The New York State Senate

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

    S. 346--A                                              A. 152--A
    Cal. No. 1050

                       2011-2012 Regular Sessions

                      S E N A T E - A S S E M B L Y

                               (PREFILED)

                             January 5, 2011
                               ___________

IN  SENATE -- Introduced by Sen. LITTLE -- read twice and ordered print-
  ed, and when printed to be committed  to  the  Committee  on  Investi-
  gations  and  Government Operations -- recommitted to the Committee on
  Investigations and Government Operations  in  accordance  with  Senate
  Rule 6, sec. 8 -- reported favorably from said committee and committed
  to the Committee on Finance -- reported favorably from said committee,
  ordered  to  first  and  second  report,  ordered  to a third reading,
  amended and ordered reprinted, retaining its place  in  the  order  of
  third reading

IN  ASSEMBLY -- Introduced by M. of A. SAYWARD -- read once and referred
  to the Committee on Ways and Means -- recommitted to the Committee  on
  Ways and Means in accordance with Assembly Rule 3, sec. 2 -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to  amend  the  tax law, in relation to establishing a forestry
  stewardship and habitat conservation credit for  personal  income  and
  business franchise taxes

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
subsection (aaa) to read as follows:
  (AAA) FORESTRY STEWARDSHIP AND HABITAT CONSERVATION CREDIT. (1) IN THE
CASE  OF  A TAXPAYER WHO OWNS LAND THAT IS SUBJECT  TO AN AGREEMENT WITH
THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION,  BY  WHICH  SUCH  LAND  IS
COMMITTED  TO  FORESTRY  STEWARDSHIP,  OR HABITAT CONSERVATION, OR BOTH,
THERE SHALL BE ALLOWED A CREDIT FOR  TWENTY-FIVE  PERCENT  OF  THE  REAL
PROPERTY  TAXES  PAID ON SUCH LAND. IN NO EVENT SHALL THE CREDIT ALLOWED
UNDER THIS SUBSECTION IN COMBINATION WITH ANY OTHER CREDIT FOR SUCH REAL

