What's happening
This bill creates a tax credit for farmers who sell or rent agricultural land to young farmers, with specific eligibility and easement requirements.
Why it matters
Targets aging farm ownership and land transfer challenges. by incentivizing current farmers to sell or rent land to a new generation, addressing the problem of farm succession and the declining number of young farmers in New York.
Encourages genuine agricultural use. through a required easement limiting development to farming for at least 10 years, helping to prevent farmland from being lost to non-agricultural development and supporting long-term land stewardship.
Includes family transitions. by making the tax credit available even when the sale or rental is to a relative, acknowledging that many farm transitions occur within families while still requiring the same eligibility standards.
Provides financial support at a critical time for young farmers. (those with less than 10 years' experience), who often face high barriers to entry, making it more feasible for them to access land and start or expand operations.
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Tax Credit for Young Farmers
Plain English, a few words. Used as the page title.
Sponsors
History
- Print number 1438b
- Amend and recommit to investigations and government operations
- Referred to investigations and government operations
- Print number 1438a
- Amend and recommit to finance
- Reported and committed to finance
- Referred to investigations and government operations
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 Young Farmers
In Assembly Committee · Ways And Means · Sponsor William Magee
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1438--B
2017-2018 Regular Sessions
IN SENATE
January 9, 2017
Introduced by Sens. RITCHIE, AKSHAR, BONACIC, DeFRANCISCO, GALLIVAN, GRIFFO, LARKIN, MARCHIONE, O'MARA, ORTT, RANZENHOFER, SEWARD, YOUNG -read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government… Show allHide
Introduced by Sens. RITCHIE, AKSHAR, BONACIC, DeFRANCISCO, GALLIVAN, GRIFFO, LARKIN, MARCHIONE, O'MARA, ORTT, RANZENHOFER, SEWARD, YOUNG -read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- reported favorably from said committee and committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- recommitted to the Committee on Investigations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to providing a tax credit to farmers who sell or rent their agricultural land to a young farmer
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 210-B of the tax law is amended by adding a new subdivision 53 to read as follows:
53. Credit for farmers who sell or rent their agricultural land to a young farmer. (a) Allowance of credit. A taxpayer that is an agricultural business principally engaged in farming, as such term is defined in paragraph nineteen of subdivision (b) of section eleven hundred one of this chapter shall be allowed a credit against the tax imposed by this article for the sale or rent of their agricultural lands to a young farmer, as defined in this section. Such credit shall be ten percent of the purchase price or rental amount of the agricultural lands; provided, however, that such price shall not exceed the fair market value of the real property. A taxpayer who sells or rents their agricultural land to a relative shall be eligible for the credit established in this section.
(b) For purposes of this subdivision, "young farmer" shall mean a farmer who is at least eighteen years old and who has not produced an agricultural product for more than ten consecutive years, where agricultural product means any agricultural or aquacultural product of the soil
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07443-04-8
S. 1438--B 2
or water, including but not limited to fruits, vegetables, eggs, dairy products, meat and meat products, poultry and poultry products, fish and fish products, grain and grain products, honey, nuts, preserves, maple sap products, apple cider, fruit juice, horticultural specialties, and Christmas trees and who will materially and substantially participate in the production of an agricultural project.
(c) Prior to sale, the seller shall convey to the department of agriculture and markets, an easement, the terms of which limit development of the land to agricultural business, principally farming, as such term is defined in paragraph nineteen of subdivision (b) of section eleven hundred one of this chapter. The easement shall expire not less than ten years from the date of sale.
§ 2. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows:
(ccc) Credit for the sale or rent of agricultural land to a young farmer. (1) Allowance of credit. A taxpayer whose federal gross income from farming for the taxable year is at least two-thirds of excess federal gross income shall be allowed a credit against the tax imposed by this article for the sale or rent of agricultural land or equipment to a young farmer, as defined by section two hundred ten-B of this chapter. Such credit shall be ten percent of the purchase price of rental amount of the agricultural land, and shall be allowed notwithstanding subsection (kk) of this section.
(2) Definitions. For purposes of this subsection, the following definitions shall apply:
(A) "Excess federal gross income" means the amount of federal gross income from all sources for the taxable year reduced by the sum, not to exceed thirty thousand dollars, of those items included in federal gross income which consist of:
(i) earned income,
(ii) pension payments, including social security payments,
(iii) interest, and
(iv) dividends.
(B) For purposes of this paragraph, the term "earned income" shall mean wages, salaries, tips and other employee compensation, and those items of gross income which are includible in the computation of net earnings from self-employment. For the purposes of this paragraph, payments from the state's farmland protection program, administered by the department of agriculture and markets, shall be included as federal gross income from farming.
(3) Application of credit. If the amount of the credit allowed under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section six hundred eighty-six of this article, provided, however, that no interest shall be paid thereon.
§ 3. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2019.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to providing a tax credit to farmers who sell or rent their agricultural land to a young farmer
Purpose
To establish a tax credit for farmers who sell or rent their agricul- tural land to young farmers.
Summary of provisions
Sections 1 and 2 amend section 210 and section 606 of the tax law to create and allow for a credit for current farmers who sell or rent their agricultural lands to young farmers.
Section 3 provides the effective date.
Justification
Current tax law allows for various tax credits. It does not currently allow a credit for farmers who are considering selling or renting their agricultural lands to a young farmer. Such programs however, do exist in other states. New York state tax law provides for various tax credits already. Allowing a tax credit for current farmers who agree to sell or rent their agricultural lands to a young farmer is good public policy. Taking steps to recruit young, new farmers to the agricultural profes- sion is certainly one area in need of incentives, and helping to ensure agricultural lands are available for sale or rent to young or beginning farmers to get them started in the agricultural profession, is one way to provide that incentive.
Agriculture is the leading industry in New York, yet New York's farm community is aging and it has become increasingly difficult to attract young people to farming and to encourage younger generations to consider farming as a career. The average age of farm operators in New York is 59, and is expected to continue to increase unless steps are taken to reverse this trend. The U.S. Secretary of Agriculture has set a goal of recruiting 100,000 new farmers across the country to replace those who are retiring. By enacting a tax credit to encourage current farmers to sell or rent their land to young farmers, we will be taking one small step at helping that recruitment effort, and helping to keep agricul- tural lands in production, rather than losing them permanently.
Farming is a difficult business and there are many barriers to keeping current farm land in the hands of agricultural producers. As the current crop of farmers continues to age out of the business, we need to encour- age these farmers to sell their land to those considering entering the profession. It is in the best interest of the state to ensure that enough producers are recruited and retained in agricultural production. Additionally, the recent increase in demand for quality fresh locally grown foods and beverages highlight the importance of assisting new farmers to enter the profession.
Legislative history
2015-2016: S1798-A 2013-2014: S.6882
Fiscal implications
Undetermined. The bill allows a ten percent tax credit for the sale or use of agricultural land to a young farmer.
Effective date
Immediately and shall apply to taxable years beginning on and after January 1, 2019.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.