BILL NUMBER:S7551         REVISED 06/04/12

TITLE OF BILL:
An act
to amend the tax law, in relation to establishing an agricultural crop
loss personal income tax credit

PURPOSE:
The bill establishes a refundable personal income tax credit to
farmers for the loss of certain crops as a result of frost for the
2012 taxable year.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1. Amends Section 606 of the Tax Law by adding a new
subsection (uu) which establishes an agricultural crop loss
refundable personal income tax credit to farmers for the loss or
damage of certain agricultural crops as a result of frost injury in
2012. To be eligible for the credit, a taxpayer must derive at least
two-thirds of reported federal gross income from farming for the
taxable year. The amount of the credit is equal to thirty-five
percent of the average value of the unit of production for New York
State as reported by the USDA National Agricultural Statistics
Service for 2011, multiplied by a taxpayer's acreage in production,
including newly planted acreage, for the 2012 growing season.

Subsection (2) specifies that if the amount of the credit exceeds the
              

taxpayer's tax for such year, the excess shall be treated as an
overpayment of tax to be credited or refunded without having accrued
interest.

Subsection (3) defines which damaged crops a taxpayer may receive a
tax credit for and includes: fruits, including apples, peaches,
grapes, cherries and berries; vegetables, including tomatoes, snap
beans, cabbage, carrots, beets and onions; and potatoes and dry beans.

Section 2. Specifies that the effective date shall be immediately.

JUSTIFICATION:
At the beginning of the 2012 growing season, New York State's farmers
experienced widespread damage and loss to their crops as a result of
an extremely rare severe frost event.
Upon initial notification, elected officials and farm organizations
immediately requested that the Governor contact the USDA Secretary of
Agriculture and ask that a disaster declaration be issued for
counties where farmers experienced damage to their crops. In doing
so, farmers in counties that receive such a designation would be
eligible for low-cost loans if their losses exceed the established
threshold, as evaluated by the USDA's Farm Service Agency.

However, preliminary damage assessment estimates indicate that New
York has experienced one of the worst statewide, multi-crop losses

ever witnessed in the State. Cornell's Lake Erie Regional
Research.Laboratory has estimated crop losses for grapes at 40%-50%,
cherries at 100%, peaches at 90%, and apples at 50%. While the level
of crop loss varies based on the region of the State, elevation, and
the crop's stage of growth, there is no doubt that there is a high
probability that many farmers will face severe economic losses.

As a result, this legislation is vitally necessary to allow the
State's farm operations and their families an opportunity to be
economically viable as they plan for next year's growing season.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
Undetermined at this time.

EFFECTIVE DATE:
Effective immediately.