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD01361-02-2

S. 346--A                           2                          A. 152--A

PROPERTY TAXES UNDER THIS SECTION EXCEED THE TOTAL AMOUNT OF SUCH  TAXES
PAID DURING THE TAXABLE YEAR.
  (2) FOR THE PURPOSES OF THIS SUBSECTION:
  (A)  "ELIGIBLE  TRACT"  SHALL  MEAN  A  TRACT  OF  LAND  OF  AT  LEAST
TWENTY-FIVE CONTIGUOUS ACRES THAT HAS BEEN INSPECTED BY  THE  DEPARTMENT
OF  ENVIRONMENTAL  CONSERVATION,  A  WILDLIFE BIOLOGIST CERTIFIED BY THE
WILDLIFE SOCIETY, OR A FISHERIES BIOLOGIST  CERTIFIED  BY  THE  AMERICAN
FISHERIES  SOCIETY,  AND  BASED  ON SUCH INSPECTION IS DETERMINED BY THE
DEPARTMENT OF ENVIRONMENTAL CONSERVATION TO  BE:  VALUABLE  HABITAT  FOR
WILDLIFE, FISH, SHELLFISH OR CRUSTACEA; OR SAFE AND SUITABLE FOR FISH OR
WILDLIFE-RELATED  RECREATION,  INCLUDING  FISHING, HUNTING, TRAPPING AND
WILDLIFE OBSERVATION; OR BOTH. LAND  DIVIDED  ONLY  BY  FEDERAL,  STATE,
COUNTY OR TOWN ROADS, EASEMENTS OR RIGHTS-OF-WAY, OR ENERGY TRANSMISSION
CORRIDORS  OR  SIMILAR  FACILITIES  SHALL  BE  CONSIDERED CONTIGUOUS FOR
PURPOSES OF THIS SECTION.
  (B) "AGREEMENT" SHALL MEAN A WRITTEN AGREEMENT BETWEEN THE  DEPARTMENT
OF  ENVIRONMENTAL  CONSERVATION  AND  THE  OWNER  OF  AN ELIGIBLE TRACT,
EXECUTED BY BOTH PARTIES, BY WHICH THE ELIGIBLE  TRACT IS  COMMITTED  TO
HABITAT  CONSERVATION, OR FORESTRY STEWARDSHIP, OR BOTH, FOR A PERIOD OF
NOT LESS THAN FIVE YEARS.
  (C) "APPROVED HABITAT CONSERVATION PLAN" SHALL MEAN A  PLAN,  APPROVED
BY  THE  DEPARTMENT OF ENVIRONMENTAL CONSERVATION, FOR THE MANAGEMENT OF
AN ELIGIBLE TRACT WHICH SHALL CONTAIN REQUIREMENTS  AND  STANDARDS  WITH
WHICH  THE  OWNER OF THE ELIGIBLE TRACT MUST COMPLY IN ORDER TO CONSERVE
THE VALUE OF THE LAND AS WILDLIFE, FISH, SHELLFISH, OR  CRUSTACEA  HABI-
TAT.
  (D)  "FORESTRY  STEWARDSHIP"  SHALL  MEAN  PARTICIPATION  IN  A FOREST
CERTIFICATION PROGRAM (SUCH AS FOREST STEWARDSHIP COUNCIL CERTIFICATION,
SUSTAINABLE FORESTRY  INITIATIVE,  AMERICAN  TREE  FARM  PROGRAM,  ETC.)
RECOGNIZED IN THE REGULATIONS OF THE DEPARTMENT OF ENVIRONMENTAL CONSER-
VATION.
  (3)  THERE IS HEREBY CREATED A NEW YORK STATE FORESTRY STEWARDSHIP AND
HABITAT CONSERVATION PROGRAM FOR THE PURPOSE OF PROVIDING FORESTED LANDS
IN THE STATE AND CONSERVING THE VALUE OF LAND IN THE STATE AS  WILDLIFE,
FISH, SHELLFISH OR CRUSTACEA HABITAT.
  (4)  A  LANDOWNER  MAY  MAKE APPLICATION TO THE DEPARTMENT OF ENVIRON-
MENTAL CONSERVATION, ON FORMS PRESCRIBED BY  SUCH  DEPARTMENT,  TO  HAVE
LAND  INCLUDED  IN  THE NEW YORK STATE HABITAT CONSERVATION AND FORESTRY
STEWARDSHIP PROGRAM. IF, BASED ON AN  INSPECTION  OF  THE  LAND  BY  THE
DEPARTMENT OF ENVIRONMENTAL CONSERVATION, OR A WILDLIFE BIOLOGIST CERTI-
FIED  BY THE WILDLIFE SOCIETY, OR A FISHERIES BIOLOGIST CERTIFIED BY THE
AMERICAN FISHERIES SOCIETY, THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
DETERMINES THAT SUCH LAND IS AN ELIGIBLE  TRACT,  IT  SHALL  NOTIFY  THE
LANDOWNER  THAT THE LAND IS ELIGIBLE FOR INCLUSION IN THE NEW YORK STATE
HABITAT CONSERVATION AND FORESTRY STEWARDSHIP PROGRAM.
  (5)  THE  DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION  MAY,   IN   ITS
DISCRETION,  ENTER  INTO  AGREEMENTS  WITH OWNERS OF ELIGIBLE TRACTS FOR
PURPOSES OF FORESTRY STEWARDSHIP, OR HABITAT CONSERVATION, OR BOTH. SUCH
AGREEMENTS SHALL BE FOR A MINIMUM DURATION  OF  FIVE  YEARS,  AND  SHALL
CONTAIN  A DESCRIPTION OF THE PROPERTY THAT IS THE SUBJECT OF THE AGREE-
MENT, AND SUCH TERMS AND CONDITIONS AS THE DEPARTMENT DEEMS APPROPRIATE,
INCLUDING, BUT NOT LIMITED TO:
  (A) FOR FORESTRY STEWARDSHIP AGREEMENTS, A DESCRIPTION OF THE  PARTIC-
IPATION  IN A FOREST CERTIFICATION PROGRAM FOR A PERIOD OF NOT LESS THAN
FIVE YEARS;

