S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1961
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 14, 2025
                                ___________
 
 Introduced by M. of A. MAHER, E. BROWN, BRABENEC, McDONOUGH -- read once
   and referred to the Committee on Ways and Means
 
 AN ACT to amend the tax law, in relation to creating a certified transi-
   tional  tax  credit;  and  providing for the repeal of such provisions
   upon expiration thereof

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The tax law is amended by adding a new section 50 to read
 as follows:
   § 50. CERTIFIED TRANSITIONAL TAX CREDIT. (A) ALLOWANCE  OF  CREDIT.  A
 TAXPAYER,  WHO  IS SUBJECT TO TAX UNDER ARTICLE NINE, NINE-A, OR TWENTY-
 TWO OF THIS CHAPTER SHALL BE ALLOWED A REFUNDABLE  CREDIT  AGAINST  SUCH
 TAX  TO  BE COMPUTED AS PROVIDED IN THIS SECTION, FOR THE TAX IMPOSED BY
 THIS ARTICLE FOR TAXABLE YEARS AFTER JANUARY FIRST, TWO  THOUSAND  TWEN-
 TY-SIX.
   (B) VALUE OF CREDIT. THE AMOUNT OF SUCH CREDIT SHALL BE EQUAL TO TWEN-
 TY-FIVE  PERCENT  OF  THE  TOTAL  POUNDS OF GOODS SOLD UNDER AN ELIGIBLE
 PROGRAM UNDER SUBDIVISION (C) OF THIS SECTION, MULTIPLIED BY ONE-HALF.
   (C) ELIGIBLE PROGRAMS. TAXPAYERS THAT WISH TO CLAIM THIS  CREDIT  MUST
 DEMONSTRATE  THEIR  AGRICULTURAL  PRODUCTS  WERE SOLD DURING A PERIOD OF
 TRANSITION INTO USDA ORGANIC CERTIFICATION, UNDER THE WHOLE FOODS MARKET
 IP. L.P. "RESPONSIBLY GROWN" LABELLING PROGRAM, OR  UNDER  THE  QAI  AND
 HESCO, INC.  "CERTIFIED TRANSITIONAL" LABEL.
   (D)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SECTION FOR
 ANY TAXABLE YEAR SHALL 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 SECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH
 AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN  SUCH  TAXABLE  YEAR
 SHALL  BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
 ACCORDANCE WITH THE PROVISIONS OF SECTION  ONE  THOUSAND  EIGHTY-SIX  OF
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04816-01-5
 A. 1961                             2
              

