S T A T E O F N E W Y O R K
________________________________________________________________________
703
2009-2010 Regular Sessions
I N S E N A T E
January 13, 2009
___________
Introduced by Sens. LARKIN, YOUNG, ALESI, BONACIC, LEIBELL, MAZIARZ,
NOZZOLIO, ROBACH, SALAND, VOLKER, WINNER -- read twice and ordered
printed, and when printed to be committed to the Committee on Agricul-
ture
AN ACT to amend the agriculture and markets law, in relation to the
powers and duties of the commissioner of agriculture and markets
pertaining to the direct marketing of grapes and other fruit products,
and the profitability of farming and the preservation of viable farm
land; and to amend the tax law, in relation to corporate franchise tax
and personal income tax credits for the purchase of certain vineyard
grape plants and fruit processing capital equipment
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 3 of the agriculture and markets law, as amended by
chapter 651 of the laws of 1946, is amended to read as follows:
S 3. Declaration of policy and purposes. The agricultural industry is
basic to the life of our state. It vitally concerns and affects the
welfare, health, economic well-being and productive and industrial capa-
bilities of all our people. It is the policy and duty of the state to
promote, foster, and encourage the agricultural industry, with proper
standards of living for those engaged therein; to design and establish
long-range programs for its stabilization and profitable operation; to
increase through education, research, regulation, and scientific means,
the quantity, quality, and efficiency of its production; to improve its
marketing system; to encourage adequate and skilled assistance for agri-
cultural enterprises; to maintain at fair prices uncontrolled by specu-
lation the instrumentalities and products of agriculture; to remove
unnecessary or unfair costs and obstacles in the [transporation] TRANS-
PORTATION, storage, processing, distribution, marketing, and sale of
agricultural products; to prevent frauds in the traffic therein; to
promote an expanded demand for the state's agricultural products and the
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05396-01-9
S. 703 2
intelligent uses thereof by consumers as pure and wholesome food; to
protect the public health and to eliminate the evils of under-nourish-
ment; to encourage the selection and consumption of food according to
sound dietary and nutritional principles; and to make our people
conscious of the bond of mutual self-interest between our urban and our
rural populations.
AT THE DAWN OF THE TWENTY-FIRST CENTURY, THE LEGISLATURE FINDS THAT
EVER-INCREASING ECONOMIC CHANGES AND PRESSURES ON FARMING HAVE INTENSI-
FIED THE DIFFICULTIES FACED BY THOSE ENGAGED IN AGRICULTURAL PRODUCTION
FOR THEIR LIVELIHOODS, MANY OF WHOM ARE THE DESCENDANTS OF GENERATIONS
OF FARMERS. THESE POWERFUL FORCES, NATIONWIDE AND GLOBAL, HAVE
INCREASED THE URGENCY OF THE PROBLEMS AND THE NEED TO IMPLEMENT THE
PROVISIONS OF THE FOREGOING PARAGRAPH OF THIS SECTION. THUS, THE LEGIS-
LATURE CONTINUES TO ENACT MEASURES DELIBERATELY INTENDED TO FULFILL THE
GOALS OF SAID PARAGRAPH. THE NEED HAS NEVER BEEN GREATER.
Accordingly, all laws enacted concerning the agricultural industry and
its allied subjects, whether included in this chapter or not, are to be
deemed an exercise of the police power of the state and a discharge of
its obligations for the promotion of the general welfare through state-
wide laws and regulations, local initiative and government, cooperative
action between groups and localities, home-rule measures, individual
enterprise, civic consciousness, and appropriate coordination with the
federal government and as between educational research institutions
within the state.
Such laws and all governmental measures adopted pursuant thereto
should receive a liberal interpretation and application in furtherance
of the aforesaid policy and purposes.