S. 346--A                           3                          A. 152--A

  (B) FOR HABITAT CONSERVATION AGREEMENTS, A REQUIREMENT THAT THE  LAND-
OWNER  DEVELOP  A HABITAT CONSERVATION PLAN AND IMPLEMENT THE PLAN FOR A
PERIOD OF NOT LESS THAN FIVE YEARS;
  (C)  FOR  HABITAT  CONSERVATION AND FORESTRY STEWARDSHIP AGREEMENTS, A
REQUIREMENT THAT THE LANDOWNER DEVELOP A HABITAT CONSERVATION  PLAN  AND
IMPLEMENT  THE  PLAN  FOR  A  PERIOD  OF NOT LESS THAN FIVE YEARS; AND A
DESCRIPTION OF PARTICIPATION IN A FOREST  CERTIFICATION  PROGRAM  FOR  A
PERIOD OF NOT LESS THAN FIVE YEARS;
  (D) A REQUIREMENT THAT THE LANDOWNER'S OBLIGATIONS CONCERNING THE LAND
UNDER THE TERMS OF THE AGREEMENT, AS WELL AS ANY BENEFITS, SHALL PASS TO
ANY  SUCCESSOR  IN INTEREST TO SUCH LAND FOR THE DURATION OF THE TERM OF
THE AGREEMENT; AND
  (E) A REQUIREMENT THAT A COPY OF THE AGREEMENT SHALL BE DULY  RECORDED
AND INDEXED AS SUCH IN THE OFFICE OF THE RECORDING OFFICER FOR THE COUN-
TY  OR  COUNTIES  WHERE  THE LAND IS SITUATE IN THE MANNER PRESCRIBED BY
ARTICLE NINE OF THE REAL PROPERTY LAW; AND THAT ANY  SUBSEQUENT  INSTRU-
MENT  OF CONVEYANCE RELATING TO THE PROPERTY ENCUMBERED BY THE AGREEMENT
SHALL REFERENCE, BY BOOK AND PAGE NUMBER, THE AGREEMENT; AND  THAT  SUCH
INSTRUMENT  SHALL  ALSO  SPECIFY  THAT  THE  PROPERTY  IS SUBJECT TO THE
RESTRICTIONS CONTAINED IN THE AGREEMENT; AND THAT AN INSTRUMENT FOR  THE
PURPOSE  OF  CREATING, CONVEYING, MODIFYING OR TERMINATING THE AGREEMENT
SHALL NOT BE EFFECTIVE UNLESS RECORDED.
  (6) THE AMOUNT OF THE CREDIT THAT MAY BE CLAIMED BY A TAXPAYER  PURSU-
ANT  TO  THIS  SUBSECTION  SHALL  NOT EXCEED TEN THOUSAND DOLLARS IN ANY
GIVEN YEAR.
  (7) IF THE AMOUNT OF THE CREDIT UNDER THIS SUBSECTION FOR ANY  TAXABLE
YEAR  SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL BE
TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORD-
ANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTI-
CLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S  2.  Paragraph 4 of subsection (n) of section 606 of the tax law, as
amended by section 2 of part F of chapter 62 of the  laws  of  2006,  is
amended to read as follows:
  (4)  Qualified agricultural property. For purposes of this subsection,
the term "qualified agricultural property" means land  located  in  this
state  which  is used in agricultural production, and land improvements,
structures and buildings (excluding buildings used  for  the  taxpayer's
residential  purpose) located on such land which are used or occupied to
carry out such production. Qualified agricultural property also includes
land set aside or retired under a  federal  supply  management  or  soil
conservation  program  or  land that at the time it becomes subject to a
conservation easement, as defined under subsection (kk) of this section,
met the requirements under this paragraph, AND LAND THAT AT THE TIME  IT
BECOMES  SUBJECT  TO AN AGREEMENT AS DEFINED IN SUBSECTION (AAA) OF THIS
SECTION MET THE REQUIREMENTS UNDER THIS PARAGRAPH.
  S 3. Section 210 of the tax law is amended by adding a new subdivision
45 to read as follows:
  45. FORESTRY STEWARDSHIP AND HABITAT CONSERVATION CREDIT. (1)  IN  THE
CASE  OF  A  TAXPAYER WHO OWNS LAND THAT IS SUBJECT TO AN AGREEMENT WITH
THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION,  BY  WHICH  SUCH  LAND  IS
COMMITTED  TO  FORESTRY  STEWARDSHIP,  OR HABITAT CONSERVATION, OR BOTH,
THERE SHALL BE ALLOWED A CREDIT FOR   TWENTY-FIVE PERCENT  OF  THE  REAL
PROPERTY  TAXES  PAID ON SUCH LAND. IN NO EVENT SHALL THE CREDIT ALLOWED
UNDER THIS SUBDIVISION IN COMBINATION WITH ANY  OTHER  CREDIT  FOR  SUCH
REAL  PROPERTY  TAXES UNDER THIS SECTION EXCEED THE TOTAL AMOUNT OF SUCH
TAXES PAID DURING THE TAXABLE YEAR.

