S T A T E O F N E W Y O R K
________________________________________________________________________
9651
I N A S S E M B L Y
March 27, 2024
___________
Introduced by M. of A. BUTTENSCHON -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to expanding a certain tax
credit for farmers to include the cost of construction housing for
farm workers
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subparagraph (i) of paragraph (b) of subdivision 1 of
section 210-B of the tax law, as amended by section 2 of part P of chap-
ter 59 of the laws of 2017, is amended to read as follows:
(i) A credit shall be allowed under this subdivision with respect to
tangible personal property and other tangible property, including build-
ings and structural components of buildings, which are: depreciable
pursuant to section one hundred sixty-seven of the internal revenue
code, have a useful life of four years or more, are acquired by purchase
as defined in section one hundred seventy-nine (d) of the internal
revenue code, have a situs in this state and are (A) principally used by
the taxpayer in the production of goods by manufacturing, processing,
assembling, refining, mining, extracting, farming, agriculture, horti-
culture, floriculture, viticulture or commercial fishing, (B) industrial
waste treatment facilities or air pollution control facilities, used in
the taxpayer's trade or business, (C) research and development property,
or (D) principally used in the ordinary course of the taxpayer's trade
or business as a broker or dealer in connection with the purchase or
sale (which shall include but not be limited to the issuance, entering
into, assumption, offset, assignment, termination, or transfer) of
stocks, bonds or other securities as defined in section four hundred
seventy-five (c)(2) of the Internal Revenue Code, or of commodities as
defined in section four hundred seventy-five (e) of the Internal Revenue
Code, (E) principally used in the ordinary course of the taxpayer's
trade or business of providing investment advisory services for a regu-
lated investment company as defined in section eight hundred fifty-one
of the Internal Revenue Code, or lending, loan arrangement or loan orig-
ination services to customers in connection with the purchase or sale
(which shall include but not be limited to the issuance, entering into,
assumption, offset, assignment, termination, or transfer) of securities
as defined in section four hundred seventy-five (c)(2) of the Internal
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14888-01-4
A. 9651 2
Revenue Code, (F) principally used in the ordinary course of the taxpay-
er's business as an exchange registered as a national securities
exchange within the meaning of sections 3(a)(1) and 6(a) of the Securi-
ties Exchange Act of 1934 or a board of trade as defined in subparagraph
one of paragraph (a) of section fourteen hundred ten of the not-for-pro-
fit corporation law or as an entity that is wholly owned by one or more
such national securities exchanges or boards of trade and that provides
automation or technical services thereto, or (G) principally used as a
qualified film production facility including qualified film production
facilities having a situs in an empire zone designated as such pursuant
to article eighteen-B of the general municipal law, where the taxpayer
is providing three or more services to any qualified film production
company using the facility, including such services as a studio lighting
grid, lighting and grip equipment, multi-line phone service, broadband
information technology access, industrial scale electrical capacity,
food services, security services, and heating, ventilation and air
conditioning. For purposes of clauses (D), (E) and (F) of this subpara-
graph, property purchased by a taxpayer affiliated with a regulated
broker, dealer, registered investment advisor, national securities
exchange or board of trade, is allowed a credit under this subdivision
if the property is used by its affiliated regulated broker, dealer,
registered investment advisor, national securities exchange or board of
trade in accordance with this subdivision. For purposes of determining
if the property is principally used in qualifying uses, the uses by the
taxpayer described in clauses (D) and (E) of this subparagraph may be
aggregated. In addition, the uses by the taxpayer, its affiliated regu-
lated broker, dealer and registered investment advisor under either or
both of those clauses may be aggregated. Provided, however, a taxpayer
shall not be allowed the credit provided by clauses (D), (E) and (F) of
this subparagraph unless the property is first placed in service before
October first, two thousand fifteen and (i) eighty percent or more of
