S T A T E   O F   N E W   Y O R K
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                                  4332

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             March 29, 2011
                               ___________

Introduced  by Sen. CARLUCCI -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

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

              

S. 4332                             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.