S 2. Subdivision 1 of section 16 of the agriculture and markets law,
as amended by chapter 639 of the laws of 2004, is amended to read as
follows:
1. Execute and carry into effect the laws of the state and the rules
of the department, relative to agriculture, horticulture, farm, fruit
AND FRUIT PRODUCTS, and dairy products, aquaculture, and the production,
processing, transportation, storage, marketing and distributing of food;
enforce and carry into effect the provisions of the laws of the state
relative to weights and measures.
S 3. Subdivision 2 of section 16 of the agriculture and markets law,
such section as renumbered by chapter 16 of the laws of 1935, is amended
to read as follows:
2. Aid in the promotion and development of the agricultural resources
of the state and the improvement of the conditions of rural life; the
improvement of the fertility and productiveness of farm AND ORCHARD
lands and the restoration to fertility and productiveness of unoccupied
and unproductive land; the settlement of farms and the supply of farm
labor; the stocking of farms with meat-producing and dairy animals and
promoting the production of cereals, fruits and vegetables, AND THE
PROCESSING THEREOF, and co-operate with county farm bureaus[,] and with
agricultural, dairying and horticultural associations or corporations
and other agencies organized for any or all of such purposes.
S 4. Subdivision 2-b of section 16 of the agriculture and markets law,
as amended by chapter 639 of the laws of 2004, is amended to read as
follows:
2-b. Aid in the promotion, marketing, and sale of New York state
labelled wines, grapes [and], grape products, OTHER FRUITS AND ALL OTHER
FRUIT PRODUCTS in cooperation with the department of economic develop-
ment both within and outside the state and to provide promotion and
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marketing advisement to wineries, farm wineries, micro-wineries, grape
and other fruit growers and processors, and related trade organizations
located within this state.
S 5. Subdivisions 5, 11 and 13 of section 283 of the agriculture and
markets law, as added by chapter 834 of the laws of 1981, are amended to
read as follows:
5. Provide assistance to consumer, COMMUNITY or non-profit organiza-
tions seeking to purchase or facilitate the purchase of farm products
directly from producers.
11. Establish a statewide advisory council which shall provide infor-
mation to and advise the commissioner, as prescribed by him OR HER, on
policy, planning and programs.
13. Undertake any other activities which he OR SHE deems necessary to
accomplish the purposes of this article.
S 6. Subdivision 9 of section 284 of the agriculture and markets law,
as amended by chapter 639 of the laws of 2004, is amended to read as
follows:
9. Establish the Hudson valley agricultural center to serve as a
marketing, promotional, informational and cultural center for the Hudson
river valley agricultural region and greenway and to promote the
production of fruits [(] AND FRUIT PRODUCTS, including juices, jellies,
[and] preserves [made therefrom)], wine, GRAPPA AND cider, vegetables[,]
and other agricultural products.
S 7. The opening paragraph and paragraph a of subdivision 3 of section
285 of the agriculture and markets law, as added by chapter 834 of the
laws of 1981, are amended to read as follows:
The duties and responsibilities of the statewide advisory council
shall be prescribed by the commissioner [and he], WHO may specifically
delegate to the council any or all of the following duties and responsi-
bilities:
a. [Assisting] ASSIST the commissioner in the collection and assembly
of information and data necessary for the proper administration of this
article.
S 8. Subdivision 2 of section 285-b of the agriculture and markets
law, as amended by chapter 571 of the laws of 2008, is amended to read
as follows:
2. The advisory council, in consultation with the Hudson river valley
greenway communities council, the upstate New York tourism council, and
the downstate New York tourism council, may recommend programs and
promotional activities designed to preserve and enhance Hudson valley
region tourism, INCREASE THE PROFITABILITY OF FARMING and PRESERVE
VIABLE agricultural open [space] SPACES, address issues affecting the
viability of agriculture, including real property tax policies and
municipal land use issues AND POLICIES, and promote greater agricultural
marketing and promotional opportunities for the region's agricultural
producers to the department.