the employees performing the administrative and support functions
resulting from or related to the qualifying uses of such equipment are
located in this state or (ii) the average number of employees that
perform the administrative and support functions resulting from or
related to the qualifying uses of such equipment and are located in this
state during the taxable year for which the credit is claimed is equal
to or greater than ninety-five percent of the average number of employ-
ees that perform these functions and are located in this state during
the thirty-six months immediately preceding the year for which the cred-
it is claimed, or (iii) the number of employees located in this state
during the taxable year for which the credit is claimed is equal to or
greater than ninety percent of the number of employees located in this
state on December thirty-first, nineteen hundred ninety-eight or, if the
taxpayer was not a calendar year taxpayer in nineteen hundred ninety-
eight, the last day of its first taxable year ending after December
thirty-first, nineteen hundred ninety-eight. If the taxpayer becomes
subject to tax in this state after the taxable year beginning in nine-
teen hundred ninety-eight, then the taxpayer is not required to satisfy
the employment test provided in the preceding sentence of this subpara-
graph for its first taxable year. For purposes of clause (iii) of this
subparagraph the employment test will be based on the number of employ-
ees located in this state on the last day of the first taxable year the
taxpayer is subject to tax in this state. If the uses of the property
must be aggregated to determine whether the property is principally used
in qualifying uses, then either each affiliate using the property must
A. 9651 3
satisfy this employment test or this employment test must be satisfied
through the aggregation of the employees of the taxpayer, its affiliated
regulated broker, dealer, and registered investment adviser using the
property. For purposes of clause (A) of this subparagraph, tangible
personal property and other tangible property shall not include property
principally used by the taxpayer in the production or distribution of
electricity, natural gas after extraction from wells, steam, or water
delivered through pipes and mains. FOR PURPOSES OF THE CREDIT ALLOWED BY
CLAUSE (A) OF THIS SUBPARAGRAPH, FOR A TAXPAYER THAT IS AN ELIGIBLE
FARMER AS PROVIDED IN PARAGRAPH (A-1) OF THIS SUBDIVISION, THE ELIGIBLE
COST OF GOODS SHALL INCLUDE THE COST OF STANDARD CONSTRUCTION MATERIALS
AND LABOR USED IN THE CONSTRUCTION OF RESIDENTIAL HOUSING OCCUPIED FARM
WORKERS EMPLOYED BY THE TAXPAYER TO PROVIDE LABOR IN THE PRODUCTION OF
THE QUALIFYING PRODUCT PRODUCED BY THE TAXPAYER, PROVIDED SUCH COSTS
SATISFY THE OTHER REQUIREMENTS OF THIS SUBPARAGRAPH.
§ 2. Subparagraph (A) of paragraph 2 of subsection (a) of section 606
of the tax law, as amended by section 3 of part P of chapter 59 of the
laws of 2017, is amended to read as follows:
(A) A credit shall be allowed under this subsection with respect to
tangible personal property and other tangible property, including build-
ings and structural components of buildings, which are: depreciable
pursuant to section one hundred sixty-seven of the internal revenue
code, have a useful life of four years or more, are acquired by purchase
as defined in section one hundred seventy-nine (d) of the internal
revenue code, have a situs in this state and are (i) principally used by
the taxpayer in the production of goods by manufacturing, processing,
assembling, refining, mining, extracting, farming, agriculture, horti-
culture, floriculture, viticulture or commercial fishing, (ii) indus-
trial waste treatment facilities or air pollution control facilities,
used in the taxpayer's trade or business, (iii) research and development
property, (iv) principally used in the ordinary course of the taxpayer's
trade or business as a broker or dealer in connection with the purchase
or sale (which shall include but not be limited to the issuance, enter-
ing into, assumption, offset, assignment, termination, or transfer) of
stocks, bonds or other securities as defined in section four hundred
seventy-five (c)(2) of the Internal Revenue Code, or of commodities as
defined in section 475(e) of the Internal Revenue Code, (v) principally
used in the ordinary course of the taxpayer's trade or business of
providing investment advisory services for a regulated investment compa-
ny as defined in section eight hundred fifty-one of the Internal Revenue
Code, or lending, loan arrangement or loan origination services to
customers in connection with the purchase or sale (which shall include
but not be limited to the issuance, entering into, assumption, offset,
assignment, termination, or transfer) of securities as defined in
