S T A T E O F N E W Y O R K
________________________________________________________________________
138--A
2017-2018 Regular Sessions
I N S E N A T E
(PREFILED)
January 4, 2017
___________
Introduced by Sens. LITTLE, ADDABBO, AVELLA, GALLIVAN, HOYLMAN, MURPHY,
SEWARD, VALESKY -- read twice and ordered printed, and when printed to
be committed to the Committee on Investigations and Government Oper-
ations -- recommitted to the Committee on Investigations and Govern-
ment 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 establishing a forestry
stewardship and habitat conservation credit for personal income and
business franchise taxes
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 (ccc) to read as follows:
(CCC) FORESTRY STEWARDSHIP AND HABITAT CONSERVATION CREDIT. (1) IN THE
CASE OF A TAXPAYER WHO OWNS LAND THAT IS SUBJECT TO AN AGREEMENT WITH
THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION, BY WHICH SUCH LAND IS
COMMITTED TO FORESTRY STEWARDSHIP, OR HABITAT CONSERVATION, OR BOTH,
THERE SHALL BE ALLOWED A CREDIT FOR TWENTY-FIVE PERCENT OF THE REAL
PROPERTY TAXES PAID ON SUCH LAND. IN NO EVENT SHALL THE CREDIT ALLOWED
UNDER THIS SUBSECTION IN COMBINATION WITH ANY OTHER CREDIT FOR SUCH REAL
PROPERTY TAXES UNDER THIS SECTION EXCEED THE TOTAL AMOUNT OF SUCH TAXES
PAID DURING THE TAXABLE YEAR.
(2) FOR THE PURPOSES OF THIS SUBSECTION:
(A) "ELIGIBLE TRACT" SHALL MEAN A TRACT OF LAND OF AT LEAST TWENTY-
FIVE CONTIGUOUS ACRES THAT HAS BEEN INSPECTED BY THE DEPARTMENT OF ENVI-
RONMENTAL CONSERVATION, A WILDLIFE BIOLOGIST CERTIFIED BY THE WILDLIFE
SOCIETY, OR A FISHERIES BIOLOGIST CERTIFIED BY THE AMERICAN FISHERIES
SOCIETY, AND BASED ON SUCH INSPECTION IS DETERMINED BY THE DEPARTMENT OF
ENVIRONMENTAL CONSERVATION TO BE: VALUABLE HABITAT FOR WILDLIFE, FISH,
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00034-02-8
S. 138--A 2
SHELLFISH OR CRUSTACEA; OR SAFE AND SUITABLE FOR FISH OR WILDLIFE-RELAT-
ED RECREATION, INCLUDING FISHING, HUNTING, TRAPPING AND WILDLIFE OBSER-
VATION; OR BOTH. LAND DIVIDED ONLY BY FEDERAL, STATE, COUNTY OR TOWN
ROADS, EASEMENTS OR RIGHTS-OF-WAY, OR ENERGY TRANSMISSION CORRIDORS OR
SIMILAR FACILITIES SHALL BE CONSIDERED CONTIGUOUS FOR PURPOSES OF THIS
SECTION.
(B) "AGREEMENT" SHALL MEAN A WRITTEN AGREEMENT BETWEEN THE DEPARTMENT
OF ENVIRONMENTAL CONSERVATION AND THE OWNER OF AN ELIGIBLE TRACT,
EXECUTED BY BOTH PARTIES, BY WHICH THE ELIGIBLE TRACT IS COMMITTED TO
HABITAT CONSERVATION, OR FORESTRY STEWARDSHIP, OR BOTH, FOR A PERIOD OF
NOT LESS THAN FIVE YEARS.
(C) "APPROVED HABITAT CONSERVATION PLAN" SHALL MEAN A PLAN, APPROVED
BY THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION, FOR THE MANAGEMENT OF
AN ELIGIBLE TRACT WHICH SHALL CONTAIN REQUIREMENTS AND STANDARDS WITH
WHICH THE OWNER OF THE ELIGIBLE TRACT MUST COMPLY IN ORDER TO CONSERVE
THE VALUE OF THE LAND AS WILDLIFE, FISH, SHELLFISH, OR CRUSTACEA HABI-
TAT.