S 9. Section 210 of the tax law is amended by adding two new subdivi-
sions 41 and 42 to read as follows:
41. VINEYARD GRAPE PLANTS CREDIT. (A) GENERAL. A TAXPAYER SHALL BE
ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE
TAX IMPOSED BY THIS ARTICLE FOR VINEYARD GRAPE PLANTS PLACED IN SERVICE
DURING THE TAXABLE YEAR.
(B) VINEYARD GRAPE PLANTS. THE CREDIT UNDER THIS SUBDIVISION FOR VINE-
YARD GRAPE PLANTS SHALL EQUAL SEVENTY-FIVE PERCENT OF THE COST OF ANY
SUCH PLANTS WHICH ARE PLANTED WITHIN "LAND USED IN AGRICULTURAL
PRODUCTION", AS DEFINED IN SUBDIVISION FOUR OF SECTION THREE HUNDRED ONE
S. 703 4
OF THE AGRICULTURE AND MARKETS LAW, WHETHER OR NOT SUCH LAND IS WITHIN
AN AGRICULTURAL DISTRICT WITHIN THE MEANING OF ARTICLE TWENTY-FIVE-AA OF
THE AGRICULTURE AND MARKETS LAW.
(C) DEFINITION. THE TERM "VINEYARD GRAPE PLANTS" MEANS NEW GRAPE PLANT
MATERIAL USED TO PLANT NEW VINEYARDS OR REPLANT PRESENTLY OR PREVIOUSLY
EXISTING OLD VINEYARDS.
(D) CARRYOVERS. IN NO EVENT SHALL THE CREDIT UNDER THIS SUBDIVISION BE
ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN THE
HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVI-
SION ONE OF THIS SECTION. PROVIDED, HOWEVER, THAT IF THE AMOUNT OF CRED-
IT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX
TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR
MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED
FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
(E) CREDIT RECAPTURE. (I) IF, AT ANY TIME BEFORE THE END OF ITS RECOV-
ERY PERIOD, VINEYARD GRAPE PLANTS CEASE TO BE QUALIFIED, A RECAPTURE
AMOUNT MUST BE ADDED BACK IN THE YEAR IN WHICH SUCH CESSATION OCCURS.
(II) VINEYARD GRAPE PLANTS CEASE TO BE QUALIFIED IF:
(A) SUCH VINEYARD IS NOT ACTUALLY USED FOR CROP PRODUCTION FOR THE TEN
YEARS NEXT SUCCEEDING THE PLANTING THEREOF; PROVIDED THAT CROP
PRODUCTION SHALL NOT BE DEEMED TO REQUIRE HARVESTING; OR
(B) THE TAXPAYER RECEIVING THE CREDIT UNDER THIS SUBDIVISION SELLS OR
DISPOSES OF THE PROPERTY AND KNOWS OR HAS REASON TO KNOW THAT THE PROP-
ERTY WILL BE USED IN A MANNER DESCRIBED IN CLAUSE (A) OF THIS SUBPARA-
GRAPH.
(III) RECAPTURE AMOUNT. THE RECAPTURE AMOUNT IS EQUAL TO THE CREDIT
ALLOWABLE UNDER THIS SUBDIVISION MULTIPLIED BY A FRACTION, THE NUMERATOR
OF WHICH IS THE TOTAL RECOVERY PERIOD FOR THE PROPERTY MINUS THE NUMBER
OF RECOVERY YEARS PRIOR TO, BUT NOT INCLUDING, THE RECAPTURE YEAR, AND
THE DENOMINATOR OF WHICH IS THE TOTAL RECOVERY PERIOD.