section four hundred seventy-five (c)(2) of the Internal Revenue Code,
or (vi) principally used as a qualified film production facility includ-
ing qualified film production facilities having a situs in an empire
zone designated as such pursuant to article eighteen-B of the general
municipal law, where the taxpayer is providing three or more services to
any qualified film production company using the facility, including such
services as a studio lighting grid, lighting and grip equipment, multi-
line phone service, broadband information technology access, industrial
scale electrical capacity, food services, security services, and heat-
ing, ventilation and air conditioning. For purposes of clauses (iv) and
(v) of this subparagraph, property purchased by a taxpayer affiliated
with a regulated broker, dealer, or registered investment adviser is
A. 9651 4
allowed a credit under this subsection if the property is used by its
affiliated regulated broker, dealer or registered investment adviser in
accordance with this subsection. For purposes of determining if the
property is principally used in qualifying uses, the uses by the taxpay-
er described in clauses (iv) and (v) of this subparagraph may be aggre-
gated. In addition, the uses by the taxpayer, its affiliated regulated
broker, dealer and registered investment adviser under either or both of
those clauses may be aggregated. Provided, however, a taxpayer shall not
be allowed the credit provided by clauses (iv) and (v) of this subpara-
graph unless (I) eighty percent or more of the employees performing the
administrative and support functions resulting from or related to the
qualifying uses of such equipment are located in this state, or (II) the
average number of employees that perform the administrative and support
functions resulting from or related to the qualifying uses of such
equipment and are located in this state during the taxable year for
which the credit is claimed is equal to or greater than ninety-five
percent of the average number of employees that perform these functions
and are located in this state during the thirty-six months immediately
preceding the year for which the credit is claimed, or (III) the number
of employees located in this state during the taxable year for which the
credit is claimed is equal to or greater than ninety percent of the
number of employees located in this state on December thirty-first,
nineteen hundred ninety-eight or, if the taxpayer was not a calendar
year taxpayer in nineteen hundred ninety-eight, the last day of its
first taxable year ending after December thirty-first, nineteen hundred
ninety-eight. If the taxpayer becomes subject to tax in this state after
the taxable year beginning in nineteen hundred ninety-eight, then the
taxpayer is not required to satisfy the employment test provided in the
preceding sentence of this subparagraph for its first taxable year. For
the purposes of clause (III) of this subparagraph the employment test
will be based on the number of employees located in this state on the
last day of the first taxable year the taxpayer is subject to tax in
this state. If the uses of the property must be aggregated to determine
whether the property is principally used in qualifying uses, then either
each affiliate using the property must satisfy this employment test or
this employment test must be satisfied through the aggregation of the
employees of the taxpayer, its affiliated regulated broker, dealer, and
registered investment adviser using the property. For purposes of clause
(i) of this subparagraph, tangible personal property and other tangible
property shall not include property principally used by the taxpayer in
the production or distribution of electricity, natural gas after
extraction from wells, steam, or water delivered through pipes and
mains. FOR PURPOSES OF THE CREDIT ALLOWED BY CLAUSE (I) OF THIS SUBPARA-
GRAPH, FOR A TAXPAYER THAT IS AN ELIGIBLE FARMER AS PROVIDED IN PARA-
GRAPH ONE-A OF THIS SUBSECTION, THE ELIGIBLE COST OF GOODS SHALL INCLUDE
THE COST OF STANDARD CONSTRUCTION MATERIALS AND LABOR USED IN THE
CONSTRUCTION OF RESIDENTIAL HOUSING OCCUPIED FARM WORKERS EMPLOYED BY
THE TAXPAYER TO PROVIDE LABOR IN THE PRODUCTION OF THE QUALIFYING PROD-
UCT PRODUCED BY THE TAXPAYER, PROVIDED SUCH COSTS SATISFY THE OTHER
REQUIREMENTS OF THIS SUBPARAGRAPH.
§ 3. This act shall take effect on the first of January next succeed-
ing the date upon which it shall have become a law and shall apply to
tax years commencing on and after such effective date. Effective imme-
diately, the addition, amendment and/or repeal of any rule or regulation
necessary for the implementation of this act on its effective date are
authorized to be made and completed on or before such effective date.