NY State Senate Bill 2023-S8804

Senate Bill S8804

2023-2024 Legislative Session

Expands a certain tax credit for farmers to include the cost of construction of housing for farm workers

download bill text pdf

Current Bill Status - In Senate Committee Budget And Revenue 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 13, 2024	referred to budget and revenue

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2023-S8804 (ACTIVE) - Details

See Assembly Version of this Bill:: A9651
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§210-B & 606, Tax L

2023-S8804 (ACTIVE) - Summary

Expands a certain tax credit for farmers to include the cost of construction of housing for farm workers.

2023-S8804 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8804

SPONSOR: TEDISCO
 
TITLE OF BILL:

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

 
PURPOSE OR GENERAL IDEA OF BILL:

To expand a certain tax credit for farmers to include the cost of
construction of housing for farm workers.

 
SUMMARY OF PROVISIONS:

§ 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 chapter 59 of the
laws of 2017, is amended to connote that "For purposes of the credit
allowed by clause (i) of this subparagraph, for a taxpayer that is an
eligible farmer as provided in paragraph one-a of this subsection, the
eligible cost of goods shall include the cost of standard construction

materials and labor used in 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 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 add the same provision.

 
JUSTIFICATION:

While Businesses that make investments in buildings, machinery, or
equipment receive the Investment Tax Credit (ITC), the tax code is
silent on this credit being applied to buildings, machinery, and equip-
ment dedicated to the building of residential housing for farm workers.

This measure provides clarity in the law and enables farms to utilize
this credit in the construction of residential housing for farm workers,
and simultaneously addresses the housing shortage that exists in New
York State.

 
PRIOR LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

Minimal.

 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date upon which it shall have become a law and shall apply to tax years
commencing on and after such effective date. Effective immediately, 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.

2023-S8804 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8804
 
                             I N  S E N A T E
 
                              March 13, 2024
                                ___________
 
 Introduced by Sens. TEDISCO, BORRELLO -- read twice and ordered printed,
   and when printed to be committed to the Committee on Budget and Reven-
   ue
 
 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-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD14888-01-4
 S. 8804                             2
 
 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
 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-
 S. 8804                             3
 
 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
 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
 S. 8804                             4
 
 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
 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
 S. 8804                             5

 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.

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