What's happening
This bill creates a personal income tax credit for New York farmers who lose eligible crops to frost damage.
Why it matters
Targets farmers who derive at least two-thirds of their income from farming. , ensuring the tax credit is focused on those most reliant on agriculture for their livelihood.
Covers a broad range of crops. , including fruits (like apples, peaches, grapes), vegetables (such as tomatoes, beans, cabbage), potatoes, and dry beans—meaning diverse types of producers could benefit from this support after a frost event.
Calculates the credit based on actual acreage and statewide average crop value. , tying relief to the real scale of loss and using USDA data for fairness and consistency.
Allows the credit to be refundable if it exceeds a farmer’s tax liability. , making it accessible even to those with low or no taxable income, which can be especially important in years of heavy crop loss.
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Who cares
Headline styles
Tax Credit for Crop Loss
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Print number 1921a
- Amend and recommit to investigations and government operations
- 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.
Tax Credit for Crop Losses
In Assembly Committee · Ways And Means · Sponsor William Magee
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1921--A
2017-2018 Regular Sessions
IN SENATE
January 11, 2017
Introduced by Sens. RITCHIE, YOUNG -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- 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 establishing an agricultural crop loss personal income tax credit
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows:
(ccc) Agricultural crop loss tax credit. (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 loss or damage of eligible crops as a result of frost injury for taxable years beginning on or after January first, two thousand nineteen. The amount of the credit shall be equal to thirty-five percent of the average value of the unit of production for New York state as reported by the USDA National Agricultural Statistics Service in a given year, multiplied by acreage in production, including newly planted acreage, for the growing season of such year.
(2) Application of credit. If the amount of the credit allowed under this subsection for such 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) For the purposes of this subsection, the term "eligible crop" shall mean: (a) fruits, including apples, peaches, grapes, cherries and berries, (b) vegetables, including tomatoes, snap beans, cabbage, carrots, beets and onions, and (c) potatoes and dry beans.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07620-02-8
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 establish- ing an agricultural crop loss personal income tax credit
Purpose
To provide a personal income tax credit for agricultural crop losses
Summary of specific provisions
Section 1 amends the tax law by adding a new subsection establishing the Agricultural crop loss tax credit. The amount of the credit shall be equal to 35% of the average value of the unit production for New York State and reported by the USDA National Agricultural Statistics Service in a given year, multiplied by acreage in production.
Section 2 is the effective date.
Justification
Agriculture, by the nature of its business, is extremely dependent upon weather and pricing. We have seen the impacts of weather on farm busi- ness during Hurricane Irene, Tropical Storm Lee, and Super storm Sandy, where farms lost a year's worth of forage, fruit and produce. Weather events combined with the strong cyclical nature of commodity pricing, makes pecuniary gains extremely difficult for agricultural businesses.
At the beginning of the 2012 growing season, New York State's farmers experienced widespread damage and loss to their crops as a result of an extremely rare severe frost event. Upon initial notification, elected officials and farm organizations immediately requested that the Governor contact the USDA Secretary of Agriculture and ask that a disaster decla- ration be issued for counties where farmers experienced damage to their crops. In doing so, farmers in counties that receive such a designation would be eligible for low-cost loans if their losses exceed the estab- lished threshold, as evaluated by the USDA's Farm Service Agency.
The preliminary damage assessment estimate indicated that New York expe- rienced one of the worst statewide, multi-crop losses ever witnessed in the State. Cornell's Lake Erie Regional Research Laboratory estimated crop loss for grapes was between 40%-50%; cherries at 100%, peaches at 90%, and apples at 50%. While the level of crop loss varies based on the region of the State, elevations and the crop's stage of growth, there is no doubt that there is a high probability that many farmers will face severe economic losses.
Catastrophic losses like this are becoming more prevalent as traumatic weather events become more frequent and extreme. This legislation is vitally important as it allows the state's farm operations and their families an opportunity to be economically viable, despite these weather events. Furthermore, this bill will allow farmers to offset the losses they sustain. For all of these reasons it is imperative that this bill is enacted.
Legislative history
2015: S.4960-A/ A.7277-A
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.