S784-2011 Actions

• Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jan 5, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S784-2011 Memo

BILL NUMBER:S784

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
refundable credit.

SUMMARY OF PROVISIONS:
Section 210 of the Tax Law is amended to provide that excess
investment tax credit amounts may be refundable to operators of a
farm operation.

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
agricultural school tax credit, the investment tax credit is not
refundable and, thereby, 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:
S.7164  (2006)- Referred to Senate Investigations & Operations Committee
Referred to Assembly Ways & Means Committee
S.2036A (2007-2008) - Passed Senate
S.2431A (2009-2010) - Referred to Senate Investigations & Operations
Committee

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
Effective immediately.

S784-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                          784
 2011-2012 Regular Sessions
 I N  SENATE
 (PREFILED)
 January 5, 2011
 
 Introduced  by  Sens.  YOUNG, BONACIC -- 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  ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section  1. Subdivision 12 of section 210 of the tax law is amended by
 adding a new paragraph (e-1) to read as follows:

 (E-1) NOTWITHSTANDING ANY OTHER PROVISION  OF  THIS  SUBDIVISION,  FOR
 TAXABLE  YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND ELEVEN,
 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  OVER
 PAYMENT  OF  TAX  TO  BE  REFUNDED  IN ACCORDANCE WITH THE PROVISIONS OF
 SECTION TEN HUNDRED 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.
 

S 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 ELEVEN,
 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 OVER
 PAYMENT OF TAX TO BE REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD02079-01-1
 
       S. 784                              2
 SECTION  SIX  HUNDRED  EIGHTY-SIX  OF THIS ARTICLE. 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.
 

S  3.  This  act shall take effect immediately, and shall be deemed to
 have been in full force and effect on and after January 1, 2011.

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