(D) "FORESTRY STEWARDSHIP" SHALL MEAN PARTICIPATION IN A FOREST
CERTIFICATION PROGRAM (SUCH AS FOREST STEWARDSHIP COUNCIL CERTIFICATION,
SUSTAINABLE FORESTRY INITIATIVE, AMERICAN TREE FARM PROGRAM, ETC.)
RECOGNIZED IN THE REGULATIONS OF THE DEPARTMENT OF ENVIRONMENTAL CONSER-
VATION.
(3) THERE IS HEREBY CREATED A NEW YORK STATE FORESTRY STEWARDSHIP AND
HABITAT CONSERVATION PROGRAM FOR THE PURPOSE OF PROVIDING FORESTED LANDS
IN THE STATE AND CONSERVING THE VALUE OF LAND IN THE STATE AS WILDLIFE,
FISH, SHELLFISH OR CRUSTACEA HABITAT.
(4) A LANDOWNER MAY MAKE APPLICATION TO THE DEPARTMENT OF ENVIRON-
MENTAL CONSERVATION, ON FORMS PRESCRIBED BY SUCH DEPARTMENT, TO HAVE
LAND INCLUDED IN THE NEW YORK STATE HABITAT CONSERVATION AND FORESTRY
STEWARDSHIP PROGRAM. IF, BASED ON AN INSPECTION OF THE LAND BY THE
DEPARTMENT OF ENVIRONMENTAL CONSERVATION, OR A WILDLIFE BIOLOGIST CERTI-
FIED BY THE WILDLIFE SOCIETY, OR A FISHERIES BIOLOGIST CERTIFIED BY THE
AMERICAN FISHERIES SOCIETY, THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
DETERMINES THAT SUCH LAND IS AN ELIGIBLE TRACT, IT SHALL NOTIFY THE
LANDOWNER THAT THE LAND IS ELIGIBLE FOR INCLUSION IN THE NEW YORK STATE
HABITAT CONSERVATION AND FORESTRY STEWARDSHIP PROGRAM.
(5) THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION MAY, IN ITS
DISCRETION, ENTER INTO AGREEMENTS WITH OWNERS OF ELIGIBLE TRACTS FOR
PURPOSES OF FORESTRY STEWARDSHIP, OR HABITAT CONSERVATION, OR BOTH. SUCH
AGREEMENTS SHALL BE FOR A MINIMUM DURATION OF FIVE YEARS, AND SHALL
CONTAIN A DESCRIPTION OF THE PROPERTY THAT IS THE SUBJECT OF THE AGREE-
MENT, AND SUCH TERMS AND CONDITIONS AS THE DEPARTMENT DEEMS APPROPRIATE,
INCLUDING, BUT NOT LIMITED TO:
(A) FOR FORESTRY STEWARDSHIP AGREEMENTS, A DESCRIPTION OF THE PARTIC-
IPATION IN A FOREST CERTIFICATION PROGRAM FOR A PERIOD OF NOT LESS THAN
FIVE YEARS;
(B) FOR HABITAT CONSERVATION AGREEMENTS, A REQUIREMENT THAT THE LAND-
OWNER DEVELOP A HABITAT CONSERVATION PLAN AND IMPLEMENT THE PLAN FOR A
PERIOD OF NOT LESS THAN FIVE YEARS;
(C) FOR HABITAT CONSERVATION AND FORESTRY STEWARDSHIP AGREEMENTS, A
REQUIREMENT THAT THE LANDOWNER DEVELOP A HABITAT CONSERVATION PLAN AND
IMPLEMENT THE PLAN FOR A PERIOD OF NOT LESS THAN FIVE YEARS; AND A
DESCRIPTION OF PARTICIPATION IN A FOREST CERTIFICATION PROGRAM FOR A
PERIOD OF NOT LESS THAN FIVE YEARS;
(D) A REQUIREMENT THAT THE LANDOWNER'S OBLIGATIONS CONCERNING THE LAND
UNDER THE TERMS OF THE AGREEMENT, AS WELL AS ANY BENEFITS, SHALL PASS TO
S. 138--A 3
ANY SUCCESSOR IN INTEREST TO SUCH LAND FOR THE DURATION OF THE TERM OF
THE AGREEMENT; AND
(E) A REQUIREMENT THAT A COPY OF THE AGREEMENT SHALL BE DULY RECORDED
AND INDEXED AS SUCH IN THE OFFICE OF THE RECORDING OFFICER FOR THE COUN-
TY OR COUNTIES WHERE THE LAND IS SITUATE IN THE MANNER PRESCRIBED BY
ARTICLE NINE OF THE REAL PROPERTY LAW; AND THAT ANY SUBSEQUENT INSTRU-
MENT OF CONVEYANCE RELATING TO THE PROPERTY ENCUMBERED BY THE AGREEMENT
SHALL REFERENCE, BY BOOK AND PAGE NUMBER, THE AGREEMENT; AND THAT SUCH
INSTRUMENT SHALL ALSO SPECIFY THAT THE PROPERTY IS SUBJECT TO THE
RESTRICTIONS CONTAINED IN THE AGREEMENT; AND THAT AN INSTRUMENT FOR THE
PURPOSE OF CREATING, CONVEYING, MODIFYING OR TERMINATING THE AGREEMENT
SHALL NOT BE EFFECTIVE UNLESS RECORDED.
