Assembly Bill A9290

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

                                  9290

                          I N  A S S E M B L Y

                              April 8, 2014
                               ___________

Introduced  by  M.  of  A.  MAGEE, CROUCH, FINCH, GUNTHER, HAWLEY, OTIS,
  ROSENTHAL, RUSSELL,  SKOUFIS,  STIRPE,  BARCLAY,  JAFFEE,  MAGNARELLI,
  SEPULVEDA,  PEOPLES-STOKES,  TITONE  -- Multi-Sponsored by -- M. of A.
  BUTLER, CAMARA, CERETTO, COOK, DUPREY, GOTTFRIED, LUPARDO,  LUPINACCI,
  McLAUGHLIN,  ROBINSON, SIMANOWITZ, THIELE, WEISENBERG -- read once and
  referred to the Committee on Ways and Means

AN ACT to amend the tax law, in relation to providing a  tax  credit  to
  farmers who sell or rent their agricultural land to a young farmer

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

  Section 1. Section 210 of the tax law  is  amended  by  adding  a  new
subdivision 49 to read as follows:
  49.  CREDIT  FOR FARMERS WHO SELL OR RENT THEIR AGRICULTURAL LAND TO A
YOUNG FARMER.  (A) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS  AN  AGRICUL-
TURAL  BUSINESS  PRINCIPALLY ENGAGED IN FARMING, AS SUCH TERM IS DEFINED
IN PARAGRAPH NINETEEN OF SUBDIVISION (B) OF SECTION ELEVEN  HUNDRED  ONE
OF  THIS  CHAPTER  SHALL  BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY
THIS ARTICLE FOR THE SALE OR RENT OF THEIR AGRICULTURAL LANDS TO A YOUNG
FARMER, AS DEFINED IN THIS SECTION. SUCH CREDIT SHALL BE TEN PERCENT  OF
THE PURCHASE PRICE OR RENTAL AMOUNT OF THE AGRICULTURAL LANDS.
  (B)  FOR  PURPOSES  OF  THIS  SUBDIVISION, "YOUNG FARMER" SHALL MEAN A
FARMER WHO HAS NOT PRODUCED AN AGRICULTURAL PRODUCT FOR  MORE  THAN  TEN
CONSECUTIVE  YEARS, WHERE AGRICULTURAL PRODUCT MEANS ANY AGRICULTURAL OR
AQUACULTURAL PRODUCT OF THE SOIL OR WATER, INCLUDING BUT NOT LIMITED  TO
FRUITS,  VEGETABLES, EGGS, DAIRY PRODUCTS, MEAT AND MEAT PRODUCTS, POUL-
TRY AND POULTRY PRODUCTS,  FISH  AND  FISH  PRODUCTS,  GRAIN  AND  GRAIN
PRODUCTS, HONEY, NUTS, PRESERVES, MAPLE SAP PRODUCTS, APPLE CIDER, FRUIT
JUICE, HORTICULTURAL SPECIALTIES, AND CHRISTMAS TREES AND WHO WILL MATE-
RIALLY  AND  SUBSTANTIALLY  PARTICIPATE IN THE PRODUCTION OF AN AGRICUL-
TURAL PROJECT.
  (C) PRIOR TO SALE, THE SELLER SHALL CONVEY TO THE DEPARTMENT OF  AGRI-
CULTURE  AND  MARKETS, AN EASEMENT, THE TERMS OF WHICH LIMIT DEVELOPMENT
OF THE LAND TO AGRICULTURAL BUSINESS, PRINCIPALLY FARMING, AS SUCH  TERM
IS  DEFINED  IN  PARAGRAPH NINETEEN OF SUBDIVISION (B) OF SECTION ELEVEN

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

                                                           LBD13527-07-4

A. 9290                             2

HUNDRED ONE OF THIS CHAPTER. THE EASEMENT SHALL EXPIRE NOT LESS THAN TEN
YEARS FROM THE DATE OF SALE.
  S  2. Section 606 of the tax law is amended by adding a new subsection
(ccc) to read as follows:
  (CCC) CREDIT FOR THE SALE OR RENT OF  AGRICULTURAL  LAND  TO  A  YOUNG
FARMER.  (1)  ALLOWANCE OF CREDIT. A TAXPAYER WHOSE FEDERAL GROSS INCOME
FROM FARMING FOR THE TAXABLE YEAR  IS  AT  LEAST  TWO-THIRDS  OF  EXCESS
FEDERAL  GROSS  INCOME SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED
BY THIS ARTICLE FOR THE SALE OR RENT OF AGRICULTURAL LAND  OR  EQUIPMENT
TO  A  YOUNG FARMER, AS DEFINED BY SECTION TWO HUNDRED TEN OF THIS CHAP-
TER. SUCH CREDIT SHALL BE TEN PERCENT OF THE PURCHASE  PRICE  OF  RENTAL
AMOUNT  OF  THE  AGRICULTURAL LAND, AND SHALL BE ALLOWED NOTWITHSTANDING
SUBSECTION (KK) OF THIS SECTION.
  (2) DEFINITIONS. FOR PURPOSES OF THIS SUBSECTION, THE FOLLOWING  DEFI-
NITIONS SHALL APPLY:
  (A)  "EXCESS  FEDERAL  GROSS INCOME" MEANS THE AMOUNT OF FEDERAL GROSS
INCOME FROM ALL SOURCES FOR THE TAXABLE YEAR REDUCED BY THE SUM, NOT  TO
EXCEED THIRTY THOUSAND DOLLARS, OF THOSE ITEMS INCLUDED IN FEDERAL GROSS
INCOME WHICH CONSIST OF:
  (I) EARNED INCOME,
  (II) PENSION PAYMENTS, INCLUDING SOCIAL SECURITY PAYMENTS,
  (III) INTEREST, AND
  (IV) DIVIDENDS.
  (B)  FOR  PURPOSES  OF  THIS PARAGRAPH, THE TERM "EARNED INCOME" SHALL
MEAN WAGES, SALARIES, TIPS AND OTHER EMPLOYEE  COMPENSATION,  AND  THOSE
ITEMS  OF  GROSS  INCOME  WHICH ARE INCLUDIBLE IN THE COMPUTATION OF NET
EARNINGS FROM SELF-EMPLOYMENT.  FOR  THE  PURPOSES  OF  THIS  PARAGRAPH,
PAYMENTS  FROM  THE STATE'S FARMLAND PROTECTION PROGRAM, ADMINISTERED BY
THE DEPARTMENT OF AGRICULTURE AND MARKETS, SHALL BE INCLUDED AS  FEDERAL
GROSS INCOME FROM FARMING.
  (3)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED 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 ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO  INTEREST
SHALL BE PAID THEREON.
  S 3. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2015.