S. 346--A                           4                          A. 152--A

  (2) FOR THE PURPOSES OF THIS SUBDIVISION:
  (A)  "ELIGIBLE  TRACT"  SHALL  MEAN  A  TRACT  OF  LAND  OF  AT  LEAST
TWENTY-FIVE CONTIGUOUS ACRES THAT HAS BEEN INSPECTED BY  THE  DEPARTMENT
OF  ENVIRONMENTAL  CONSERVATION,  A  WILDLIFE BIOLOGIST CERTIFIED BY THE
WILDLIFE SOCIETY, OR A FISHERIES BIOLOGIST  CERTIFIED  BY  THE  AMERICAN
FISHERIES  SOCIETY,  AND  BASED  ON SUCH INSPECTION IS DETERMINED BY THE
DEPARTMENT OF ENVIRONMENTAL CONSERVATION TO  BE:  VALUABLE  HABITAT  FOR
WILDLIFE, FISH, SHELLFISH OR CRUSTACEA; OR SAFE AND SUITABLE FOR FISH OR
WILDLIFE-RELATED  RECREATION,  INCLUDING  FISHING, HUNTING, TRAPPING AND
WILDLIFE OBSERVATION; OR BOTH. LAND  DIVIDED  ONLY  BY  FEDERAL,  STATE,
COUNTY OR TOWN ROADS, EASEMENTS OR RIGHTS-OF-WAY, OR ENERGY TRANSMISSION
CORRIDORS  OR  SIMILAR  FACILITIES  SHALL  BE  CONSIDERED CONTIGUOUS FOR
PURPOSES OF THIS SECTION.
  (B) "AGREEMENT" SHALL MEAN A WRITTEN AGREEMENT BETWEEN THE  DEPARTMENT
OF  ENVIRONMENTAL  CONSERVATION  AND  THE  OWNER  OF  AN ELIGIBLE TRACT,
EXECUTED BY BOTH PARTIES, BY WHICH THE ELIGIBLE TRACT  IS  COMMITTED  TO
HABITAT  CONSERVATION, OR FORESTRY STEWARDSHIP, OR BOTH, FOR A PERIOD OF
NOT LESS THAN FIVE YEARS.
  (C) "APPROVED HABITAT CONSERVATION PLAN" SHALL MEAN A  PLAN,  APPROVED
BY  THE  DEPARTMENT OF ENVIRONMENTAL CONSERVATION, FOR THE MANAGEMENT OF
AN ELIGIBLE TRACT WHICH SHALL CONTAIN REQUIREMENTS  AND  STANDARDS  WITH
WHICH  THE  OWNER OF THE ELIGIBLE TRACT MUST COMPLY IN ORDER TO CONSERVE
THE VALUE OF THE LAND AS WILDLIFE, FISH, SHELLFISH, OR  CRUSTACEA  HABI-
TAT.
  (D)  "FORESTRY  STEWARDSHIP"  SHALL  MEAN  PARTICIPATION  IN  A FOREST
CERTIFICATION PROGRAM (SUCH AS FOREST STEWARDSHIP COUNCIL CERTIFICATION,
SUSTAINABLE FORESTRY  INITIATIVE,  AMERICAN  TREE  FARM  PROGRAM,  ETC.)
