What's happening
This bill increases the farm workforce retention tax credit and removes its expiration date, making it permanent.
Why it matters
Significantly increases the financial incentive for farms to retain employees. by raising the per-employee tax credit from $600 to $1,200 for every eligible farm worker, effectively doubling the support for employers in the agricultural sector.
Makes the farm workforce retention credit a permanent part of New York tax law. , removing the previous sunset date and providing long-term stability and predictability for farm businesses planning their labor costs.
May help address ongoing labor shortages in agriculture. by making farm jobs more attractive and supporting farm owners in maintaining a stable, experienced workforce, which could improve farm productivity and rural economic health.
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Who cares
Headline styles
Increase Farm Worker Tax Credit
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 61–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.480
- Reported and committed to finance
- Referred to investigations and government operations
- Referred to rules
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.
Increase Farm Worker Tax Credit
In Assembly Committee · Ways And Means · Sponsor Donna Lupardo
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6773
2019-2020 Regular Sessions
IN SENATE
October 11, 2019
Introduced by Sen. METZGER -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the tax law, in relation to the farm workforce retention credit; and to amend chapter 60 of the laws of 2016 amending the tax law relating to creating a farm workforce retention credit, in relation to the effectiveness of such provisions
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision (e) of section 42 of the tax law, as added by section 1 of part RR of chapter 60 of the laws of 2016, is amended to read as follows:
(e) For taxable years beginning on or after January first, two thousand seventeen and before January first, two thousand eighteen, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and two hundred fifty dollars. For taxable years beginning on or after January first, two thousand eighteen and before January first, two thousand nineteen, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and three hundred dollars. For taxable years beginning on or after January first, two thousand nineteen and before January first, two thousand twenty, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and five hundred dollars. For taxable years beginning on or after January first, two thousand twenty and before January first, two thousand twenty-one, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and four hundred dollars. For taxable years beginning on or after January first, two thousand twenty-one and before January first, two thousand twenty-two, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and [six]
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13905-02-9
S. 6773 2
eight hundred dollars. For taxable years beginning on or after January first, two thousand twenty-two, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and twelve hundred dollars.
§ 2. Section 5 of part RR of chapter 60 of the laws of 2016 amending the tax law relating to creating a farm workforce retention credit is amended to read as follows:
§ 5. This act shall take effect immediately and shall apply only to taxable years beginning on or after January 1, 2017 [and before January 1, 2022].
§ 3. This act shall take effect immediately.
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 the farm workforce retention credit; and to amend chapter 60 of the laws of 2016 amending the tax law relating to creating a farm workforce retention credit, in relation to the effectiveness of such provisions
Purpose
The purpose of this legislation is to increase the amount of the farm workforce retention credit and extend the effectiveness of the credit.
Summary of provisions
Section 1 - Amends section 42 subdivision (e) of the tax law to increase credit from six hundred to eight hundred per eligible employee in the taxable year beginning January 1, 2021. The legislation also increases the tax credit beginning January 2022 to one thousand two hundred dollars per eligible employee.
Section 2 - Amends section 5 of part RR of chapter 60 of the laws of 2016 to remove the January 2022 sunset on the credit.
Section 3 -Effective Date -Immediately.
Existing law
Under the existing law, farm owners are eligible to claim the credit as follows per eligible farm employee.
January 1,2017, and before January 1, 2018-$250
January 1,2018, and before January 1, 2019-$300
January 1, 2019, and before January 1, 2020-$500
January 1, 2020, and before January 1, 2021-$400
January 1, 2021, and before January 1,2022-$600
Lastly this credit is set to expire on January 1, 2022.
Justification
Farms across New York are contending with a 23.5 percent in total production costs since 2007. These costs are largely the result of increased labor costs. According to 2017 USDA ERS data, farm labor expense in New York was about 13.2 percent of the value of agricultural receipts, compared to the national average of 9.5 percent. A recent Farm Credit East report estimates that labor costs will increase by $299 million. New York farmers faced a number of challenges in recent years including a rising minimum wage, a tightening labor market, and upcoming changes to overtime pay. These costs place New York farmers at a compet- itive disadvantage. As producers of commodities farms have a limited ability to increases prices in national and international market. In an effort to provide relief for farm employers, this legislation seeks to increase a valuable tax credit for farmers. As markets continue to fluc- tuate and labor costs continue to rise it is important to provide farm employers with certainty. This legislation provides an added measure of certainty by extending the farm workforce retention credit permanently and increasing its value.
Legislative history
This is a new bill.
Fiscal implications
$50 million a year.
Effective date
Immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.