What's happening
This bill creates a refundable tax credit for farmers selling products during transition to organic or certain certified labeling programs.
Why it matters
Supports farmers during costly and risky transition periods. by providing financial relief as they shift from conventional to organic or other certified sustainable practices, a time when yields and revenues can drop before higher-value certifications are achieved.
Encourages adoption of certified sustainable practices. not just USDA organic, but also “responsibly grown” and “certified transitional” labels—broadening support to a wider range of environmentally friendly farming methods.
Refundable tax credit structure means farmers can benefit even with low or negative tax liability. , making the support more accessible to small and mid-sized operations who may not owe significant taxes during the transition period.
Time-limited incentive (2019–2025) creates urgency and a window for action. , potentially accelerating the growth of organic and sustainable agriculture in New York while allowing the state to evaluate the program’s effectiveness before extending or modifying it.
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Who cares
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Support Organic Transition Farms
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History
- Print number 7368a
- 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.
Tax Credit for Organic Transition
In Senate Committee · Investigations And Government Operations · Sponsor Patty Ritchie
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7368--A
2017-2018 Regular Sessions
IN ASSEMBLY
April 25, 2017
Introduced by M. of A. MAGEE -- 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 creating a certified transitional tax credit; and providing for the repeal of such provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The tax law is amended by adding a new section 44 to read as follows:
§ 44. Certified transitional tax credit. (a) Allowance of credit. A taxpayer, who is subject to tax under article nine, nine-A, or twentytwo of this chapter shall be allowed a refundable credit against such tax to be computed as provided in this section, for the tax imposed by this article for taxable years after January first, two thousand nineteen.
(b) Value of credit. The amount of such credit shall be equal to twenty-five percent of the total pounds of goods sold under an eligible program under subdivision (c) of this section, multiplied by one-half.
(c) Eligible programs. Taxpayers that wish to claim this credit must demonstrate their agricultural products were sold during a period of transition in to USDA organic certification, under the Whole Foods Market IP. L.P. "responsibly grown" labelling program, or under the QAI and Hesco, Inc. "certified transitional" label.
(d) Application of credit. The credit allowed under this section for any taxable year shall not reduce the tax due for such year to less than the minimum tax fixed by this article. However, if the amount of credit allowed under this section for any taxable year reduces the tax to such amount, any amount of credit thus not deductible in such taxable year
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10248-03-8
A. 7368--A 2
shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section one thousand eighty-six of this chapter. Except as provided in subsection (c) of section one thousand eighty-eight of this chapter, no interest shall be paid thereon.
§ 2. The tax law is amended by adding a new section 187-q to read as follows:
§ 187-q. Certified transitional tax credit. (a) Allowance of credit. A taxpayer, who is subject to tax under article nine, nine-A, or twentytwo of this chapter shall be allowed a refundable credit against such tax to be computed as provided in this section, for the tax imposed by this article for taxable years after January first, two thousand nineteen.
(b) Value of credit. The amount of such credit shall be equal to twenty-five percent of the total pounds of goods sold under an eligible program under subdivision (c) of this section, multiplied by one-half.
(c) Eligible programs. Taxpayers that wish to claim this credit must demonstrate their agricultural products were sold during a period of transition in to USDA organic certification, under the Whole Foods Market IP. L.P. "responsibly grown" labelling program, or under the QAI and Hesco, Inc. "certified transitional" label.
(d) Application of credit. The credit allowed under this section for any taxable year shall not reduce the tax due for such year to less than the minimum tax fixed by this article. However, if the amount of credit allowed under this section for any taxable year reduces the tax to such amount, any amount of credit thus not deductible in such taxable year shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section one thousand eighty-six of this chapter. Except as provided in subsection (c) of section one thousand eighty-eight of this chapter, no interest shall be paid thereon.
§ 3. Section 210-B of the tax law is amended by adding a new subdivision 53 to read as follows:
53. Certified transitional tax credit. (a) Allowance of credit. A taxpayer, who is subject to tax under article nine, nine-A, or twentytwo of this chapter shall be allowed a refundable credit against such tax to be computed as provided in this subdivision, for the tax imposed by this article for taxable years after January first, two thousand nineteen.
(b) Value of credit. The amount of such credit shall be equal to twenty-five percent of the total pounds of goods sold under an eligible program under subdivision (c) of this section, multiplied by one-half.
(c) Eligible programs. Taxpayers that wish to claim this credit must demonstrate their agricultural products were sold during a period of transition in to USDA organic certification, under the Whole Foods Market IP. L.P. "responsibly grown" labelling program, or under the QAI and Hesco, Inc. "certified transitional" label.
(d) Application of credit. The credit allowed under this subdivision for any taxable year shall not reduce the tax due for such year to less than the minimum tax fixed by this article. However, if the amount of credit allowed under this subdivision for any taxable year reduces the tax to such amount, any amount of credit thus not deductible in such taxable year shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section one thousand eighty-six of this chapter. Except as provided in subsection (c) of section one thousand eighty-eight of this chapter, no interest shall be paid thereon.
A. 7368--A 3
§ 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xliv) to read as follows: (xliv) Certified transitional Amount of credit under tax credit under section subdivision fifty-three of forty-four of this chapter section two hundred ten-B
§ 5. This act shall take effect January 1, 2019, and shall apply to taxable years beginning on or after such date, and shall expire January 1, 2025 when upon such date the provisions of this act shall be deemed repealed; provided, however, that effective immediately the addition, amendment and/or repeal of any rule or regulation by the department of agriculture and markets, in conjunction with the department of taxation and finance that is necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date.
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