What's happening
This bill allows farm operators in New York to receive refundable tax credits if their investment tax credit exceeds their tax due.
Why it matters
Provides immediate, tangible financial relief to farm operators. by allowing them to receive cash refunds if their investment tax credit is greater than their tax liability, rather than just carrying forward unused credits.
Encourages greater investment in agricultural equipment and infrastructure. because farmers can be assured they’ll benefit from the tax credit even if their farm income is low or inconsistent, reducing financial risk.
Levels the playing field for smaller or less profitable farms. by ensuring they receive the same practical benefit from the investment tax credit as larger farms that typically have higher tax liabilities.
Applies retroactively to tax years beginning January 1, 2017. , potentially allowing eligible farm operators to claim refunds for prior years, which could provide an immediate cash infusion for struggling farms.
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Who cares
Headline styles
Refund Farm Tax Credits
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 55
3 Co-sponsors
History
- Referred to investigations and government operations
- 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.
Refund Farm Tax Credits
In Assembly Committee · Ways And Means · Sponsor Aileen Gunther
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1446
2017-2018 Regular Sessions
IN SENATE
January 9, 2017
Introduced by Sen. FUNKE -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
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
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 210-B of the tax law is amended by adding a new paragraph (e-1) to read as follows:
(e-1) Notwithstanding any other provision of this subdivision, for taxable years beginning on or after January first, two thousand seventeen, if the credit allowed under this subdivision is greater than the tax due in any taxable year for a taxpayer whose primary source of income is derived from operating a farm operation, such taxpayer may elect to treat the amount by which such credit exceeds such tax due as an overpayment of tax to be refunded in accordance with the provisions of section ten hundred eighty-six of this chapter. For purposes of this paragraph, the term "farm operation" shall have the same meaning as such term is defined in subdivision eleven of section three hundred one of the agriculture and markets law.
§ 2. Subsection (a) of section 606 of the tax law is amended by adding a new paragraph 5-a to read as follows:
(5-a) Notwithstanding any other provision of this subsection, for taxable years beginning on or after January first, two thousand seventeen, if the credit allowed under this subsection is greater than the tax due in any taxable year for a taxpayer whose primary source of income is derived from operating a farm operation, such taxpayer may elect to treat the amount by which such credit exceeds such tax due as an overpayment of tax to be refunded in accordance with the provisions of section six hundred eighty-six of this article. For purposes of this
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03653-01-7
S. 1446 2
paragraph, the term "farm operation" shall have the same meaning as such term is defined in subdivision eleven of section three hundred one of the agriculture and markets law.
§ 3. This act shall take effect immediately, and shall be deemed to have been in full force and effect on and after January 1, 2017.
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 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
Amends the tax law to provide that, as it applies to farm operations, the investment tax credit shall become a refundable credit.
Justification
This state is home to some 38,000 farms encompassing roughly 7.8 million acres of cropland, pasture and woodlands from Erie County to Suffolk County. 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 farmers survive.
As part of that, when farmers make long term investments in their operations they are, often times, eligible for the investment tax credit (ITC). As it currently stands, however, unlike the agricultural school tax credit, the investment tax credit is not refundable - so if a farmer as no taxable income, he or she cannot receive the benefit of the ITC. To remedy this and to assist our farmers with continuing to make investment in their agri-enterprises, this bill would simply provide that farmers could receive the ITC as a fully refundable credit just as they do the school tax credit. By making this small change our farmers, overall, could receive a large and needed benefit that would enable them to continue to update, modernize and invest in their farms.
Legislative history
S.4740A of 2015-2016; Referred to Investigations and Government Operations S.2803A of 2013-2014; Referred to Investigations and Government Operations S.784/A.386 of 2011-2012; Referred to Investigations and Government Operations S.2431A/A.1088A of 2009-2010; Referred to Investigations and Government Operations S.2036A/A.1233B of 2007-2008; Passed Senate S.7164/A.9297 of 2006; Referred to Investigations and Government Operations
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately, and shall be deemed to have been in full force and effect on and after January 1, 2017.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.