senate Bill S2909

2013-2014 Legislative Session

Creates an agricultural crop loss personal income tax credit

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to investigations and government operations
Jan 24, 2013 referred to investigations and government operations

Co-Sponsors

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S2909 - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd ยง606, Tax L
Versions Introduced in 2011-2012 Legislative Session:
S7551

S2909 - Bill Texts

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Creates an agricultural crop loss personal income tax credit.

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BILL NUMBER:S2909

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 agricul-
tural 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 Agricul-
tural 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 overpay-
ment 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 notifica-
tion, 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, elevations 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: S7551 of 2012 - referred to investigations and
government operations

FISCAL IMPLICATIONS: Undetermined at this time.

EFFECTIVE DATE: Effective immediately.

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

                                  2909

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 24, 2013
                               ___________

Introduced by Sens. RITCHIE, FARLEY, GALLIVAN, GOLDEN, GRIFFO, GRISANTI,
  LARKIN,  LITTLE,  MARCHIONE,  MAZIARZ,  NOZZOLIO, O'MARA, RANZENHOFER,
  VALESKY, YOUNG -- read twice and ordered printed, and when printed  to
  be  committed  to the Committee on Investigations and Government Oper-
  ations

AN ACT to amend the tax law, in relation to establishing an agricultural
  crop loss personal income tax credit

  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 (vv) to read as follows:
  (VV) AGRICULTURAL CROP LOSS TAX CREDIT. (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 LOSS OR DAMAGE OF
ELIGIBLE CROPS AS A RESULT OF FROST INJURY FOR THE TAXABLE  YEAR  BEGIN-
NING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWELVE AND ENDING ON DECEM-
BER THIRTY-FIRST, TWO THOUSAND TWELVE. THE AMOUNT OF THE CREDIT SHALL BE
EQUAL  TO  THIRTY-FIVE  PERCENT  OF  THE  AVERAGE  VALUE  OF THE UNIT OF
PRODUCTION FOR NEW YORK STATE AS REPORTED BY THE USDA NATIONAL  AGRICUL-
TURAL  STATISTICS SERVICE FOR TWO THOUSAND ELEVEN, MULTIPLIED BY ACREAGE
IN PRODUCTION, INCLUDING NEWLY PLANTED ACREAGE,  FOR  THE  TWO  THOUSAND
TWELVE GROWING SEASON.
  (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR SUCH 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.
  (3)  FOR  THE  PURPOSES  OF  THIS SUBSECTION, THE TERM "ELIGIBLE CROP"
SHALL MEAN: (A) FRUITS, INCLUDING APPLES, PEACHES, GRAPES, CHERRIES  AND
BERRIES,  (B)  VEGETABLES,  INCLUDING  TOMATOES,  SNAP  BEANS,  CABBAGE,
CARROTS, BEETS AND ONIONS, AND (C) POTATOES AND DRY BEANS.
  S 2. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06539-01-3

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