(6) THE AMOUNT OF THE CREDIT THAT MAY BE CLAIMED BY A TAXPAYER PURSU-
ANT TO THIS SUBSECTION SHALL NOT EXCEED TEN THOUSAND DOLLARS IN ANY
GIVEN YEAR.
(7) IF THE AMOUNT OF THE CREDIT UNDER THIS SUBSECTION FOR ANY TAXABLE
YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL BE
TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORD-
ANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTI-
CLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
§ 2. Paragraph 4 of subsection (n) of section 606 of the tax law, as
amended by section 2 of part F of chapter 62 of the laws of 2006, is
amended to read as follows:
(4) Qualified agricultural property. For purposes of this subsection,
the term "qualified agricultural property" means land located in this
state which is used in agricultural production, and land improvements,
structures and buildings (excluding buildings used for the taxpayer's
residential purpose) located on such land which are used or occupied to
carry out such production. Qualified agricultural property also includes
land set aside or retired under a federal supply management or soil
conservation program or land that at the time it becomes subject to a
conservation easement, as defined under subsection (kk) of this section,
met the requirements under this paragraph, AND LAND THAT AT THE TIME IT
BECOMES SUBJECT TO AN AGREEMENT AS DEFINED IN SUBSECTION (CCC) OF THIS
SECTION MET THE REQUIREMENTS UNDER THIS PARAGRAPH.
§ 3. Section 210-B of the tax law is amended by adding a new subdivi-
sion 53 to read as follows:
53. FORESTRY STEWARDSHIP AND HABITAT CONSERVATION CREDIT. (1) IN THE
CASE OF A TAXPAYER WHO OWNS LAND THAT IS SUBJECT TO AN AGREEMENT WITH
THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION, BY WHICH SUCH LAND IS
COMMITTED TO FORESTRY STEWARDSHIP, OR HABITAT CONSERVATION, OR BOTH,
THERE SHALL BE ALLOWED A CREDIT FOR TWENTY-FIVE PERCENT OF THE REAL
PROPERTY TAXES PAID ON SUCH LAND. IN NO EVENT SHALL THE CREDIT ALLOWED
UNDER THIS SUBDIVISION IN COMBINATION WITH ANY OTHER CREDIT FOR SUCH
REAL PROPERTY TAXES UNDER THIS SECTION EXCEED THE TOTAL AMOUNT OF SUCH
TAXES PAID DURING THE TAXABLE YEAR.
(2) FOR THE PURPOSES OF THIS SUBDIVISION:
(A) "ELIGIBLE TRACT" SHALL MEAN A TRACT OF LAND OF AT LEAST TWENTY-
FIVE CONTIGUOUS ACRES THAT HAS BEEN INSPECTED BY THE DEPARTMENT OF ENVI-
RONMENTAL CONSERVATION, A WILDLIFE BIOLOGIST CERTIFIED BY THE WILDLIFE
SOCIETY, OR A FISHERIES BIOLOGIST CERTIFIED BY THE AMERICAN FISHERIES
SOCIETY, AND BASED ON SUCH INSPECTION IS DETERMINED BY THE DEPARTMENT OF
ENVIRONMENTAL CONSERVATION TO BE: VALUABLE HABITAT FOR WILDLIFE, FISH,
SHELLFISH OR CRUSTACEA; OR SAFE AND SUITABLE FOR FISH OR WILDLIFE-RELAT-
ED RECREATION, INCLUDING FISHING, HUNTING, TRAPPING AND WILDLIFE OBSER-
VATION; OR BOTH. LAND DIVIDED ONLY BY FEDERAL, STATE, COUNTY OR TOWN
S. 138--A 4
ROADS, EASEMENTS OR RIGHTS-OF-WAY, OR ENERGY TRANSMISSION CORRIDORS OR
SIMILAR FACILITIES SHALL BE CONSIDERED CONTIGUOUS FOR PURPOSES OF THIS
SECTION.
