NY State Senate Bill 2025-S3961

Current Bill Status - In Senate Committee Investigations And Government Operations 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
Jan 31, 2025	referred to investigations and government operations

co-Sponsors

2025-S3961 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §42-a, Tax L
Versions Introduced in 2023-2024 Legislative Session:: S9082

2025-S3961 (ACTIVE) - Summary

Extends eligibility for the farm employer overtime tax credit to certain professional employer organizations that are in a contractual relationship with an eligible farm employer.

2025-S3961 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S3961

SPONSOR: HINCHEY
 
TITLE OF BILL:

An act to amend the tax law, in relation to eligibility for the farm
employer overtime tax credit

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this legislation is to clarify the eligibility require-
ment for the farmworker overtime tax credit.

 
SUMMARY OF PROVISIONS:.

Section 1: Amends the tax law to clarify eligibility for the farm
employer overtime credit to Include farm employers who choose to
dispense wages through a professional employer organization.

Section 2: Clarifies eligibility for the overtime tax credit by amending
the definition of farm laborer.

 
JUSTIFICATION:

A strong agricultural industry is vital for New York. In order to help
farmers cover overtime expenses for farm workers, the farmworker over-
time credit was created to help manage additional expenses.

While this credit is greatly needed, the language of the law inadvert-
ently prohibits certain farms from being eligible. A farmer with multi-
ple operations, may establish a payroll or management entity to handle
payroll and other administrative functions for their operations under
one roof. These payroll entities contract with farm entities to adminis-
ter payroll and pay workers. Since the payroll entity is paying the
workers, instead of the farm operation, these farms are not eligible for
the farm employer overtime credit. This is due to the way the law was
initially drafted and passed. This bill will allow farms who use a
management or payroll entity, to receive the credit under their business
structure, as was the intention of the original law.

 
PRIOR LEGISLATIVE HISTORY:

2024: 39082/A9824- Veto memo 136

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

This legislation will have no fiscal implications as it was always
intended that all farms would be eligible to participate in the farm-
worker overtime tax credit program.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S3961 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3961
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 31, 2025
                                ___________
 
 Introduced  by  Sens.  HINCHEY, BORRELLO, WEBB -- read twice and ordered
   printed, and when printed to be committed to the Committee on Investi-
   gations and Government Operations
 
 AN ACT to amend the tax law, in relation to  eligibility  for  the  farm
   employer overtime tax credit

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision (a) of section 42-a of the tax law, as added by
 section 2 of subpart C of part B of chapter 59 of the laws of 2022,   is
 amended to read as follows:
   (a) Notwithstanding subdivision (f) of section forty-two of this arti-
 cle, a taxpayer that is a farm employer [or], an owner of a farm employ-
 er,  OR  A PROFESSIONAL EMPLOYER ORGANIZATION AS DEFINED IN SECTION NINE
 HUNDRED SIXTEEN OF THE LABOR LAW THAT IS IN A  CONTRACTUAL  RELATIONSHIP
 WITH  AN  ELIGIBLE  FARM EMPLOYER shall be eligible for a credit against
 the tax imposed under article nine-A  or  twenty-two  of  this  chapter,
 pursuant  to  the  provisions  referenced  in  subdivision  (i)  of this
 section.
   § 2. Subdivision (d) of section 42-a of  the  tax  law,  as  added  by
 section  2  of subpart C of part B of chapter 59 of the laws of 2022, is
 amended to read as follows:
   (d) An eligible farm employee is an individual  who  meets  the  defi-
 nition  of  a  "farm  laborer" under section two of the labor law who is
 employed by a farm employer OR A PROFESSIONAL EMPLOYER  ORGANIZATION  AS
 DEFINED  IN  SECTION  NINE HUNDRED SIXTEEN OF THE LABOR LAW THAT IS IN A
 CONTRACTUAL RELATIONSHIP WITH AN ELIGIBLE  FARM  EMPLOYER  in  New  York
 state, but excluding general executive officers of the farm employer.
   §  3.  This  act shall take effect on the ninetieth day after it shall
 have become a law.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08498-01-5

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Senate Bill S3961

Sponsored By

Current Bill Status - In Senate Committee Investigations And Government Operations Committee

co-Sponsors

2025-S3961 (ACTIVE) - Details

2025-S3961 (ACTIVE) - Summary

2025-S3961 (ACTIVE) - Sponsor Memo

2025-S3961 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S3961

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Sponsored By

Michelle Hinchey

Current Bill Status - In Senate Committee Investigations And Government Operations Committee

co-Sponsors

George M. Borrello

Lea Webb

2025-S3961 (ACTIVE) - Details

2025-S3961 (ACTIVE) - Summary

2025-S3961 (ACTIVE) - Sponsor Memo

2025-S3961 (ACTIVE) - Bill Text download pdf

Comments