RECOGNIZED IN THE REGULATIONS OF THE DEPARTMENT OF ENVIRONMENTAL CONSER-
VATION.
  (3)  THERE IS HEREBY CREATED A NEW YORK STATE FORESTRY STEWARDSHIP AND
HABITAT CONSERVATION PROGRAM FOR THE PURPOSE OF PROVIDING FORESTED LANDS
IN THE STATE AND CONSERVING THE VALUE OF LAND IN THE STATE AS  WILDLIFE,
FISH, SHELLFISH OR CRUSTACEA HABITAT.
  (4)  A  LANDOWNER  MAY  MAKE APPLICATION TO THE DEPARTMENT OF ENVIRON-
MENTAL CONSERVATION, ON FORMS PRESCRIBED BY  SUCH  DEPARTMENT,  TO  HAVE
LAND  INCLUDED  IN  THE NEW YORK STATE HABITAT CONSERVATION AND FORESTRY
STEWARDSHIP PROGRAM. IF, BASED ON AN  INSPECTION  OF  THE  LAND  BY  THE
DEPARTMENT OF ENVIRONMENTAL CONSERVATION, OR A WILDLIFE BIOLOGIST CERTI-
FIED  BY THE WILDLIFE SOCIETY, OR A FISHERIES BIOLOGIST CERTIFIED BY THE
AMERICAN FISHERIES SOCIETY, THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
DETERMINES THAT SUCH LAND IS AN ELIGIBLE  TRACT,  IT  SHALL  NOTIFY  THE
LANDOWNER  THAT THE LAND IS ELIGIBLE FOR INCLUSION IN THE NEW YORK STATE
HABITAT CONSERVATION AND FORESTRY STEWARDSHIP PROGRAM.
  (5)  THE  DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION  MAY,   IN   ITS
DISCRETION,  ENTER  INTO  AGREEMENTS  WITH OWNERS OF ELIGIBLE TRACTS FOR
PURPOSES OF HABITAT CONSERVATION, OR FORESTRY STEWARDSHIP, OR BOTH. SUCH
AGREEMENTS SHALL BE FOR A MINIMUM DURATION  OF  FIVE  YEARS,  AND  SHALL
CONTAIN  A DESCRIPTION OF THE PROPERTY THAT IS THE SUBJECT OF THE AGREE-
MENT, AND SUCH TERMS AND CONDITIONS AS THE DEPARTMENT DEEMS APPROPRIATE,
INCLUDING, BUT NOT LIMITED TO:
  (A) FOR FORESTRY STEWARDSHIP AGREEMENTS, A DESCRIPTION OF THE  PARTIC-
IPATION  IN A FOREST CERTIFICATION PROGRAM FOR A PERIOD OF NOT LESS THAN
FIVE YEARS;
  (B) FOR HABITAT CONSERVATION AGREEMENTS, A REQUIREMENT THAT THE  LAND-
OWNER  DEVELOP  A HABITAT CONSERVATION PLAN AND IMPLEMENT THE PLAN FOR A
PERIOD OF NOT LESS THAN FIVE YEARS;

