is amended by adding a new section 187-t to read as
    10  follows:
    11    § 187-t. NY crops for value added products tax credit.  (a)  Allowance
    12  of  credit.  A  taxpayer  shall  be  allowed a credit, to be computed as
    13  provided in section forty-four of this chapter against the  tax  imposed
    14  by this article.
    15    (b)  Application  of credit. The credit allowed under this subdivision
    16  for any taxable year shall not reduce the tax due for such year to  less
    17  than  the  fixed  dollar  minimum  amount prescribed in paragraph (d) of
    18  subdivision one of section two hundred ten of this chapter. However,  if
    19  the amount of credit allowed under this subdivision for any taxable year
    20  reduces  the  tax  to  such amount or if the taxpayer otherwise pays tax
    21  based on the fixed dollar minimum amount, any amount of credit thus  not
    22  deductible  in  such  taxable year shall be treated as an overpayment of
    23  tax to be credited or refunded in  accordance  with  the  provisions  of
    24  section  one thousand eighty-six of this chapter. Provided, however, the
    25  provisions of subsection (c) of section  one  thousand  eighty-eight  of
    26  this chapter notwithstanding, no interest shall be paid thereon. The tax
    27  credit  allowed  pursuant  to  this section shall apply to taxable years
    28  beginning on or after January first, two thousand nineteen.
    29    § 6. This act shall take effect immediately and shall apply to taxable
    30  years beginning on or after January 1, 2019.
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