Bill Text: NY S07851 | 2017-2018 | General Assembly | Introduced
Bill Title: Relates to creating a tax credit for companies that invest in certain dairy equipment and use such equipment to produce value added flavored or enhanced dairy products.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2018-06-06 - referred to ways and means [S07851 Detail]
Download: New_York-2017-S07851-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7851 IN SENATE March 5, 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 invest in certain dairy equipment and use such equip- ment to produce 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. Value added dairy investment tax credit. (a) General. A taxpayer 4 subject to tax under article nine, nine-A or twenty-two of this chapter 5 shall be allowed a credit against such tax pursuant to the provisions 6 referenced in subdivision (e) of this section, however, the unused 7 portion of any tax credit claimed shall not be carried forward and 8 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 eighteen. 11 (b) Definitions. For the purposes of this section the following terms 12 shall have the following meanings: 13 (1) "dairy product" shall mean dairy beverages, cheese, yogurt, frozen 14 dairy products or any additional product added by regulation by the 15 commissioner, in consultation with the commissioner of agriculture and 16 markets, that contains milk; 17 (2) "value added dairy product" shall mean the increase in the fair 18 market value of a dairy product resulting from the processing of such 19 into a flavored or enhanced dairy product processed wholly within the 20 state; 21 (3) "farm business" shall mean (i) a business with farm related income 22 of at least one thousand dollars in one of the last three years; or (ii) 23 a new business with farm related income; 24 (4) "eligible expenses" shall mean tools, equipment and supplies for 25 the manufacturing and packaging of value added dairy products; and 26 (5) "eligible taxpayer" means a corporation (including a New York S 27 corporation), a sole proprietorship, a limited liability company or a 28 partnership. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14985-03-8S. 7851 2 1 (c) The amount of the credit shall be for one hundred percent of up to 2 ten thousand dollars for eligible expenses associated with the 3 production of value added products for wholesale or retail sale within 4 five hundred miles of such taxpayer's farm business. 5 (d) (1) Businesses claiming the value added dairy product tax credit 6 shall submit a computer-generated report with tax returns that claim a 7 tax credit. 8 (2) Such report shall include (i) the name of the producer and the 9 physical place of business where the products are produced; (ii) the 10 amount paid by the eligible taxpayer for eligible expenses; and (iii) 11 the physical places of business such value added dairy products are 12 sold. 13 (e) Cross-references. For application of the credit provided for in 14 this section, see the following provisions of this chapter: 15 (1) Article 9: Section 187-q. 16 (2) Article 9-A: Section 210-B, subdivision 53. 17 (3) Article 22: Section 606, subsections (i) and (iii). 18 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 19 sion 53 to read as follows: 20 53. Value added dairy investment tax credit. A taxpayer shall be 21 allowed a credit, to be computed as provided in section forty-four of 22 this chapter against the tax imposed by this article. The credit allowed 23 under this subdivision for any taxable year shall not reduce the tax due 24 for such year to less than the fixed dollar minimum amount prescribed in 25 paragraph (d) of subdivision one of section two hundred ten of this 26 article. The tax credit allowed pursuant to this section shall apply to 27 taxable years beginning on or after January first, two thousand eigh- 28 teen. 29 § 3. Section 606 of the tax law is amended by adding a new subsection 30 (iii) to read as follows: 31 (iii) Value added dairy investment tax credit. A taxpayer shall be 32 allowed a credit to be computed as provided in section forty-four of 33 this chapter against the tax imposed by this article. The tax credit 34 allowed pursuant to this section shall apply to taxable years beginning 35 on or after January first, two thousand eighteen. 36 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 37 of the tax law is amended by adding a new clause (xliv) to read as 38 follows: 39 (xliv) NY crops for value added Amount of credit under 40 products tax credit under subdivision fifty-three of 41 subsection (iii) section two hundred ten-B 42 § 5. The tax law is amended by adding a new section 187-q to read as 43 follows: 44 § 187-q. Value added dairy investment tax credit. (a) Allowance of 45 credit. A taxpayer shall be allowed a credit, to be computed as provided 46 in section forty-four of this chapter against the tax imposed by this 47 article. 48 (b) Application of credit. The credit allowed under this subdivision 49 for any taxable year shall not reduce the tax due for such year to less 50 than the fixed dollar minimum amount prescribed in paragraph (d) of 51 subdivision one of section two hundred ten of this chapter. The tax 52 credit allowed pursuant to this section shall apply to taxable years 53 beginning on or after January first, two thousand eighteen. 54 § 6. This act shall take effect immediately and shall apply to taxable 55 years beginning on or after January 1, 2018.
