NY State Senate Bill 2015-S4740A

Senate Bill S4740A

2015-2016 Legislative Session

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

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 04, 2016	print number 4740a
Feb 04, 2016	amend and recommit to investigations and government operations
Jan 06, 2016	referred to investigations and government operations
Apr 15, 2015	referred to investigations and government operations

Bill Amendments

Original

A (Active)

2015-S4740 - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§210-B & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S2431
2011-2012: S784
2013-2014: S2083
2017-2018: S1446, S1738
2019-2020: S922, S4696
2021-2022: S3639
2023-2024: S1142

2015-S4740 - Summary

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

2015-S4740 - Sponsor Memo

                                BILL NUMBER:S4740

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 OR GENERAL IDEA OF BILL:

To allow farmers to receive the investment tax credit as a fully
refundable credit.

SUMMARY OF SPECIFIC PROVISIONS:

Amends the tax law to provide that, as it applies to farm operations,
the investment tax credit shall become a refundable credit.

JUSTIFICATION:

This state is home to some 38,000 farms encompassing roughly 7.8
million acres of cropland, pasture and woodlands from Erie County to
Suffolk County. 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 farmers survive.

As part of that, when farmers make long term investments in their
operations they are, often times, eligible for the investment tax
credit (ITC). As it currently stands, however, unlike the agricultural
school tax credit, the investment tax credit is not refundable - so if
a farmer has no taxable income, he or she cannot receive the benefit
of the ITC. To remedy this and to assist our farmers with continuing
to make investment in their agri-enterprises, this bill would simply
provide that farmers could receive the ITC as a fully refundable
credit just as they do the school tax credit. By making this small
change our farmers, overall, could receive a large and needed benefit
that would enable them to continue to update, modernize and invest in
their farms.

PRIOR LEGISLATIVE HISTORY:

2013-14: A1620 referred to Ways & Means
2011-12: A386 referred to Ways & Means/S784 referred to Government
Operations
2009-10: A1088A referred to Ways & Means/S2431A referred to Government
Operations
2007-08: A1233B referred to Ways & Means/S2036A passed Senate
2005-05: A9297 referred to Ways & Means/S7164 referred to Government
Operations

FISCAL IMPLICATIONS:

To be determined.


EFFECTIVE DATE:

This act shall take effect immediately, and shall be deemed to have
been in full force and effect on and after January 1, 2015.

2015-S4740 - Bill Text download pdf

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

                                  4740

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             April 15, 2015
                               ___________

Introduced  by  Sen.  FUNKE  -- 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  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 1 of section 210-B 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 FIFTEEN,
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 FIFTEEN,
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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04209-01-5

S. 4740                             2

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, 2015.

2015-S4740A (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§210-B & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S2431
2011-2012: S784
2013-2014: S2083
2017-2018: S1446, S1738
2019-2020: S922, S4696
2021-2022: S3639
2023-2024: S1142

2015-S4740A (ACTIVE) - Summary

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

2015-S4740A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S4740A

 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 OR GENERAL IDEA OF BILL :

To allow farmers to receive the investment tax credit as a fully
refundable credit.

 SUMMARY OF SPECIFIC PROVISIONS :

Amends the tax law to provide that, as it applies to farm operations,
the investment tax credit shall become a refundable credit.

 JUSTIFICATION :

This state is home to some 38,000 farms encompassing roughly 7.8
million acres of cropland, pasture and woodlands from Erie County to
Suffolk County. 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 farmers survive.

As part of that, when farmers make long term investments in their
operations they are, often times, eligible for the investment tax
credit (ITC). As it currently stands, however, unlike the agricultural
school tax credit, the investment tax credit is not refundable - so if
a farmer has no taxable income, he or she cannot receive the benefit
of the ITC. To remedy this and to assist our farmers with continuing
to make investment in their agri-enterprises, this bill would simply
provide that farmers could receive the ITC as a fully refundable
credit just as they do the school tax credit. By making this small
change our farmers, overall, could receive a large and needed benefit
that would enable them to continue to update, modernize and invest in
their farms.

 PRIOR LEGISLATIVE HISTORY :

2013-14: A1620 referred to Ways & Means
2011-12: A386 referred to Ways & Means/5784 referred to Government
Oper- ations
2009-10: A1088A referred to Ways & Means/S2431A referred to Government
Operations
2007-08: A1233B referred to Ways & Means/S2036A passed Senate
2005-05: A9297 referred to Ways & Means/S7164 referred to Government
Operations

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect immediately, and shall be deemed to have
been in full force and effect on and after January 1, 2016.

2015-S4740A (ACTIVE) - Bill Text download pdf

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

                                 4740--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             April 15, 2015
                               ___________

Introduced  by  Sen.  FUNKE  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations -- recommitted to the Committee on Investigations  and
  Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

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 1 of section 210-B 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 SIXTEEN,
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 SIXTEEN,
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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04209-04-6

S. 4740--A                          2

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, 2016.

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