S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2295
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 16, 2025
                                ___________
 
 Introduced by M. of A. HAWLEY -- read once and referred to the Committee
   on Ways and Means
 
 AN  ACT  to amend the tax law, in relation to the eligibility of farmers
   leasing land for the agricultural property tax credit
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Paragraphs (a) and (b) 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, are amended to read as follows:
   (a)  General.  In  the  case of a taxpayer which is an eligible farmer
 [or], an eligible farmer [who] WHICH has paid taxes pursuant to  a  land
 contract  OR  AN  ELIGIBLE  FARMER WHICH HAS A LEASEHOLD INTEREST OF NOT
 FEWER THAN FIVE CONTINUOUS YEARS AS A LESSEE OF  QUALIFIED  AGRICULTURAL
 PROPERTY,  there  shall  be  allowed  a  credit for the allowable school
 district property taxes. The term "allowable  school  district  property
 taxes"  means the school district property taxes paid during the taxable
 year on qualified agricultural property, subject to the acreage  limita-
 tion  provided in paragraph (e) of this subdivision and the income limi-
 tation provided in paragraph (f) of this subdivision.
   (b) Eligible farmer.  For  purposes  of  this  subdivision,  the  term
 "eligible farmer" means a taxpayer whose federal gross income from farm-
 ing  for the taxable year is at least two-thirds of excess federal gross
 income. The term "eligible farmer" also  includes  a  corporation  other
 than  the  taxpayer  of record for qualified agricultural land which has
 paid the school district property taxes on such  land  OR  WHICH  HAS  A
 LEASEHOLD  INTEREST  OF NOT FEWER THAN FIVE CONTINUOUS YEARS AS A LESSEE
 OF SUCH LAND pursuant to a contract for  the  future  purchase  of  such
 land;  provided  that  such  corporation has a federal gross income from
 farming for the taxable year which is  at  least  two-thirds  of  excess
 federal  gross  income;  and  provided further that, in determining such
 income eligibility, a taxpayer may, for any taxable year, use the  aver-
 age  of such federal gross income from farming for that taxable year and
 such income for the two consecutive taxable years immediately  preceding
 such  taxable  year.    Excess  federal gross income means the amount of
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01772-01-5
 A. 2295                             2
 
 federal gross income from all sources for the taxable year in excess  of
 thirty  thousand  dollars.  For the purposes of this paragraph, payments
 from the  state's  farmland  protection  program,  administered  by  the
 department  of  agriculture  and  markets,  shall be included as federal
 gross income from farming for otherwise eligible farmers.
   § 2. Paragraphs 1 and 2 of subsection (n) of section 606  of  the  tax
 law, paragraph 1 as amended by chapter 315 of the laws of 1998 and para-
 graph  2  as  amended by chapter 297 of the laws of 2010, are amended to
 read as follows:
   (1) General. In the case of a taxpayer who is an eligible farmer [or],
 an eligible farmer who has paid taxes pursuant to a land contract, OR AN
 ELIGIBLE FARMER WHO HAS A LEASEHOLD INTEREST  OF  NOT  FEWER  THAN  FIVE
 CONTINUOUS  YEARS  AS A LESSEE OF QUALIFIED AGRICULTURAL PROPERTY, there
 shall be allowed a credit for the  allowable  school  district  property
 taxes.  The  term  "allowable  school district property taxes" means the
 school district property taxes paid during the taxable year on qualified
 agricultural property, subject to the  acreage  limitation  provided  in
 paragraph  five of this subsection and the income limitation provided in
 paragraph six of this subsection. Such credit shall be  allowed  against
 the  taxes  imposed  by this article for the taxable year reduced by the
 credits permitted by this article. If the credit exceeds the tax  as  so
 reduced,  the  taxpayer  may  receive, and the comptroller, subject to a
 certificate of the commissioner, shall pay as  an  overpayment,  without
 interest, the amount of such excess.
   (2) Eligible farmer. For purposes of this subsection, the term "eligi-
 ble farmer" means a taxpayer whose federal gross income from farming for
 the  taxable year is at least two-thirds of excess federal gross income.
 The term "eligible farmer" also includes an individual  other  than  the
 taxpayer  of  record  for  qualified  agricultural land who has paid the
 school district property taxes on such land pursuant to a  contract  for
 the  future purchase of such land OR WHO HAS A LEASEHOLD INTEREST OF NOT
 FEWER THAN FIVE CONTINUOUS YEARS AS A LESSEE OF SUCH LAND; provided that
 such individual has a federal gross income from farming for the  taxable
 year  which  is  at least two-thirds of excess federal gross income; and
 provided further that, in determining such income eligibility, a taxpay-
 er may, for any taxable year, use the  average  of  such  federal  gross
 income  from  farming  for that taxable year and such income for the two
 consecutive taxable  years  immediately  preceding  such  taxable  year.
 Excess  federal  gross  income  means the amount of federal gross income
 from all sources for the taxable year reduced by the sum (not to  exceed
 thirty thousand dollars) of those items included in federal gross income
 which  consist  of  (i)  earned income, (ii) pension payments, including
 social security  payments,  (iii)  interest,  and  (iv)  dividends.  For
 purposes  of this paragraph, the term "earned income" [shall mean] MEANS
 wages, salaries, tips and other employee compensation, and  those  items
 of  gross income which are includible in the computation of net earnings
 from self-employment. For the purposes of this paragraph, payments  from
 the  state's farmland protection program, administered by the department
 of agriculture and markets, shall be included as  federal  gross  income
 from farming for otherwise eligible farmers.
   § 3. This act shall take effect immediately and shall apply to taxable
 years commencing on or after January 1, 2027.  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 date.