S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    161
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 4, 2023
                                ___________
 
 Introduced  by  M.  of A. WOERNER, FAHY, THIELE, COLTON, CARROLL, JONES,
   SMULLEN, LEMONDES, L. ROSENTHAL -- Multi-Sponsored  by  --  M.  of  A.
   SEAWRIGHT,  STECK  --  read once and referred to the Committee on Ways
   and Means

 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 (ooo) to read as follows:
   (OOO) 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,
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01690-01-3
 A. 161                              2
 
 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
 ANY  SUCCESSOR  IN INTEREST TO SUCH LAND FOR THE DURATION OF THE TERM OF
 THE AGREEMENT; AND
 A. 161                              3
 
   (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 (OOO) 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 59 to read as follows:
   59.  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
 ROADS,  EASEMENTS  OR RIGHTS-OF-WAY, OR ENERGY TRANSMISSION CORRIDORS OR
 A. 161                              4
 
 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
   (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-
 A. 161                              5
 
 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-NINE 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  (xlx)  to  read  as
 follows:
 (XLX) FOREST STEWARDSHIP AND         AMOUNT OF CREDIT UNDER
 HABITAT CONSERVATION                 SUBDIVISION FIFTY-NINE OF
 CREDIT UNDER SUBSECTION (OOO)        SECTION TWO HUNDRED TEN-B
   § 6. This act shall take effect immediately.