(F) AFFILIATES. (I) IF A CREDIT UNDER THIS SUBDIVISION IS ALLOWED TO A
TAXPAYER WITH RESPECT TO A TAXABLE YEAR, THE ACTION TAKEN BY SUCH
TAXPAYER WHICH RESULTED IN SUCH CREDIT BEING ALLOWED THERETO MAY, AT THE
ELECTION OF THE TAXPAYER AND AN AFFILIATE THEREOF, BE ASCRIBED TO SUCH
AFFILIATE. WHERE SUCH AFFILIATE, BASED ON SUCH ASCRIPTION, IS ALLOWED
SUCH CREDIT AND DEDUCTS FROM THE TAX OTHERWISE DUE THE AMOUNT OF SUCH
CREDIT, SUCH CREDIT SHALL BE DEEMED IN ALL RESPECTS TO HAVE BEEN ALLOWED
TO SUCH AFFILIATE; PROVIDED THAT ANY ACTION OR INACTION BY THE TAXPAYER
WHICH CONSTITUTES AN EVENT OF RECAPTURE DESCRIBED IN PARAGRAPH (E) OF
THIS SUBDIVISION SHALL BE ASCRIBED TO THE AFFILIATE AND SHALL CONSTITUTE
AN EVENT OF RECAPTURE WITH RESPECT TO THE CREDIT ALLOWED TO THE AFFIL-
IATE PURSUANT TO THIS SUBDIVISION.
(II) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, IN
THE CASE OF THE CREDIT PROVIDED FOR UNDER THIS SUBDIVISION BEING ALLOWED
TO, OR ASSERTED TO BE ALLOWED TO, AN AFFILIATE, PURSUANT TO SUBPARAGRAPH
(I) OF THIS PARAGRAPH, THE COMMISSIONER SHALL HAVE THE SAME POWERS WITH
RESPECT TO EXAMINING THE BOOKS AND RECORDS OF THE TAXPAYER, AND HAVE
SUCH OTHER POWERS OF INVESTIGATION WITH RESPECT TO THE TAXPAYER, AS ARE
AFFORDED UNDER THIS CHAPTER WITH RESPECT TO A TAXPAYER WHICH HAS
DEDUCTED THE CREDIT ALLOWED UNDER THIS SECTION FROM TAX OTHERWISE DUE,
AS IF IT WERE THE TAXPAYER WHICH HAD DEDUCTED SUCH CREDIT FROM TAX
OTHERWISE DUE.
(III) THE TERM "AFFILIATE" SHALL MEAN A CORPORATION SUBSTANTIALLY ALL
THE CAPITAL STOCK OF WHICH IS OWNED OR CONTROLLED EITHER DIRECTLY OR
INDIRECTLY BY THE TAXPAYER, OR WHICH OWNS OR CONTROLS EITHER DIRECTLY OR
INDIRECTLY SUBSTANTIALLY ALL THE CAPITAL STOCK OF THE TAXPAYER, OR
S. 703 5
SUBSTANTIALLY ALL THE CAPITAL STOCK OF WHICH IS OWNED OR CONTROLLED
EITHER DIRECTLY OR INDIRECTLY BY INTERESTS WHICH OWN OR CONTROL EITHER
DIRECTLY OR INDIRECTLY SUBSTANTIALLY ALL THE CAPITAL STOCK OF THE
TAXPAYER.
42. FRUIT PROCESSING CAPITAL EQUIPMENT CREDIT. (A) GENERAL. A TAXPAYER
SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED,
AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR CAPITAL EQUIPMENT THAT IS
USED FOR THE PRODUCTION, MANUFACTURE OR STORAGE OF WINE, LIQUOR, ALCOHOL
OR SPIRITS THAT PRIMARILY UTILIZES AGRICULTURAL PRODUCTS THAT ARE GROWN
OR PRODUCED IN THE STATE THAT IS PLACED IN SERVICE DURING THE TAXABLE
YEAR.
