What's happening
This bill creates a tax credit for food service establishments that purchase New York produced farm products, capped at $1,000 per year per taxpayer and $5 million statewide.
Why it matters
Encourages local purchasing. By providing a tax credit for buying New York-produced farm products, the bill incentivizes food service establishments to support local farmers and producers, potentially strengthening the state’s agricultural economy.
Targets specific businesses. The credit is only available to food service establishments (like restaurants, cafeterias, and catering businesses), not to retail food stores or food processors, which narrows the impact to businesses that serve prepared food directly to consumers.
Supports a diverse range of agriculture. The eligible products include not just fruits and vegetables, but also eggs, livestock, fish, dairy products (except milk), juice, and grains, promoting a broad spectrum of New York’s farm sector.
Limits and equity considerations. The $1,000 annual cap per taxpayer and $5 million statewide ceiling means not all eligible businesses may receive the credit if demand is high, raising questions about allocation if the statewide cap is reached and potentially favoring early applicants.
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Who cares
Headline styles
Tax Credit for NY Produce
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
751
2019-2020 Regular Sessions
IN SENATE (Prefiled)
January 9, 2019
Introduced by Sen. MONTGOMERY -- 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 establishing the buy New York produce 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. Buy New York produce tax credit. (a) Amount of credit. A taxpayer shall be allowed a credit against the tax imposed by this article for purchasing New York produced farm products. The amount of the credit shall be equal to ten percent of the total receipts of New York produced farm products that are purchased by the taxpayer in a taxable year not to exceed one thousand dollars in a taxable year.
(b) Credit limitation. The total amount of credit to be provided statewide shall not exceed five million dollars in a taxable year.
(c) Eligibility. A taxpayer shall be eligible for the credit allowed pursuant to this subdivision if such taxpayer is a food service establishment as such term is defined in paragraph (d) of this subdivision.
(d) Definitions. (i) The term "food service establishment" shall mean a place where food is prepared and intended for individual portion service and includes the site at which the individual portions are provided, whether consumption occurs on or off the premises. Such term shall not include food processing establishments, retail food stores, private homes where food is prepared or served for family consumption, and food service operations where a distinct group mutually provides, prepares, serves, and consumes the food limited to a congregation, club, or fraternal organization.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03555-01-9
S. 751 2
(ii) The term "New York produced farm products" shall mean farm products grown, produced, or harvested in New York state by an association of producers or growers that produce or grow eggs, livestock, fish, dairy products (excluding milk), juice, grains, and species of fresh fruits and vegetables.
(e) Carryover. If the amount of credit allowable under this subdivision for any taxable year shall exceed the taxpayer's tax for such year, the excess may be carried over to the following year or years, and may be deducted from the taxpayer's tax for such year or years.
§ 2. 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 establishing the buy New York produce tax credit
Purpose
To create a buy New York produce tax credit for New York food service establishments
Summary of provisions
Section 1. Section 210-B of the tax law is amended by adding a new subdivision 53 to read as follows: 53. Buy New York tax credit. A taxpayer shall be allowed a credit against the tax imposed by this arti- cle for purchasing New York produced farm products. The amount of the credit shall be equal to ten percent of the total receipts of New York produced farm products that are purchased by the taxpayer in a taxable year not to exceed one thousand dollars in a taxable year.
Section 2 provides the effective date
Justification
New York has a surplus of products grown, raised and produced within the state of New York. This tax credit is designed to reward New York taxpayers of food service establishments to purchase farm products to use in their businesses. Eased on the percentage of net purchase, the taxpayer would receive a percentage in the form of a tax credit.
Legislative history
New Bill
Fiscal implications
None
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.