What's happening
This bill creates a tax credit for New York businesses that source a percentage of their products locally from in-state producers.
Why it matters
Creates tiered incentives for businesses to increase local purchasing. The bill establishes escalating tax credits based on what percentage of a business’s net sales come from New York-produced goods, with the highest credits going to businesses sourcing entirely in-state. This structure could drive significant shifts in business supply chains and procurement strategies.
Explicitly supports New York farmers and manufacturers. By defining “local products” and “producers” to exclude wholesalers and distributors, the law ensures that tax benefits directly support primary producers—such as farmers, student farmers, and manufacturers—helping strengthen the state’s agricultural and manufacturing base.
Requires detailed reporting and traceability. To claim the credit, businesses must submit a computer-generated report listing each producer, the physical location of production, amounts paid, and units purchased. This transparency could improve accountability, make it easier to track economic impacts, and prevent abuse or misreporting.
Limits on credit carryover and immediate implementation. The tax credit cannot be carried forward to future years, incentivizing businesses to maximize local sourcing annually. The bill’s immediate effect and provision for rapid regulatory updates mean that potential benefits (or compliance challenges) could be felt by businesses and producers without delay.
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Who cares
Headline styles
Tax Credit for Local Products
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to budget and revenue
- Referred to budget and revenue
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 Local Goods
In Assembly Committee · Ways And Means · Sponsor Stephen Hawley
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5275
2019-2020 Regular Sessions
IN SENATE
April 23, 2019
Introduced by Sen. GALLIVAN -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law, in relation to creating a local food and products sourcing tax credit
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. Local food and products sourcing tax credit. 1. Businesses subject to tax liability under article nine or nine-A of this chapter may claim the local foods and products sourcing tax credit against any such liability at the close of the tax year provided, however, that the unused portion of any tax credit claimed shall not be carried forward and applied in another tax year.
2. For the purposes of this section the following terms shall have the following meanings:
(a) "local products", are any products grown, raised, produced, or manufactured by a producer within the state of New York, from seed or conception through final product;
(b) "producer", is an individual (whether acting individually or through a cooperative, corporation, partnership, business association, or educational institution) who is a farmer, student farmer, or manufacturer of foods or goods in New York state, it shall not however include a wholesaler or distributor;
(c) "net sales", are the total sales of the business subject to tax.
3. The amount of the credit shall be proscribed according to the following schedule:
(a) twenty percent of net sales are attributed to local products the credit shall be one thousand five hundred dollars.
(b) forty percent of net sales are attributed to local products the credit shall be three thousand dollars.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02111-01-9
S. 5275 2
(c) sixty percent of net sales are attributed to local products the credit shall be six thousand dollars.
(d) eighty percent of net sales are attributed to local products the credit shall be twelve thousand dollars.
(e) one hundred percent of net sales are attributed to local products the credit shall be twenty-five thousand dollars.
4.(a) Businesses claiming the local food and products sourcing tax credit shall submit a computer-generated report with tax returns that claim a tax credit.
(b) Such report shall include the name of the producer and the physical place of the business where the products are produced.
(c) The amount paid by grocer or business to the producer and the amount of units purchased.
§ 2. This act shall take effect immediately. Effective immediately the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made on or before such 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 local food and products sourcing tax credit
Purpose
This bill establishes the local foods and products sourcing tax credit to encourage businesses to procure and sell local products made in New York.
Summary of specific provisions
Section 1 amends Section 210-B of the tax law by adding a new subdi- vision 49 that authorizes a credit against the corporation or franchise tax for the sale of local products, which are defined as products grown, raised, produced, or manufactured by a producer within New York State, from seed or conception through final product.
Section 2 establishes the effective date.
Justification
New York State produces a plethora of products grown, raised, produced or manufactured, from seed or conception through final product. The availability of this tax credit will incentivize businesses to purchase New York State made products from local businesses for re-sale, thereby increasing the output of such local businesses, which in turn will enhance the local multiplier effect that ultimately benefits people in the communities where such local businesses are situated.
Prior legislative history
07/01/10 A11270 - held for consideration in ways and means 06/19/12 A1301 - held for consideration in ways and means 06/17/14 held for consideration in ways and means A3243 - 06/14/16 held for consideration in ways and means A1682 - 06/14/18 held for consideration in ways and means
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.