(B) "AGREEMENT" SHALL MEAN A WRITTEN AGREEMENT BETWEEN THE DEPARTMENT
OF ENVIRONMENTAL CONSERVATION AND THE OWNER OF AN ELIGIBLE TRACT,
EXECUTED BY BOTH PARTIES, BY WHICH THE ELIGIBLE TRACT IS COMMITTED TO
HABITAT CONSERVATION, OR FORESTRY STEWARDSHIP, OR BOTH, FOR A PERIOD OF
NOT LESS THAN FIVE YEARS.
(C) "APPROVED HABITAT CONSERVATION PLAN" SHALL MEAN A PLAN, APPROVED
BY THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION, FOR THE MANAGEMENT OF
AN ELIGIBLE TRACT WHICH SHALL CONTAIN REQUIREMENTS AND STANDARDS WITH
WHICH THE OWNER OF THE ELIGIBLE TRACT MUST COMPLY IN ORDER TO CONSERVE
THE VALUE OF THE LAND AS WILDLIFE, FISH, SHELLFISH, OR CRUSTACEA HABI-
TAT.
(D) "FORESTRY STEWARDSHIP" SHALL MEAN PARTICIPATION IN A FOREST
CERTIFICATION PROGRAM (SUCH AS FOREST STEWARDSHIP COUNCIL CERTIFICATION,
SUSTAINABLE FORESTRY INITIATIVE, AMERICAN TREE FARM PROGRAM, ETC.)
RECOGNIZED IN THE REGULATIONS OF THE DEPARTMENT OF ENVIRONMENTAL CONSER-
VATION.
(3) THERE IS HEREBY CREATED A NEW YORK STATE FORESTRY STEWARDSHIP AND
HABITAT CONSERVATION PROGRAM FOR THE PURPOSE OF PROVIDING FORESTED LANDS
IN THE STATE AND CONSERVING THE VALUE OF LAND IN THE STATE AS WILDLIFE,
FISH, SHELLFISH OR CRUSTACEA HABITAT.
(4) A LANDOWNER MAY MAKE APPLICATION TO THE DEPARTMENT OF ENVIRON-
MENTAL CONSERVATION, ON FORMS PRESCRIBED BY SUCH DEPARTMENT, TO HAVE
LAND INCLUDED IN THE NEW YORK STATE HABITAT CONSERVATION AND FORESTRY
STEWARDSHIP PROGRAM. IF, BASED ON AN INSPECTION OF THE LAND BY THE
DEPARTMENT OF ENVIRONMENTAL CONSERVATION, OR A WILDLIFE BIOLOGIST CERTI-
FIED BY THE WILDLIFE SOCIETY, OR A FISHERIES BIOLOGIST CERTIFIED BY THE
AMERICAN FISHERIES SOCIETY, THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
DETERMINES THAT SUCH LAND IS AN ELIGIBLE TRACT, IT SHALL NOTIFY THE
LANDOWNER THAT THE LAND IS ELIGIBLE FOR INCLUSION IN THE NEW YORK STATE
HABITAT CONSERVATION AND FORESTRY STEWARDSHIP PROGRAM.
