What's happening
This bill creates a refundable tax credit for farmers selling goods during transition to USDA organic or similar certification programs.
Why it matters
Bridges the financial gap for farmers in certification transition. Transitioning to organic or other certified programs often means higher costs and temporarily lower yields or incomes; this credit helps offset those losses, making it more feasible for farms to pursue sustainable practices.
Expands support to multiple certification pathways. The credit isn’t limited to USDA organic transitions; it also covers programs like Whole Foods’ “responsibly grown” and QAI/Hesco “certified transitional,” broadening who can benefit and encouraging a wider shift toward verified sustainable practices.
Refundable structure maximizes access for smaller farms. Because the credit is refundable, farmers who owe little or no tax still get a benefit—this is especially important for small or struggling farms that otherwise couldn’t utilize non-refundable credits.
Limited-time incentive may accelerate adoption. The credit is only available for tax years from 2019 to 2025, creating a window of opportunity that could prompt more farmers to start the transition process sooner rather than later, potentially accelerating the growth of certified sustainable agriculture in New York.
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Who cares
Headline styles
Tax Credit for Organic Transition
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Print number 4721a
- Amend and recommit to investigations and government operations
- Referred to investigations and government operations
- Returned to senate
- Died in assembly
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 62–0
- Ordered to third reading cal.450
- Committee discharged and committed to rules
- 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.
Support Organic Transition Farms
In Assembly Committee · Ways And Means · Sponsor William Magee
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4721--A
2017-2018 Regular Sessions
IN SENATE
February 24, 2017
Introduced by Sens. RITCHIE, MARCHIONE -- 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 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10248-02-8
S. 4721--A 2
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.
§ 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.
S. 4721--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.
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 creating a certified transitional tax credit; and providing for the repeal of such provisions upon expiration thereof
Purpose
To extend a limited tax credit to agricultural producers transitioning in to USDA Organic certification.
Summary of provisions
Section 1. Amends the tax law by adding section 44, creating a refunda- ble credit for taxpayers who sold goods under an eligible program as defined by this act.
Section 2. Amends the tax law by adding section 187-q, creating a refundable credit for taxpayers who sold goods under an eligible program as defined by this act.
Section 3. Amends section 210-B of the tax law by adding a new subdivi- sion, 53, creating a refundable credit for taxpayers who sold goods under an eligible program as defined by this act.
Section 4. Amends subparagraph B, paragraph 1, subsection i, of section 606 of the tax law by adding a new clause, xliv.
Section 5. Sets forth the effective date and expiration date for the act.
Justification
The types of agricultural products demanded by consumers is changing. For example, organic products used to be purchased by only certain consumers, but are now purchased at least occasionally by the majority of shoppers. The demand for organic products grows by double digits each year, growing over twenty-percent from just 1990 to 2002. As of 2012 organic sales were over four percent of total food sales and had exceeded $28.4 billion dollars. The majority of grocery stores nation- wide stock organic products, and both grocery stores and farmers markets have noted a lack of supply relative to growing levels of demand. Howev- er, only about one percent of farmers nationally has been able to take advantage of that growth. New York State is already a leading agricul- tural producer overall, and it will become a leader in this growing market area as well.
One major impediment to the participation of New York State farms in the organic market is the three year transition period required to achieve USDA Organic Certification. During this time period farmers must comply with organic practices, but cannot sell their products on the organic market. This change is difficult for farmers to make because they do not see an immediate return on their investment. The tax credit proposed by this bill will help to increase the profit margin for certain agricul- tural products that meet any one of several industry standards for crop quality during the transitional period to USDA Organic Certification. This will reduce the uncertainty farmers face when attempting to achieve USDA Organic Certification by providing them with an expanded market for their products and greater financial security during the transition period.
Legislative history
New bill.
Fiscal implications
To be determined
Effective date
This act shall take effect on January 1, 2019, and shall apply to taxa- ble years beginning on or after such date. This credit shall expire after the tax year beginning on January 1, 2025.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.