 
 THIS  CHAPTER. EXCEPT AS PROVIDED IN SUBSECTION (C) OF SECTION ONE THOU-
 SAND EIGHTY-EIGHT OF THIS CHAPTER, NO INTEREST SHALL BE PAID THEREON.
   §  2.  The tax law is amended by adding a new section 187-s to read as
 follows:
   § 187-S. CERTIFIED TRANSITIONAL TAX CREDIT. (A) ALLOWANCE OF CREDIT. A
 TAXPAYER, WHO IS SUBJECT TO TAX UNDER THIS ARTICLE,  ARTICLE  NINE-A  OR
 TWENTY-TWO  OF THIS CHAPTER SHALL BE ALLOWED A REFUNDABLE CREDIT AGAINST
 SUCH TAX TO BE COMPUTED AS PROVIDED IN THIS SECTION, FOR THE TAX IMPOSED
 BY THIS ARTICLE FOR TAXABLE YEARS  AFTER  JANUARY  FIRST,  TWO  THOUSAND
 TWENTY-SIX.
   (B) VALUE OF CREDIT. THE AMOUNT OF SUCH CREDIT SHALL BE EQUAL TO TWEN-
 TY-FIVE  PERCENT  OF  THE  TOTAL  POUNDS OF GOODS SOLD UNDER AN ELIGIBLE
 PROGRAM UNDER SUBDIVISION (C) OF THIS SECTION, MULTIPLIED BY ONE-HALF.
   (C) ELIGIBLE PROGRAMS. TAXPAYERS THAT WISH TO CLAIM THIS  CREDIT  MUST
 DEMONSTRATE  THEIR  AGRICULTURAL  PRODUCTS  WERE SOLD DURING A PERIOD OF
 TRANSITION INTO USDA ORGANIC CERTIFICATION, UNDER THE WHOLE FOODS MARKET
 IP. L.P. "RESPONSIBLY GROWN" LABELLING PROGRAM, OR  UNDER  THE  QAI  AND
 HESCO, INC.  "CERTIFIED TRANSITIONAL" LABEL.
   (D)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SECTION FOR
 ANY TAXABLE YEAR SHALL 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 SECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH
 AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN  SUCH  TAXABLE  YEAR
 SHALL  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. EXCEPT AS PROVIDED IN SUBSECTION (C) OF SECTION ONE THOU-
 SAND EIGHTY-EIGHT OF THIS CHAPTER, NO INTEREST SHALL BE PAID THEREON.
   § 3. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 61 to read as follows:
   61.  CERTIFIED  TRANSITIONAL  TAX  CREDIT. (A) ALLOWANCE OF CREDIT.  A
 TAXPAYER, WHO IS SUBJECT TO TAX UNDER ARTICLE NINE, NINE-A,  OR  TWENTY-
 TWO  OF  THIS  CHAPTER SHALL BE ALLOWED A REFUNDABLE CREDIT AGAINST SUCH
 TAX TO BE COMPUTED AS PROVIDED IN THIS SUBDIVISION, FOR THE TAX  IMPOSED
 BY  THIS  ARTICLE  FOR  TAXABLE  YEARS AFTER JANUARY FIRST, TWO THOUSAND
 TWENTY-SIX.
   (B) VALUE OF CREDIT. THE AMOUNT OF SUCH CREDIT SHALL BE EQUAL TO TWEN-
 TY-FIVE PERCENT OF THE TOTAL POUNDS OF  GOODS  SOLD  UNDER  AN  ELIGIBLE
 PROGRAM UNDER PARAGRAPH (C) OF THIS SUBDIVISION, MULTIPLIED BY ONE-HALF.
   (C)  ELIGIBLE  PROGRAMS. TAXPAYERS THAT WISH TO CLAIM THIS CREDIT MUST
 DEMONSTRATE THEIR AGRICULTURAL PRODUCTS WERE SOLD  DURING  A  PERIOD  OF
 TRANSITION INTO USDA ORGANIC CERTIFICATION, UNDER THE WHOLE FOODS MARKET
 IP.  L.P.  "RESPONSIBLY  GROWN"  LABELLING PROGRAM, OR UNDER THE QAI AND
 HESCO, INC.  "CERTIFIED TRANSITIONAL" LABEL.
   (D) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
 FOR  ANY TAXABLE YEAR SHALL 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 SHALL 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. EXCEPT AS  PROVIDED  IN  SUBSECTION  (C)  OF
 SECTION  ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER, NO INTEREST SHALL BE
 PAID THEREON.
   § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
 of  the  tax  law  is  amended  by  adding a new clause (lii) to read as
 follows:
 A. 1961                             3
 
 (LII) CERTIFIED TRANSITIONAL         AMOUNT OF CREDIT UNDER
 TAX CREDIT UNDER SECTION             SUBDIVISION SIXTY-ONE OF
 FIFTY                                SECTION TWO HUNDRED TEN-B
   §  5.  This  act shall take effect January 1, 2026, and shall apply to
 taxable years beginning on or after such date, and shall expire  January
 1,  2032  when upon such date the provisions of this act shall be deemed
 repealed. Effective immediately, the addition, amendment  and/or  repeal
 of  any rule or regulation by the department of agriculture and markets,
 in conjunction with the department  of  taxation  and  finance  that  is
 necessary  for  the implementation of this act on its effective date are
 authorized to be made and completed on or before such effective date.