NY State Senate Bill 2017-S1606

Senate Bill S1606

2017-2018 Legislative Session

Relates to establishing a credit for donation to a food bank or other emergency food program by New York state farmers

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
Jan 03, 2018	referred to investigations and government operations returned to senate died in assembly
Jan 30, 2017	referred to ways and means delivered to assembly passed senate
Jan 23, 2017	ordered to third reading cal.56 committee discharged and committed to rules
Jan 10, 2017	referred to investigations and government operations

Votes

- Jan 30, 2017 - Floor Vote
  S1606
  
  61
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jan 30, 2017
      
      aye (61)
      
      Addabbo Jr.
      
      Akshar
      
      Alcantara
      
      Amedore
      
      Avella
      
      Bailey
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Croci
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Helming
      
      Hoylman-Sigal
      
      Jacobs
      
      Kaminsky
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Marcellino
      
      Marchione
      
      Montgomery
      
      Murphy
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Perkins
      
      Persaud
      
      Phillips
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
      
      excused (2)
      
      Hannon
      
      Little
  Jan 23, 2017 - Rules Committee Vote
  S1606
  
  24
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jan 23, 2017
      
      aye (24)
      
      Bonacic
      
      Breslin
      
      Carlucci
      
      DeFrancisco
      
      Dilan
      
      Flanagan
      
      Gallivan
      
      Gianaris
      
      Griffo
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Montgomery
      
      Parker
      
      Ranzenhofer
      
      Robach
      
      Savino
      
      Seward
      
      Squadron
      
      Stewart-Cousins
      
      Valesky
      
      excused (1)
      
      Perkins

co-Sponsors

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2017-S1606 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§606 & 210-B, Tax L
Versions Introduced in 2015-2016 Legislative Session:: S7833

2017-S1606 (ACTIVE) - Summary

Establishes a tax credit for donation of wholesome food to a food bank or other emergency food program by eligible New York state farmers.

2017-S1606 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S1606

 TITLE OF BILL :  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

 PURPOSE OR GENERAL IDEA OF BILL :

To create a credit for donation to a food bank or other emergency food
program by New York state farmers of twenty-five percent of wholesale
cost of donations, up to five thousand dollars per year.

 SPECIFIC PROVISIONS :

Section one amends the tax law to add subsection (n-2) to section 606
creating a credit for farm donations to food bank or emergency food
program. Allowing an eligible farmer, who must be a New York State
resident taxpayer, a credit of twenty-five percent of the wholesale
cost of the taxpayer's qualified donations, up to five thousand
dollars per year.

Section two amends the tax law by adding a new clause to subparagraph
(B) of paragraph 1 of subsection (i) to add farm donations to food
bank or emergency food program credit under subsection (n-2)

Section three amends the tax law by adding a new subdivision 52 to

section 210-B for the credit for farm donations to food bank or
emergency food program.

Section four ensures that the department of agriculture and markets,
in conjunction with the department of taxation and finance establish
an accepted wholesale price of the taxpayer's qualified donations and
promulgate any necessary rules and regulations.

Section five sets forth the effective date.

 JUSTIFICATION :

New York farmers have historically been very generous in donating food
to those in need and in 2014 they donated a record amount. of more
than 10 million pounds of food to the statewide food bank system It is
only natural for the people who grow food to want all members of their
community to have access to that food, especially the neediest among
them. While the economy is rebounding and employment is increasing,
there are still an alarming number of families that continue to seek
the assistance of the food pantries, soup kitchens and other feeding
programs that are serviced by the food bank system in New York State.

There is even more food in the state that could be donated, but
farmers face some real barriers to getting this unharvested or
unmarketed food into the emergency food system. Sometimes the real
costs of labor to harvest additional food from the fields, the cost of
the boxes or bins to package it, and the expense to transport this all
to the food bank are too great to overcome. A tax credit would help
farmers re-coop some of these expenses so that a donation does not
incur such a great out-of-pocket expense for the farmer. This tax
credit would help remove part of the barrier to greater donations.
Farmers can receive a tax credit for charitable donations of food at
the federal level, but this credit cannot be used by sole proprietors
and many others because of the accounting methods required. The
federal deduction is a based on the basis of the donated product and
farmers that use a cash method of accounting, which is used by almost
all farmers in New York, can't calculate a basis and therefore are
prevented from using the federal credit. In addition, it has not been
enough of an incentive to remove all of the cost barriers to greater
food donations that farmers in New York face. A state tax credit will
benefit both the farmers who wish to provide more donations and the
families will be able to receive this healthy, wholesome, locally
grown food.

 PRIOR LEGISLATIVE HISTORY :

New Bill

 FISCAL IMPLICATIONS :

To be determined

 EFFECTIVE DATE :
This act shall take effect on January 1, 2018 and shall apply to
taxable years beginning on or after such date.

2017-S1606 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1606
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 10, 2017
                                ___________
 
 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 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 NEW YORK STATE RESIDENT 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD04310-01-7

 S. 1606                             2
 
 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.
   (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 NEW YORK STATE RESIDENT 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  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

 S. 1606                             3
 
 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
 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 January 1, 2018 and shall apply  to
 taxable years beginning on or after such date.

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