(B) CAPITAL EQUIPMENT FOR THE PRODUCTION, MANUFACTURE, OR STORAGE OF
WINE, LIQUOR, ALCOHOL OR SPIRITS. THE CREDIT UNDER THIS SUBDIVISION FOR
SUCH CAPITAL EQUIPMENT SHALL EQUAL FIFTY PERCENT OF THE COST OF ANY SUCH
EQUIPMENT WHICH IS USED IN THIS STATE BY A TAXPAYER LICENSED UNDER
SECTION SIXTY OR SEVENTY-FIVE OF THE ALCOHOLIC BEVERAGE CONTROL LAW THAT
IS USED FOR THE PRODUCTION, MANUFACTURE, OR STORAGE OF WINE, LIQUOR,
ALCOHOL OR SPIRITS THAT PRIMARILY UTILIZES AGRICULTURAL PRODUCTS THAT
ARE GROWN OR PRODUCED IN THE STATE.
(C) DEFINITION. THE TERM "CAPITAL EQUIPMENT" MEANS, FOR THE PURPOSES
OF THIS SUBDIVISION, MACHINERY, TOOLS, PRESSES, PUMPS, COOPERAGE, OTHER
STORAGE TANKS, APPLIANCES AND OTHER SIMILAR EQUIPMENT USED FOR THE
PRODUCTION, MANUFACTURE, OR STORAGE OF WINE, LIQUOR, ALCOHOL OR SPIRITS.
(D) CARRYOVERS. IN NO EVENT SHALL THE CREDIT UNDER THIS SUBDIVISION BE
ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN THE
HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVI-
SION ONE OF THIS SECTION. PROVIDED, HOWEVER, THAT IF THE AMOUNT OF CRED-
IT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX
TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR
MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED
FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
(E) CREDIT RECAPTURE. (I) IF, AT ANY TIME BEFORE THE END OF ITS RECOV-
ERY PERIOD, SUCH CAPITAL EQUIPMENT CEASES TO BE QUALIFIED, A RECAPTURE
AMOUNT MUST BE ADDED BACK IN THE YEAR IN WHICH SUCH CESSATION OCCURS.
(II) SUCH CAPITAL EQUIPMENT CEASES TO BE QUALIFIED IF:
(A) SUCH EQUIPMENT IS NOT ACTUALLY USED IN THIS STATE FOR THE
PRODUCTION, MANUFACTURE OR STORAGE OF WINE, LIQUOR, ALCOHOL OR SPIRITS
THAT PRIMARILY UTILIZES AGRICULTURAL PRODUCTS THAT ARE GROWN OR PRODUCED
IN THE STATE BY A TAXPAYER LICENSED UNDER SECTION SIXTY OR SEVENTY-FIVE
OF THE ALCOHOLIC BEVERAGE CONTROL LAW FOR THE TEN YEARS NEXT SUCCEEDING
THE PLACEMENT OF SUCH EQUIPMENT IN SERVICE; UNLESS SUCH EQUIPMENT HAS A
PERIOD OF PROBABLE USEFULNESS THAT IS LESS THAN TEN YEARS, IN WHICH CASE
SUCH PERIOD OF PROBABLE USEFULNESS SHALL BE THE RECOVERY PERIOD; OR
(B) THE TAXPAYER RECEIVING THE CREDIT UNDER THIS SUBDIVISION SELLS OR
DISPOSES OF THE EQUIPMENT AND KNOWS OR HAS REASON TO KNOW THAT THE
EQUIPMENT WILL BE USED IN A MANNER DESCRIBED IN CLAUSE (A) OF THIS
SUBPARAGRAPH.
(III) RECAPTURE AMOUNT. THE RECAPTURE AMOUNT IS EQUAL TO THE CREDIT
ALLOWABLE UNDER THIS SUBDIVISION MULTIPLIED BY A FRACTION, THE NUMERATOR
OF WHICH IS THE TOTAL RECOVERY PERIOD FOR THE PROPERTY MINUS THE NUMBER
OF RECOVERY YEARS PRIOR TO, BUT NOT INCLUDING, THE RECAPTURE YEAR, AND
THE DENOMINATOR OF WHICH IS THE TOTAL RECOVERY PERIOD.
