Establishes a personal income tax credit for the cost of replacing concord grapevines by farmers

1 Co-sponsor

• Michael H. Ranzenhofer

BILL NUMBER:S2682A

Title of bill

An act to amend the tax law, in relation to establishing a grapevine replacement personal income tax credit

Purpose

This bill establishes a refundable personal income tax credit to farmers for the cost of replacing Concord grapevines with a new grape variety.

Summary of provisions

Section 606 of the Tax Law is amended to allow for a refundable personal income tax credit to farmers for the cost of grapevines that are replacing existing Concord grapevines, provided that the new grapevines are not of any Concord variety.

Justification

This legislation was created to encourage the planting of new grape varieties in response to New York's evolving grape and wine market. Many New York grape producers have built their businesses on the native Concord grape which is used in juices; jellies and other food products. Concord grape growers are currently experiencing a severe glut in national grape juice concentrate markets, due to overproduction in California, and are seeking innovative ways to continue farming. With a growing interest and national demand for New York wines, grape growers are turning to vinifera grapes and other high-quality hybrid varieties which offer consistent fruit quality and production. This legislation provides an incentive for farmers to pursue this costly but worthwhile investment to help diversify grape acreage and remain competitive in the global marketplace.

Legislative history

2011,2012: S.776 Referred to Investigations and Government Operations 2009,2010: S.2487 Referred to Investigations and Government Operations 2007,2008: S.2774/A.5374 Referred to Investigations and Government Operations 2006: S.7235/A.11539 Referred to Investigations and Government Operations

Fiscal implications

Undetermined at this time.

EFFECTIVE DATE

Immediately.