Bill S784-2011

Provides that excess investment tax credit amounts may be refundable to operators of a farm operation

Provides that excess investment tax credit amounts may be refundable to operators of a farm operation.

Details

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

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.


Text

STATE OF NEW YORK ________________________________________________________________________ 784 2011-2012 Regular Sessions IN 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
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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