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.

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S776-2011 Actions

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

S776-2011 Memo

BILL NUMBER:S776

TITLE OF BILL:

An act
to amend the tax law, in relation to establishing a grapevine replacement
personal income tax credit

PURPOSE:

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.

JUSTIFICATION:

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.

S776-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                     776

                         2011-2012 Regular Sessions

                              I N  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