S. 346--A                           5                          A. 152--A

  (C) FOR HABITAT CONSERVATION AND FORESTRY  STEWARDSHIP  AGREEMENTS,  A
REQUIREMENT  THAT  THE LANDOWNER DEVELOP A HABITAT CONSERVATION PLAN AND
IMPLEMENT THE PLAN FOR A PERIOD OF NOT  LESS  THAN  FIVE  YEARS;  AND  A
DESCRIPTION  OF  PARTICIPATION  IN  A FOREST CERTIFICATION PROGRAM FOR A
PERIOD OF NOT LESS THAN FIVE YEARS;
  (D) A REQUIREMENT THAT THE LANDOWNER'S OBLIGATIONS CONCERNING THE LAND
UNDER THE TERMS OF THE AGREEMENT, AS WELL AS ANY BENEFITS, SHALL PASS TO
ANY  SUCCESSOR  IN INTEREST TO SUCH LAND FOR THE DURATION OF THE TERM OF
THE AGREEMENT; AND
  (E) A REQUIREMENT THAT A COPY OF THE AGREEMENT SHALL BE DULY  RECORDED
AND INDEXED AS SUCH IN THE OFFICE OF THE RECORDING OFFICER FOR THE COUN-
TY  OR  COUNTIES  WHERE  THE LAND IS SITUATE IN THE MANNER PRESCRIBED BY
ARTICLE NINE OF THE REAL PROPERTY LAW; AND THAT ANY  SUBSEQUENT  INSTRU-
MENT  OF CONVEYANCE RELATING TO THE PROPERTY ENCUMBERED BY THE AGREEMENT
SHALL REFERENCE, BY BOOK AND PAGE NUMBER, THE AGREEMENT; AND  THAT  SUCH
INSTRUMENT  SHALL  ALSO  SPECIFY  THAT  THE  PROPERTY  IS SUBJECT TO THE
RESTRICTIONS CONTAINED IN THE AGREEMENT; AND THAT AN INSTRUMENT FOR  THE
PURPOSE  OF  CREATING, CONVEYING, MODIFYING OR TERMINATING THE AGREEMENT
SHALL NOT BE EFFECTIVE UNLESS RECORDED.
  (6) THE AMOUNT OF THE CREDIT THAT MAY BE CLAIMED BY A TAXPAYER  PURSU-
ANT  TO  THIS  SUBDIVISION  SHALL NOT EXCEED TEN THOUSAND DOLLARS IN ANY
GIVEN YEAR.
  (7) IF THE AMOUNT OF THE CREDIT UNDER THIS SUBDIVISION FOR ANY TAXABLE
YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL  BE
TREATED  AS  AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORD-
ANCE WITH THE PROVISIONS OF SECTION TEN HUNDRED EIGHTY-SIX OF THIS CHAP-
TER, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S 4. Paragraph (d) of subdivision 22 of section 210 of the tax law, as
amended by section 4 of part F of chapter 62 of the  laws  of  2006,  is
amended to read as follows:
  (d) Qualified agricultural property. For purposes of this subdivision,
the  term  "qualified  agricultural property" means land located in this
state which is used in agricultural production, and  land  improvements,
structures  and  buildings  (excluding buildings used for the taxpayer's
residential purpose) located on such land which are used or occupied  to
carry out such production. Qualified agricultural property also includes
land  set  aside  or  retired  under a federal supply management or soil
conservation program [or], land that at the time it becomes subject to a
conservation easement, as defined under subdivision thirty-eight of this
section, met the requirements under this paragraph AND LAND THAT AT  THE
TIME  IT  BECOMES  SUBJECT  TO AN AGREEMENT AS DEFINED UNDER SUBDIVISION
FORTY-FIVE OF THIS SECTION, MET THE REQUIREMENTS UNDER THIS PARAGRAPH.
  S 5. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended by adding a new clause (xxxiv) to read as
follows:

(XXXIV) FOREST STEWARDSHIP AND       AMOUNT OF CREDIT UNDER
HABITAT CONSERVATION                 SUBDIVISION FORTY-FIVE OF
CREDIT UNDER SUBSECTION (AAA)        SECTION TWO HUNDRED TEN
  S 6.  This act shall take effect immediately.