S T A T E   O F   N E W   Y O R K
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                                  8075

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              June 5, 2015
                               ___________

Introduced  by  M. of A. MOYA -- read once and referred to the Committee
  on Ways and Means

AN ACT to amend the tax law, in relation to a credit for donations to  a
  food bank or other emergency food program by New York state farmers

  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 (n-1) to read as follows:
  (N-1)  CREDIT  FOR  FARM  DONATIONS  TO  FOOD  BANK  OR EMERGENCY FOOD
PROGRAM. (1) GENERAL. IN THE CASE OF A TAXPAYER WHO IS AN ELIGIBLE FARM-
ER, THERE SHALL BE ALLOWED A  CREDIT,  TO  BE  COMPUTED  AS  HEREINAFTER
PROVIDED  AGAINST  THE  TAX IMPOSED BY THIS ARTICLE FOR TAXABLE YEARS ON
AND AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN. THE AMOUNT OF THE  CREDIT
SHALL  BE  TWENTY-FIVE  PERCENT  OF THE WHOLESALE COST OF THE TAXPAYER'S
QUALIFIED DONATIONS, AS DEFINED IN PARAGRAPH THREE OF  THIS  SUBSECTION,
MADE  TO  ANY  FOOD  BANK  OR OTHER PUBLIC, CHARITABLE OR NOT-FOR-PROFIT
EMERGENCY FOOD PROGRAM OPERATING WITHIN THIS STATE, UP TO FIVE  THOUSAND
DOLLARS PER YEAR.
  (2) ELIGIBLE FARMER. FOR PURPOSES OF THIS SUBSECTION, THE TERM "ELIGI-
BLE FARMER" MEANS A TAXPAYER WHOSE FEDERAL GROSS INCOME FROM FARMING FOR
THE  TAXABLE YEAR IS AT LEAST TWO-THIRDS OF EXCESS FEDERAL GROSS INCOME.
EXCESS FEDERAL GROSS INCOME MEANS THE AMOUNT  OF  FEDERAL  GROSS  INCOME
FROM  ALL SOURCES FOR THE TAXABLE YEAR REDUCED BY THE SUM (NOT TO EXCEED
THIRTY THOUSAND DOLLARS) OF THOSE ITEMS INCLUDED IN FEDERAL GROSS INCOME
WHICH CONSIST OF (I) EARNED INCOME,  (II)  PENSION  PAYMENTS,  INCLUDING
SOCIAL  SECURITY  PAYMENTS,  (III)  INTEREST,  AND  (IV)  DIVIDENDS. FOR
PURPOSES OF THIS PARAGRAPH, THE TERM "EARNED INCOME" SHALL  MEAN  WAGES,
SALARIES, TIPS AND OTHER EMPLOYEE COMPENSATION, AND THOSE ITEMS OF GROSS
INCOME  WHICH  ARE  INCLUDIBLE  IN  THE COMPUTATION OF NET EARNINGS FROM
SELF-EMPLOYMENT. FOR THE PURPOSES OF THIS PARAGRAPH, PAYMENTS  FROM  THE
STATE'S  FARMLAND  PROTECTION PROGRAM, ADMINISTERED BY THE DEPARTMENT OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11050-05-5
              

