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. LBD13926-03-7S. 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 allowedS. 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.