Establishes a personal income tax credit for taxpayers whose federal gross income from farming is at least two-thirds of excess federal gross income, for the cost of replacing concord grapevines by such farmers.
TITLE OF BILL:
An act to amend the tax law, in relation to establishing a grapevine replacement personal income tax credit
This bill establishes a refundable personal income tax credit to farmers for the cost of replacing Concord grapevines with a new grape variety.
SUMMARY OF PROVISIONS:
Section 606 of the Tax Law is amended to allow for a refundable personal income tax credit to farmers for the cost of grapevines that are replacing existing Concord grapevines, provided that the new grapevines are not of any Concord variety.
This legislation was created to encourage the planting of new grape varieties in response to New York's evolving grape and wine market. Many New York grape producers have built their businesses on the native Concord grape which is used in juices; jellies and other food products. Concord grape growers are currently experiencing a severe glut in national grape juice concentrate markets, due to overproduction in California, and are seeking innovative ways to continue farming. With a growing interest and national demand for New York wines, grape growers are turning to vinifera grapes and other high-quality hybrid varieties which offer consistent fruit quality and production. This legislation provides an incentive for farmers to pursue this costly but worthwhile investment to help diversify grape acreage and remain competitive in the global marketplace.
LEGISLATIVE HISTORY: 2009-2010: S.2487 Referred to Investigations & Government Operations 2007-2008: S.2774/A.5374 Referred to Investigations & Government Operations 2006: S.7235/A.11539 Referred to Investigations & Government Operations
FISCAL IMPLICATIONS: Undetermined at this time.
EFFECTIVE DATE: Effective immediately.
STATE OF NEW YORK ________________________________________________________________________ 776 2011-2012 Regular Sessions IN SENATE (PREFILED) January 5, 2011 ___________Introduced by Sens. YOUNG, RANZENHOFER -- read twice and ordered print- ed, and when printed to be committed to the Committee on Investi- gations and Government Operations AN ACT to amend the tax law, in relation to establishing a grapevine replacement personal income tax credit THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 606 of the tax law is amended by adding a new subsection (ss) to read as follows: (SS) GRAPEVINE REPLACEMENT TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER WHOSE FEDERAL GROSS INCOME FROM FARMING FOR THE TAXABLE YEAR IS AT LEAST TWO-THIRDS OF EXCESS FEDERAL GROSS INCOME SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR THE REPLACEMENT OF GRAPEVINES OF ANY CONCORD VARIETY FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND ELEVEN. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO THE SUM OF THE COST OF GRAPEVINES THAT ARE PURCHASED AND PLANTED FOR THE PURPOSE OF REPLACING GRAPEVINES OF ANY CONCORD VARI- ETY. THIS CREDIT SHALL NOT APPLY TO GRAPEVINES OF ANY CONCORD VARIETY. (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEARS SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03450-01-1