(F) AFFILIATES. (I) IF A CREDIT UNDER THIS SUBDIVISION IS ALLOWED TO A
TAXPAYER WITH RESPECT TO A TAXABLE YEAR, THE ACTION TAKEN BY SUCH
TAXPAYER WHICH RESULTED IN SUCH CREDIT BEING ALLOWED THERETO MAY, AT THE
ELECTION OF THE TAXPAYER AND AN AFFILIATE THEREOF, BE ASCRIBED TO SUCH
S. 703 6
AFFILIATE. WHERE SUCH AFFILIATE, BASED ON SUCH ASCRIPTION, IS ALLOWED
SUCH CREDIT AND DEDUCTS FROM THE TAX OTHERWISE DUE THE AMOUNT OF SUCH
CREDIT, SUCH CREDIT SHALL BE DEEMED IN ALL RESPECTS TO HAVE BEEN ALLOWED
TO SUCH AFFILIATE; PROVIDED THAT ANY ACTION OR INACTION BY THE TAXPAYER
WHICH CONSTITUTES AN EVENT OF RECAPTURE DESCRIBED IN PARAGRAPH (E) OF
THIS SUBDIVISION SHALL BE ASCRIBED TO THE AFFILIATE AND SHALL CONSTITUTE
AN EVENT OF RECAPTURE WITH RESPECT TO THE CREDIT ALLOWED TO THE AFFIL-
IATE PURSUANT TO THIS SUBDIVISION.
(II) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, IN
THE CASE OF THE CREDIT PROVIDED FOR UNDER THIS SUBDIVISION BEING ALLOWED
TO, OR ASSERTED TO BE ALLOWED TO, AN AFFILIATE, PURSUANT TO SUBPARAGRAPH
(I) OF THIS PARAGRAPH, THE COMMISSIONER SHALL HAVE THE SAME POWERS WITH
RESPECT TO EXAMINING THE BOOKS AND RECORDS OF THE TAXPAYER, AND HAVE
SUCH OTHER POWERS OF INVESTIGATION WITH RESPECT TO THE TAXPAYER, AS ARE
AFFORDED UNDER THIS CHAPTER WITH RESPECT TO A TAXPAYER WHICH HAS
DEDUCTED THE CREDIT ALLOWED UNDER THIS SECTION FROM TAX OTHERWISE DUE,
AS IF IT WERE THE TAXPAYER WHICH HAD DEDUCTED SUCH CREDIT FROM TAX
OTHERWISE DUE.
(III) THE TERM "AFFILIATE" SHALL MEAN A CORPORATION SUBSTANTIALLY ALL
THE CAPITAL STOCK OF WHICH IS OWNED OR CONTROLLED EITHER DIRECTLY OR
INDIRECTLY BY THE TAXPAYER, OR WHICH OWNS OR CONTROLS EITHER DIRECTLY OR
INDIRECTLY SUBSTANTIALLY ALL THE CAPITAL STOCK OF THE TAXPAYER, OR
SUBSTANTIALLY ALL THE CAPITAL STOCK OF WHICH IS OWNED OR CONTROLLED
EITHER DIRECTLY OR INDIRECTLY BY INTERESTS WHICH OWN OR CONTROL EITHER
DIRECTLY OR INDIRECTLY SUBSTANTIALLY ALL THE CAPITAL STOCK OF THE
TAXPAYER.
S 10. Section 606 of the tax law is amended by adding two new
subsections (qq) and (rr) to read as follows:
(QQ) VINEYARD GRAPE PLANTS CREDIT. (1) GENERAL. A TAXPAYER SHALL BE
ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE
TAX IMPOSED BY THIS ARTICLE FOR VINEYARD GRAPE PLANTS PLACED IN SERVICE
DURING THE TAXABLE YEAR.
