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

                                  1301

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 5, 2011
                               ___________

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

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
              

A. 1301                             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.