What's happening
This bill increases the New York state income tax deduction for farm businesses with less than $350,000 in net farm income to 20%.
Why it matters
Targets small farm businesses with less than $350,000 in net farm income. , making them eligible for a much larger state income tax deduction (20%), which could significantly lower their tax liability and improve cash flow.
Expands eligibility to more types of farm business entities. , including sole proprietors, limited liability companies, partnerships, and S corporations, ensuring that a broad range of small-scale farm operations benefit, not just traditional family farms.
Aims to strengthen the economic viability of small farms. , helping them compete with larger agribusinesses and withstand financial pressures, which may support local food systems, rural employment, and preservation of farmland.
Could encourage reinvestment in farm operations or succession planning. , as the higher deduction may free up resources for upgrading equipment, adopting sustainable practices, or passing farms to the next generation.
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Who cares
Headline styles
Cut Taxes for Small Farms
Plain English, a few words. Used as the page title.
Sponsors
6 Co-sponsors
1 Multi-sponsor
History
- Print number 4477a
- Amend and recommit to ways and means
- Referred to ways and means
- Referred to ways and means
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Cut Taxes for Small Farms
In Senate Committee · Investigations And Government Operations · Sponsor Patty Ritchie
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4477--A
2017-2018 Regular Sessions
IN ASSEMBLY
February 2, 2017
Introduced by M. of A. MAGEE, BLANKENBUSH -- read once and referred to the Committee on Ways and Means -- recommitted to the Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to the tax treatment of farm income of certain farm business taxpayers
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 39 of subsection (c) of section 612 of the tax law, as added by section 1 of part Y of chapter 59 of the laws of 2013, is amended to read as follows:
(39) (A) In the case of a taxpayer who is a small business who has business income [and/or farm income] as defined in the laws of the United States, an amount equal to three percent of the net items of income, gain, loss and deduction attributable to such business [or farm] entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand thirteen, an amount equal to three and three-quarters percent of the net items of income, gain, loss and deduction attributable to such business [or farm] entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand fourteen, and an amount equal to five percent of the net items of income, gain, loss and deduction attributable to such business [or farm] entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand fifteen. For the purposes of this paragraph, the term small business shall mean a sole proprietor [or a farm business] who employs one or more persons during the taxable year and who has net business income [or net farm income] of less than two hundred fifty thousand dollars.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08239-03-8
A. 4477--A 2
(B) In the case of a taxpayer who is a farm business or a taxpayer who is a member, partner, or shareholder of a limited liability company, partnership, or New York S corporation, respectively, that is a farm business, who or which has farm income as defined by the laws of the United States, an amount equal to twenty percent of the net items of income, gain, loss and deduction attributable to such farm. For the purposes of this paragraph, the term farm business shall mean a farm business that has net farm income of less than three hundred fifty thousand dollars.
§ 2. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2019.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.