NY State Senate Bill 2023-S1142

Senate Bill S1142

2023-2024 Legislative Session

Provides that excess investment tax credit amounts may be refundable to operators of a farm operation

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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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to budget and revenue
Jan 10, 2023	referred to budget and revenue

co-Sponsors

2023-S1142 (ACTIVE) - Details

See Assembly Version of this Bill:: A797
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§210-B & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S2431, A1088
2011-2012: S784, A386
2013-2014: S2083, A1620
2015-2016: S3065, S4740, A1854
2017-2018: S1446, S1738, A884
2019-2020: S922, S4696, A3528
2021-2022: S3639, A68

2023-S1142 (ACTIVE) - Summary

Provides that excess investment tax credit amounts may be refundable to operators of a farm operation.

2023-S1142 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1142

SPONSOR: ORTT
 
TITLE OF BILL:

An act to amend the tax law, in relation to providing that excess
investment tax credit amounts may be refundable to operators of a farm
operation

 
PURPOSE:

To allow farmers to receive the investment tax credit as a fully refund-
able credit.

 
SUMMARY OF PROVISIONS:

Section 1: Amends subdivision 1 of section 210-B of the tax law to
provide that excess investment tax credit amounts may be refundable to
operators of a farm operation. Section 2: Amends subsection (a) of
section 606 of the tax law to provide that excess investment tax credit
amounts may be refundable to operators of a farm operation.

Section 3: Provides an immediate effective date and deems that it shall
be deemed to have been in full force and effect on and after January 1,
2019.

 
JUSTIFICATION:

New York is home to some 38,000 farms encompassing roughly 7.8 million
acres of cropland, pasture and woodlands. These farms produce nearly
$3.1 billion annually in direct economic output and probably double or
triple that in indirect economic benefits with the farming and food
industry employing over 425,000 people. Given the enormous economic
impact that agriculture has on the economy of this State, we must do
everything we can to ensure that our farm operations survive.

When farmers make long-term investments in their operations they are
eligible for the investment tax credit (ITC). However, unlike the agri-
cultural school tax credit, the investment tax credit is not refundable
and, thereby, is of no benefit to farmers who have no taxable income. To
remedy this and to assist our farmers with continuing to make investment
in their agri-enterprises, this bill would allow farmers to receive the
ITC as a fully refundable credit, similar to the school tax credit. By
making this small change, our farmers would receive a valuable benefit
that would enable them to continue to update, modernize and invest in
their farms.

 
PRIOR LEGISLATIVE HISTORY:

2021-2022: S . 3639 Referred to Budget and Revenue

2019-2020: S .4696 Referred to Budget and Revenue

2018: S.1738 -A Referred to Investigations & Government Operations

2017: S.1738 Referred to Investigations & Government Operations

2016: S.3065 -A Referred to Investigations & Government Operations

2015: S.3065 Referred to Investigations & Government Operations

2013,2014: S .2083A Referred to Investigations & Government Operations

2011,2012: S .784/A.386 Reported to Investigations & Operations Commit-
tee

2009,2010: S .2431A/A.1088A Reported to Investigations & Operations
Committee

2007,2008: S .2036A/A.1233B Passed Senate

2006: S.7164 /A.9279 Referred to Investigations & Operations Committee

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
Effective immediately, and shall be deemed to have been in full force
and effect on and after January 1, 2023.

2023-S1142 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1142
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 10, 2023
                                ___________
 
 Introduced  by  Sen.  ORTT  --  read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax  law,  in  relation  to  providing  that  excess
   investment tax credit amounts may be refundable to operators of a farm
   operation

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 210-B of the tax law is amended by
 adding a new paragraph (e-1) to read as follows:
   (E-1) NOTWITHSTANDING ANY OTHER PROVISION  OF  THIS  SUBDIVISION,  FOR
 TAXABLE  YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-
 THREE, IF THE CREDIT ALLOWED UNDER THIS SUBDIVISION IS GREATER THAN  THE
 TAX  DUE  IN  ANY  TAXABLE  YEAR  FOR A TAXPAYER WHOSE PRIMARY SOURCE OF
 INCOME IS DERIVED FROM OPERATING A FARM  OPERATION,  SUCH  TAXPAYER  MAY
 ELECT  TO  TREAT THE AMOUNT BY WHICH SUCH CREDIT EXCEEDS SUCH TAX DUE AS
 AN OVERPAYMENT OF TAX TO BE REFUNDED IN ACCORDANCE WITH  THE  PROVISIONS
 OF  SECTION TEN HUNDRED EIGHTY-SIX OF THIS CHAPTER. FOR PURPOSES OF THIS
 PARAGRAPH, THE TERM "FARM OPERATION" SHALL HAVE THE SAME MEANING AS SUCH
 TERM IS DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE  HUNDRED  ONE  OF
 THE AGRICULTURE AND MARKETS LAW.
   § 2. Subsection (a) of section 606 of the tax law is amended by adding
 a new paragraph 5-a to read as follows:
   (5-A)  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF THIS SUBSECTION, FOR
 TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND  TWENTY-
 THREE,  IF  THE CREDIT ALLOWED UNDER THIS SUBSECTION IS GREATER THAN THE
 TAX DUE IN ANY TAXABLE YEAR FOR  A  TAXPAYER  WHOSE  PRIMARY  SOURCE  OF
 INCOME  IS  DERIVED  FROM  OPERATING A FARM OPERATION, SUCH TAXPAYER MAY
 ELECT TO TREAT THE AMOUNT BY WHICH SUCH CREDIT EXCEEDS SUCH TAX  DUE  AS
 AN  OVERPAYMENT  OF TAX TO BE REFUNDED IN ACCORDANCE WITH THE PROVISIONS
 OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE. FOR PURPOSES OF  THIS
 PARAGRAPH, THE TERM "FARM OPERATION" SHALL HAVE THE SAME MEANING AS SUCH
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03019-01-3

 S. 1142                             2
 
 TERM  IS  DEFINED  IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED ONE OF
 THE AGRICULTURE AND MARKETS LAW.
   §  3.  This  act shall take effect immediately, and shall be deemed to
 have been in full force and effect on and after January 1, 2023.

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Senate Bill S1142

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Sponsored By

Robert G. Ortt