S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2054
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 23, 2023
                                ___________
 
 Introduced  by  M.  of A. HAWLEY, SMULLEN, ANGELINO, GALLAHAN, LEMONDES,
   DeSTEFANO, DURSO, BRABENEC, MANKTELOW -- read once and referred to the
   Committee on Ways and Means
 
 AN ACT to amend the tax law, in relation to creating a  local  food  and
   products sourcing tax credit

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 210-B of the tax law is amended  by  adding  a  new
 subdivision 59 to read as follows:
   59. LOCAL FOOD AND PRODUCTS SOURCING TAX CREDIT. 1. BUSINESSES SUBJECT
 TO  TAX LIABILITY UNDER ARTICLE NINE OR NINE-A OF THIS CHAPTER MAY CLAIM
 THE LOCAL FOODS AND  PRODUCTS  SOURCING  TAX  CREDIT  AGAINST  ANY  SUCH
 LIABILITY  AT  THE  CLOSE  OF  THE  TAX YEAR PROVIDED, HOWEVER, THAT THE
 UNUSED PORTION OF ANY TAX CREDIT CLAIMED SHALL NOT  BE  CARRIED  FORWARD
 AND APPLIED IN ANOTHER TAX YEAR.
   2. FOR THE PURPOSES OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE
 FOLLOWING MEANINGS:
   (A)  "LOCAL  PRODUCTS",  ARE  ANY PRODUCTS GROWN, RAISED, PRODUCED, OR
 MANUFACTURED BY A PRODUCER WITHIN THE STATE OF NEW YORK,  FROM  SEED  OR
 CONCEPTION THROUGH FINAL PRODUCT;
   (B)  "PRODUCER",  IS  AN  INDIVIDUAL  (WHETHER  ACTING INDIVIDUALLY OR
 THROUGH A COOPERATIVE, CORPORATION, PARTNERSHIP,  BUSINESS  ASSOCIATION,
 OR EDUCATIONAL INSTITUTION) WHO IS A FARMER, STUDENT FARMER, OR MANUFAC-
 TURER  OF FOODS OR GOODS IN NEW YORK STATE, IT SHALL NOT HOWEVER INCLUDE
 A WHOLESALER OR DISTRIBUTOR;
   (C) "NET SALES", ARE THE TOTAL SALES OF THE BUSINESS SUBJECT TO TAX.
   3. THE AMOUNT OF THE CREDIT  SHALL  BE  PROSCRIBED  ACCORDING  TO  THE
 FOLLOWING SCHEDULE:
   (A)  TWENTY  PERCENT OF NET SALES ARE ATTRIBUTED TO LOCAL PRODUCTS THE
 CREDIT SHALL BE ONE THOUSAND FIVE HUNDRED DOLLARS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00217-02-3
 A. 2054                             2
              

 
   (B) FORTY PERCENT OF NET SALES ARE ATTRIBUTED TO  LOCAL  PRODUCTS  THE
 CREDIT SHALL BE THREE THOUSAND DOLLARS.
   (C)  SIXTY  PERCENT  OF NET SALES ARE ATTRIBUTED TO LOCAL PRODUCTS THE
 CREDIT SHALL BE SIX THOUSAND DOLLARS.
   (D) EIGHTY PERCENT OF NET SALES ARE ATTRIBUTED TO LOCAL  PRODUCTS  THE
 CREDIT SHALL BE TWELVE THOUSAND DOLLARS.
   (E)  ONE HUNDRED PERCENT OF NET SALES ARE ATTRIBUTED TO LOCAL PRODUCTS
 THE CREDIT SHALL BE TWENTY-FIVE THOUSAND DOLLARS.
   4. (A) BUSINESSES CLAIMING THE LOCAL FOOD AND  PRODUCTS  SOURCING  TAX
 CREDIT  SHALL  SUBMIT  A COMPUTER-GENERATED REPORT WITH TAX RETURNS THAT
 CLAIM A TAX CREDIT.
   (B) SUCH REPORT SHALL INCLUDE THE NAME OF THE PRODUCER AND  THE  PHYS-
 ICAL PLACE OF THE BUSINESS WHERE THE PRODUCTS ARE PRODUCED.
   (C)  THE  AMOUNT  PAID  BY  GROCER OR BUSINESS TO THE PRODUCER AND THE
 AMOUNT OF UNITS PURCHASED.
   § 2. This act shall take effect immediately.