A. 8075                             2

AGRICULTURE AND MARKETS, SHALL BE INCLUDED AS FEDERAL GROSS INCOME  FROM
FARMING FOR OTHERWISE ELIGIBLE FARMERS.
  (3)  QUALIFIED  DONATION.  FOR  PURPOSES  OF THIS SUBSECTION, THE TERM
"QUALIFIED DONATION" MEANS A DONATION OF ANY FRESH FOOD  ITEM  GROWN  OR
PRODUCED  BY  AN  ELIGIBLE FARMER TO A FOOD BANK OR OTHER EMERGENCY FOOD
PROGRAM OPERATING WITHIN THIS STATE.
  (4) APPLICATION OF CREDIT. THE CREDIT ALLOWED  UNDER  THIS  SUBSECTION
FOR  ANY  TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE MINIMUM TAX FIXED BY THIS ARTICLE.  HOWEVER, IF THE  AMOUNT  OF
CREDIT  ALLOWED  UNDER  THIS SUBSECTION FOR ANY TAXABLE YEAR REDUCES THE
TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS  NOT  DEDUCTIBLE  IN  SUCH
TAXABLE  YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED IN ACCORDANCE WITH  THE  PROVISIONS  OF  SECTION  ONE  THOUSAND
EIGHTY-SIX  OF  THIS  CHAPTER.    PROVIDED,  HOWEVER,  THE PROVISIONS OF
SUBSECTION (C) OF SECTION ONE  THOUSAND  EIGHTY-EIGHT  OF  THIS  CHAPTER
NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
  S  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new  clause  (xliii)  to  read  as
follows:
(XLIII) FARM DONATIONS TO FOOD       AMOUNT OF CREDIT UNDER
BANK OR EMERGENCY FOOD PROGRAM       SUBDIVISION FIFTY-ONE
CREDIT UNDER SUBSECTION (N-1)        OF SECTION TWO HUNDRED
                                     TEN-B
  S  3. Section 210-B of the tax law is amended by adding a new subdivi-
sion 51 to read as follows:
  51. CREDIT FOR FARM DONATIONS TO FOOD BANK OR EMERGENCY FOOD PROGRAM.
  (A) GENERAL. IN THE CASE OF A TAXPAYER  WHO  IS  AN  ELIGIBLE  FARMER,
THERE  SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED
AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR TAXABLE YEARS  BEGINNING  ON
AND  AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN. THE AMOUNT OF THE CREDIT
SHALL BE TWENTY-FIVE PERCENT OF THE WHOLESALE  COST  OF  THE  TAXPAYER'S
QUALIFIED  DONATIONS,  AS  DEFINED IN PARAGRAPH (C) OF THIS SUBDIVISION,
MADE TO ANY FOOD BANK OR  OTHER  PUBLIC,  CHARITABLE  OR  NOT-FOR-PROFIT
EMERGENCY  FOOD PROGRAM OPERATING WITHIN THIS STATE, UP TO FIVE THOUSAND
DOLLARS DURING THE TAXABLE YEAR.
  (B) ELIGIBLE FARMER.  FOR  PURPOSES  OF  THIS  SUBDIVISION,  THE  TERM
"ELIGIBLE FARMER" MEANS A TAXPAYER WHOSE FEDERAL GROSS INCOME FROM FARM-
ING  FOR THE TAXABLE YEAR IS AT LEAST TWO-THIRDS OF EXCESS FEDERAL GROSS
INCOME. EXCESS FEDERAL GROSS INCOME MEANS THE AMOUNT  OF  FEDERAL  GROSS
INCOME  FROM ALL SOURCES FOR THE TAXABLE YEAR REDUCED BY THE SUM (NOT TO
EXCEED THIRTY THOUSAND DOLLARS) OF THOSE ITEMS INCLUDED IN FEDERAL GROSS
INCOME WHICH CONSIST  OF  (I)  EARNED  INCOME,  (II)  PENSION  PAYMENTS,
INCLUDING  SOCIAL SECURITY PAYMENTS, (III) INTEREST, AND (IV) DIVIDENDS.
FOR PURPOSES OF THIS PARAGRAPH, THE  TERM  "EARNED  INCOME"  SHALL  MEAN
WAGES,  SALARIES,  TIPS AND OTHER EMPLOYEE COMPENSATION, AND THOSE ITEMS
OF GROSS INCOME WHICH ARE INCLUDIBLE IN THE COMPUTATION OF NET  EARNINGS
FROM  SELF-EMPLOYMENT. FOR THE PURPOSES OF THIS PARAGRAPH, PAYMENTS FROM
THE STATE'S FARMLAND PROTECTION PROGRAM, ADMINISTERED BY THE  DEPARTMENT
OF  AGRICULTURE  AND  MARKETS, SHALL BE INCLUDED AS FEDERAL GROSS INCOME
FROM FARMING FOR OTHERWISE ELIGIBLE FARMERS.
  (C) QUALIFIED DONATION. FOR PURPOSES OF  THIS  SUBDIVISION,  THE  TERM
"QUALIFIED  DONATION"  MEANS  A DONATION OF ANY FRESH FOOD ITEM GROWN OR
PRODUCED BY AN ELIGIBLE FARMER TO A FOOD BANK OR  OTHER  EMERGENCY  FOOD
PROGRAM OPERATING WITHIN THIS STATE.
  (D)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR  TO  LESS

A. 8075                             3

THAN  THE  MINIMUM TAX FIXED BY THIS ARTICLE.  HOWEVER, IF THE AMOUNT OF
CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR  REDUCES  THE
TAX  TO  SUCH  AMOUNT,  ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
TAXABLE  YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED IN ACCORDANCE WITH  THE  PROVISIONS  OF  SECTION  ONE  THOUSAND
EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
SUBSECTION (C) OF SECTION ONE  THOUSAND  EIGHTY-EIGHT  OF  THIS  CHAPTER
NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
  S  4.  The  department of agriculture and markets, in conjunction with
the department of taxation and  finance,  shall  establish  an  accepted
wholesale price of the taxpayer's qualified donations and promulgate any
necessary rules and regulations.
  S  5. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a  law  and  shall  apply  to
taxable years beginning on or after such date.