Senator Gallivan Reminds Farmers of New & Existing Tax Credits

Senator Patrick M. Gallivan (R-C-I, Elma) joins the New York State Tax Department and the New State Department of Agriculture and Markets in reminding farmers of money saving tax credits available to them.  The new and existing credits provide farmers with additional resources to re-invest in their business by improving or expanding operations.    

“These tax credits have been put in place to support farms big and small,” Gallivan said.  “I encourage all farmers throughout the state to learn more about these programs and to take advantage of the savings they offer.”

A variety of tax credits are available to New York farmers:

Beginning next year, farm employers will benefit from the newly introduced Farm Workforce Retention Credit. The credit is equal to a fixed-dollar amount for each eligible farm employee. The credit will be phased in to include annual increases through 2021. 

Historic barns that are reconstructed or rehabilitated and meet certain other requirements may qualify for a property tax exemption for 10 years. The exemption, which localities have the option to offer, is worth 100% of any increase in assessed value that results from the revitalization. Historic barn owners are encouraged to check with their local property assessor to ensure that the exemption is available in their community. 

Farmers might also be eligible for property tax relief with an agricultural assessment. In addition, property tax exemptions for agricultural buildings, temporary or permanent, can help reduce the cost of owning agricultural land.  Farm buildings include agricultural and horticultural buildings, historic barns, greenhouses, solar or wind energy systems, farm waste energy systems, and more.

Individuals and businesses might also be eligible for the conservation easement credit.  The land must be subject to a conservation easement that is held by a public or private conservation agency to qualify. The credit is worth 25% of the school district, county, and town real property taxes paid during the tax year. The maximum value of the credit is $5,000 each tax year.

The recently expanded Alcoholic Beverage Production Credit now covers the production of cider, wine, and liquor, in addition to beer.  This credit will help craft beverage manufacturers, including farm-based wineries, breweries, distilleries, and cideries, save money and expand their operations.

In addition to credits, farmers are eligible for a sales tax break when they purchase items such as machinery, equipment, and supplies used predominantly in farm production. 

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