Relates to creating a local food and products sourcing tax credit.
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 will provide a tax credit to those businesses in New York state which sell New York state products
SUMMARY OF SPECIFIC PROVISIONS: Section 1 Section 210 of the tax law is amended by adding a new subdivision 43 to read as follows: 41. 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.
JUSTIFICATION: New York state has a plethora of products grown, raised and produced within the state of New York, from seed or conception through final product. Businesses in New York which sell these products make our state stronger by supporting other local businesses which produce these products. This tax credit would encourage more local businesses to buy and sell local goods. Based on the percentage of net sales, the business would receive a percentage of their sales in the form of a tax credit.
PRIOR LEGISLATIVE HISTORY: 07/01/10 A.11270 - Held for consideration in Ways and Means
FISCAL IMPLICATIONS: Unknown.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 4332 2011-2012 Regular Sessions IN SENATE March 29, 2011 ___________Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations 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 ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 210 of the tax law is amended by adding a new subdivision 43 to read as follows: 43. 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 MANUFAC- TURER 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.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03379-01-1 S. 4332 2
(B) FORTY PERCENT OF NET SALES ARE ATTRIBUTED TO LOCAL PRODUCTS THE CREDIT SHALL BE THREE THOUSAND DOLLARS. (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) BUSINESS CLAIMING THE LOCAL FOOD AND PRODUCTS SOURCING TAX CRED- IT 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 PHYS- ICAL 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. S 2. This act shall take effect immediately.