S T A T E O F N E W Y O R K
________________________________________________________________________
4854
2009-2010 Regular Sessions
I N A S S E M B L Y
February 6, 2009
___________
Introduced by M. of A. ALESSI -- Multi-Sponsored by -- M. of A. REILLY
-- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to the amount of the unified
credit applied to estates including a family owned farm for purposes
of the estate tax
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subsection (a) of section 951 of the tax law, as amended by
section 1 of part A of chapter 407 of the laws of 1999, is amended to
read as follows:
(a) Dates. For purposes of this article, any reference to the internal
revenue code means the United States Internal Revenue Code of 1986, with
all amendments enacted on or before July twenty-second, nineteen hundred
ninety-eight, and, unless specifically provided otherwise in this arti-
cle, any reference to December thirty-first, nineteen hundred seventy-
six or January first, nineteen hundred seventy-seven contained in the
provisions of such code which are applicable to the determination of the
tax imposed by this article shall be read as a reference to June thirti-
eth, nineteen hundred seventy-eight or July first, nineteen hundred
seventy-eight, respectively. Notwithstanding the foregoing, the unified
credit against the estate tax provided in section two thousand ten of
the internal revenue code shall, for purposes of this article, be the
amount allowed by such section under the applicable federal law in
effect on the decedent's date of death. Provided, however, the amount of
such credit allowable for purposes of this article shall not exceed the
amount allowable as if the federal unified credit did not exceed the tax
due under section two thousand one of the internal revenue code on a
federal taxable estate of one million dollars. NOTWITHSTANDING THE
FOREGOING, FOR ESTATES INCLUDING A FAMILY OWNED FARM ENGAGED IN THE
PRODUCTION OF FARM PRODUCTS AS DEFINED IN SECTION TWO OF THE AGRICULTURE
AND MARKETS LAW, AN ADDITIONAL CREDIT ALLOWABLE FOR PURPOSES OF THIS
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08058-01-9
A. 4854 2
ARTICLE SHALL BE EQUAL TO THE VALUE OF SUCH FARM PROVIDED SUCH FARM IS
INHERITED BY DESCENDANTS OF THE DECEDENT AND SUCH HEIRS CONTINUE THE
PRODUCTION OF FARM PRODUCTS ON SUCH FARM.
S 2. This act shall take effect immediately and shall apply to the
estates of decedents dying on or after January 1, 2010.