What's happening
This bill allows farm operators in New York to receive refunds for excess investment tax credits starting with the 2019 tax year.
Why it matters
Immediate Financial Relief for Farmers. By allowing farm operators to receive cash refunds for unused investment tax credits (rather than just carrying them forward), the bill provides immediate liquidity. This can be especially valuable for farms with tight margins, helping them reinvest or cover expenses sooner.
Retroactive Benefit. The bill applies retroactively to tax years beginning on or after January 1, 2019, meaning eligible farmers can claim refunds for past years, not just future credits. This could result in significant one-time payments for qualifying operations.
Targeted Support for the Agricultural Sector. Only taxpayers whose primary income comes from farming are eligible, focusing the financial support on the specific sector that faces unpredictable revenues and high upfront costs.
Potential to Stimulate Rural Economies. By increasing cash flow for farm operators, the bill may enable more investment in equipment, infrastructure, or labor—supporting local businesses and employment in rural communities dependent on agriculture.
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Who cares
Headline styles
Refund Extra Farm Tax Credits
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Recommit, enacting clause stricken
- Referred to investigations and government operations
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
922
2019-2020 Regular Sessions
IN SENATE
January 9, 2019
Introduced by Sens. YOUNG, O'MARA -- 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 providing that excess investment tax credit amounts may be refundable to operators of a farm operation
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 210-B of the tax law is amended by adding a new paragraph (d-1) to read as follows:
(d-1) Notwithstanding any other provision of this subdivision, for taxable years beginning on or after January first, two thousand nineteen, if the credit allowed under this subdivision is greater than the tax due in any taxable year for a taxpayer whose primary source of income is derived from operating a farm operation, such taxpayer may elect to treat the amount by which such credit exceeds such tax due as an overpayment of tax to be refunded in accordance with the provisions of section one thousand eighty-six of this chapter. For purposes of this paragraph, the term "farm operation" shall have the same meaning as such term is defined in subdivision eleven of section three hundred one of the agriculture and markets law.
§ 2. Subsection (a) of section 606 of the tax law is amended by adding a new paragraph 5-a to read as follows:
(5-a) Notwithstanding any other provision of this subsection, for taxable years beginning on or after January first, two thousand nineteen, if the credit allowed under this subsection is greater than the tax due in any taxable year for a taxpayer whose primary source of income is derived from operating a farm operation, such taxpayer may elect to treat the amount by which such credit exceeds such tax due as an overpayment of tax to be refunded in accordance with the provisions of section six hundred eighty-six of this article. For purposes of this
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01448-02-9
S. 922 2
paragraph, the term "farm operation" shall have the same meaning as such term is defined in subdivision eleven of section three hundred one of the agriculture and markets law.
§ 3. This act shall take effect immediately, and shall be deemed to have been in full force and effect on and after January 1, 2019.
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 providing that excess investment tax credit amounts may be refundable to operators of a farm operation
Purpose
To allow farmers to receive the investment tax credit as a fully refund- able credit.
Summary of provisions
Section 1: Amends subdivision 1 of section 210-B of the tax law to provide that excess investment tax credit amounts may be refundable to operators of a farm operation. Section 2: Amends subsection (a) of section 606 of the tax law to provide that excess investment tax credit amounts may be refundable to operators of a farm operation. Section 3: Provides an immediate effective date and deems that it shall be deemed to have been in full force and effect on and after January 1, 2019.
Justification
New York is home to some 38,000 farms encompassing roughly 7.8 million acres of cropland, pasture and woodlands. These farms produce nearly $3.1 billion annually in direct economic output and probably double or triple that in indirect economic benefits with the farming and food industry employing over 425,000 people. Given the enormous economic impact that agriculture has on the economy of this State, we must do everything we can to ensure that our farm operations survive.
When farmers make long-term investments in their operations they are eligible for the investment tax credit (ITC). However, unlike the agri- cultural school tax credit, the investment tax credit is not refundable and, thereby, is of no benefit to farmers who have no taxable income. To remedy this and to assist our farmers with continuing to make investment in their agri-enterprises, this bill would allow farmers to receive the ITC as a fully refundable credit, similar to the school tax credit. By making this small change, our farmers would receive a valuable benefit that would enable them to continue to update, modernize and invest in their farms.
Legislative history
2018: S.1738-A Referred to Investigations & Government Operations 2017: S.1738 Referred to Investigations & Government Operations 2016: S.3065-A Referred to Investigations & Government Operations 2015: S.3065 Referred to Investigations & Government Operations 2013,2014: S.2083A Referred to Investigations & Government Operations 2011,2012: S.784/A.386 Reported to Investigations & Operations Committee 2009,2010: S.2431A/A.1088A Reported to Investigations & Operations Committee 2007,2008: S.2036A/A.1233B Passed Senate 2006: S.7164/A.9279 Referred to Investigations & Operations Committee
Fiscal implications
To be determined.
Effective date
Effective immediately, and shall be deemed to have been in full force and effect on and after January 1, 2019.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.