(2) VINEYARD GRAPE PLANTS. THE CREDIT UNDER THIS SUBSECTION FOR VINE-
YARD GRAPE PLANTS SHALL EQUAL SEVENTY-FIVE PERCENT OF THE COST OF ANY
SUCH PLANTS WHICH ARE PLANTED WITHIN "LAND USED IN AGRICULTURAL
PRODUCTION", AS DEFINED IN SUBDIVISION FOUR OF SECTION THREE HUNDRED ONE
OF THE AGRICULTURE AND MARKETS LAW, WHETHER OR NOT SUCH LAND IS WITHIN
AN AGRICULTURAL DISTRICT WITHIN THE MEANING OF ARTICLE TWENTY-FIVE-AA OF
THE AGRICULTURE AND MARKETS LAW.
(3) DEFINITION. THE TERM "VINEYARD GRAPE PLANTS" MEANS NEW GRAPE PLANT
MATERIAL USED TO PLANT NEW VINEYARDS OR REPLANT PRESENTLY OR PREVIOUSLY
EXISTING OLD VINEYARDS.
(4) CARRYOVERS. IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS
SUBSECTION SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS MAY
BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM
THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
(5) CREDIT RECAPTURE. (A) IF, AT ANY TIME BEFORE THE END OF ITS RECOV-
ERY PERIOD, VINEYARD GRAPE PLANTS CEASE TO BE QUALIFIED, A RECAPTURE
AMOUNT MUST BE ADDED BACK IN THE YEAR IN WHICH SUCH CESSATION OCCURS.
(B) VINEYARD GRAPE PLANTS CEASE TO BE QUALIFIED IF:
(I) SUCH VINEYARD IS NOT ACTUALLY USED FOR CROP PRODUCTION FOR THE TEN
YEARS NEXT SUCCEEDING THE PLANTING THEREOF; PROVIDED THAT CROP
PRODUCTION SHALL NOT BE DEEMED TO REQUIRE HARVESTING; OR
(II) THE TAXPAYER RECEIVING THE CREDIT UNDER THIS SUBSECTION SELLS OR
DISPOSES OF THE PROPERTY AND KNOWS OR HAS REASON TO KNOW THAT THE PROP-
S. 703 7
ERTY WILL BE USED IN A MANNER DESCRIBED IN CLAUSE (I) OF THIS SUBPARA-
GRAPH.
(III) RECAPTURE AMOUNT. THE RECAPTURE AMOUNT IS EQUAL TO THE CREDIT
ALLOWABLE UNDER THIS SUBSECTION MULTIPLIED BY A FRACTION, THE NUMERATOR
OF WHICH IS THE TOTAL RECOVERY PERIOD FOR THE PROPERTY MINUS THE NUMBER
OF RECOVERY YEARS PRIOR TO, BUT NOT INCLUDING, THE RECAPTURE YEAR, AND
THE DENOMINATOR OF WHICH IS THE TOTAL RECOVERY PERIOD.
(RR) FRUIT PROCESSING CAPITAL EQUIPMENT CREDIT. (1) GENERAL. A TAXPAY-
ER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED,
AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR CAPITAL EQUIPMENT THAT IS
USED FOR THE PRODUCTION, MANUFACTURE OR STORAGE OF WINE, LIQUOR, ALCOHOL
OR SPIRITS THAT PRIMARILY UTILIZE AGRICULTURAL PRODUCTS THAT ARE GROWN
OR PRODUCED IN THE STATE THAT IS PLACED IN SERVICE DURING THE TAXABLE
YEAR.
(2) CAPITAL EQUIPMENT FOR THE PRODUCTION, MANUFACTURE OR STORAGE OF
WINE, LIQUOR, ALCOHOL OR SPIRITS. THE CREDIT UNDER THIS SUBSECTION FOR
SUCH CAPITAL EQUIPMENT SHALL EQUAL FIFTY PERCENT OF THE COST OF ANY SUCH
EQUIPMENT WHICH IS USED IN THIS STATE BY A TAXPAYER LICENSED UNDER
SECTION SIXTY OR SEVENTY-FIVE OF THE ALCOHOLIC BEVERAGE CONTROL LAW THAT
IS USED FOR THE PRODUCTION, MANUFACTURE, OR STORAGE OF WINE, LIQUOR,
ALCOHOL OR SPIRITS THAT PRIMARILY UTILIZES AGRICULTURAL PRODUCTS THAT
ARE GROWN OR PRODUCED IN THE STATE.
