S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6192
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 27, 2017
                                ___________
 
 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-2) to read as follows:
   (N-2)  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 EIGHTEEN. 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.
              

                                                            LBD07127-01-7

 A. 6192                             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.
   §  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-TWO
 CREDIT UNDER SUBSECTION (N-2)        OF SECTION TWO HUNDRED
                                      TEN-B
   §  3. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 52 to read as follows:
   52. 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 EIGHTEEN. 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. 6192                             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.
   §  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.
   §  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.