Provides that excess investment tax credit amounts may be refundable to operators of a farm operation

3 Co-sponsors

• John J. Bonacic
• Thomas Croci
• Thomas F. O'Mara

Title of bill

An act to amend the tax law, in relation to providing that excess investment tax credit amounts may be refundable to operators of a farm operation

Purpose

To allow farmers to receive the investment tax credit as a fully refundable credit.

Summary of provisions

Section 1: Amends subdivision 1 of section 210-B of the tax law to provide that excess investment tax credit amounts may be refundable to operators of a farm operation. Section 2: Amends subsection (a) of section 606 of the tax law to provide that excess investment tax credit amounts may be refundable to operators of a farm operation. Section 3: Provides an immediate effective date and deems that it shall be deemed to have been in full force and effect on and after January 1, 2016.

Justification

New York is home to some 38,000 farms encompassing roughly 7.8 million acres of cropland, pasture and woodlands. These farms produce nearly $3.1 billion annually in direct economic output and probably double or triple that in indirect economic benefits with the farming and food industry employing over 425,000 people. Given the enormous economic impact that agriculture has on the economy of this State, we must do everything we can to ensure that our farm operations survive.

When farmers make long term investments in their operations they are eligible for the investment tax credit (ITC). However, unlike the agricultural school tax credit, the investment tax credit is not refundable and, thereby, is of no benefit to farmers who have no taxable income. To remedy this and to assist our farmers with continuing to make investment in their agri-enterprises, this bill would allow farmers to receive the ITC as a fully refundable credit, similar to the school tax credit. By making this small change, our farmers would receive a valuable benefit that would enable them to continue to update, modernize and invest in their farms.

Legislative history

2015: S.3065 Referred to Investigations & Government Operations 2013,2014: S.2083A Referred to Investigations & Government Operations 2011,2012: S.784/A.386 Reported to Investigations & Operations Committee 2009,2010: S.2431A/A.1088A Reported to Investigations & Operations Committee 2007,2008: S.2036A/A.1233B Passed Senate 2006:S.7164/A.9279 Referred to Investigations & Operations Committee

Fiscal implications

To be determined.

Effective date

Effective immediately, and shall be deemed to have been in full force and effect on and after January 1, 2016.