(3) DEFINITION. THE TERM "CAPITAL EQUIPMENT" MEANS, FOR THE PURPOSES
OF THIS SUBSECTION, MACHINERY, TOOLS, PRESSES, PUMPS, COOPERAGE, OTHER
STORAGE TANKS, APPLIANCES AND OTHER SIMILAR EQUIPMENT USED FOR THE
PRODUCTION, MANUFACTURE, OR STORAGE OF WINE, LIQUOR, ALCOHOL OR SPIRITS.
(4) CARRYOVERS. IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS
SUBSECTION SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS MAY
BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM
THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
(5) CREDIT RECAPTURE. (I) IF, AT ANY TIME BEFORE THE END OF ITS RECOV-
ERY PERIOD, SUCH CAPITAL EQUIPMENT CEASES TO BE QUALIFIED, A RECAPTURE
AMOUNT MUST BE ADDED BACK IN THE YEAR IN WHICH SUCH CESSATION OCCURS.
(II) SUCH CAPITAL EQUIPMENT CEASES TO BE QUALIFIED IF:
(A) SUCH EQUIPMENT IS NOT ACTUALLY USED IN THIS STATE FOR THE
PRODUCTION, MANUFACTURE OR STORAGE OF WINE, LIQUOR, ALCOHOL OR SPIRITS
THAT PRIMARILY UTILIZES AGRICULTURAL PRODUCTS THAT ARE GROWN OR PRODUCED
IN THE STATE BY A TAXPAYER LICENSED UNDER SECTION SIXTY OR SEVENTY-FIVE
OF THE ALCOHOLIC BEVERAGE CONTROL LAW FOR THE TEN YEARS NEXT SUCCEEDING
THE PLACEMENT OF SUCH EQUIPMENT IN SERVICE; UNLESS SUCH EQUIPMENT HAS A
PERIOD OF PROBABLE USEFULNESS THAT IS LESS THAN TEN YEARS, IN WHICH CASE
SUCH PERIOD OF PROBABLE USEFULNESS SHALL BE THE RECOVERY PERIOD; OR
(B) THE TAXPAYER RECEIVING THE CREDIT UNDER THIS SUBSECTION SELLS OR
DISPOSES OF THE EQUIPMENT AND KNOWS OR HAS REASON TO KNOW THAT THE
EQUIPMENT WILL BE USED IN A MANNER DESCRIBED IN CLAUSE (A) OF THIS
SUBPARAGRAPH.
(III) RECAPTURE AMOUNT. THE RECAPTURE AMOUNT IS EQUAL TO THE CREDIT
ALLOWABLE UNDER THIS SUBSECTION MULTIPLIED BY A FRACTION, THE NUMERATOR
OF WHICH IS THE TOTAL RECOVERY PERIOD FOR THE PROPERTY MINUS THE NUMBER
OF RECOVERY YEARS PRIOR TO, BUT NOT INCLUDING, THE RECAPTURE YEAR, AND
THE DENOMINATOR OF WHICH IS THE TOTAL RECOVERY PERIOD.
S 11. The commissioner of taxation and finance is authorized and
directed to promulgate any rules and regulations necessary to implement
the provisions of this act.
S 12. This act shall take effect immediately; provided, however, that
section eight of this act shall take effect on the same date and in the
S. 703 8
same manner as chapter 571 of the laws of 2008 takes effect; and
provided, further, that sections nine and ten of this act shall apply to
taxable years commencing on or after January first of the year in which
it shall have become a law.