(5) THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION MAY, IN ITS
DISCRETION, ENTER INTO AGREEMENTS WITH OWNERS OF ELIGIBLE TRACTS FOR
PURPOSES OF HABITAT CONSERVATION, OR FORESTRY STEWARDSHIP, OR BOTH. SUCH
AGREEMENTS SHALL BE FOR A MINIMUM DURATION OF FIVE YEARS, AND SHALL
CONTAIN A DESCRIPTION OF THE PROPERTY THAT IS THE SUBJECT OF THE AGREE-
MENT, AND SUCH TERMS AND CONDITIONS AS THE DEPARTMENT DEEMS APPROPRIATE,
INCLUDING, BUT NOT LIMITED TO:
(A) FOR FORESTRY STEWARDSHIP AGREEMENTS, A DESCRIPTION OF THE PARTIC-
IPATION IN A FOREST CERTIFICATION PROGRAM FOR A PERIOD OF NOT LESS THAN
FIVE YEARS;
(B) FOR HABITAT CONSERVATION AGREEMENTS, A REQUIREMENT THAT THE LAND-
OWNER DEVELOP A HABITAT CONSERVATION PLAN AND IMPLEMENT THE PLAN FOR A
PERIOD OF NOT LESS THAN FIVE YEARS;
(C) FOR HABITAT CONSERVATION AND FORESTRY STEWARDSHIP AGREEMENTS, A
REQUIREMENT THAT THE LANDOWNER DEVELOP A HABITAT CONSERVATION PLAN AND
IMPLEMENT THE PLAN FOR A PERIOD OF NOT LESS THAN FIVE YEARS; AND A
DESCRIPTION OF PARTICIPATION IN A FOREST CERTIFICATION PROGRAM FOR A
PERIOD OF NOT LESS THAN FIVE YEARS;
(D) A REQUIREMENT THAT THE LANDOWNER'S OBLIGATIONS CONCERNING THE LAND
UNDER THE TERMS OF THE AGREEMENT, AS WELL AS ANY BENEFITS, SHALL PASS TO
ANY SUCCESSOR IN INTEREST TO SUCH LAND FOR THE DURATION OF THE TERM OF
THE AGREEMENT; AND
S. 138--A 5
(E) A REQUIREMENT THAT A COPY OF THE AGREEMENT SHALL BE DULY RECORDED
AND INDEXED AS SUCH IN THE OFFICE OF THE RECORDING OFFICER FOR THE COUN-
TY OR COUNTIES WHERE THE LAND IS SITUATE IN THE MANNER PRESCRIBED BY
ARTICLE NINE OF THE REAL PROPERTY LAW; AND THAT ANY SUBSEQUENT INSTRU-
MENT OF CONVEYANCE RELATING TO THE PROPERTY ENCUMBERED BY THE AGREEMENT
SHALL REFERENCE, BY BOOK AND PAGE NUMBER, THE AGREEMENT; AND THAT SUCH
INSTRUMENT SHALL ALSO SPECIFY THAT THE PROPERTY IS SUBJECT TO THE
RESTRICTIONS CONTAINED IN THE AGREEMENT; AND THAT AN INSTRUMENT FOR THE
PURPOSE OF CREATING, CONVEYING, MODIFYING OR TERMINATING THE AGREEMENT
SHALL NOT BE EFFECTIVE UNLESS RECORDED.
(6) THE AMOUNT OF THE CREDIT THAT MAY BE CLAIMED BY A TAXPAYER PURSU-
ANT TO THIS SUBDIVISION SHALL NOT EXCEED TEN THOUSAND DOLLARS IN ANY
GIVEN YEAR.
(7) IF THE AMOUNT OF THE CREDIT UNDER THIS SUBDIVISION FOR ANY TAXABLE
YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL BE
TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORD-
ANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS
CHAPTER, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
§ 4. Paragraph (d) of subdivision 11 of section 210-B of the tax law,
as added by section 17 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(d) Qualified agricultural property. For purposes of this subdivision,
the term "qualified agricultural property" means land located in this
state which is used in agricultural production, and land improvements,
structures and buildings (excluding buildings used for the taxpayer's
residential purpose) located on such land which are used or occupied to
carry out such production. Qualified agricultural property also includes
land set aside or retired under a federal supply management or soil
conservation program [or], land that at the time it becomes subject to a
conservation easement met the requirements under this paragraph AND LAND
THAT AT THE TIME IT BECOMES SUBJECT TO AN AGREEMENT AS DEFINED UNDER
SUBDIVISION FIFTY-THREE OF THIS SECTION, MET THE REQUIREMENTS UNDER THIS
PARAGRAPH.
§ 5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xliv) to read as
follows:
(XLIV) FOREST STEWARDSHIP AND AMOUNT OF CREDIT UNDER
HABITAT CONSERVATION SUBDIVISION FIFTY-THREE OF
CREDIT UNDER SUBSECTION (CCC) SECTION TWO HUNDRED TEN-B
§ 6. This act shall take effect immediately.
