S T A T E   O F   N E W   Y O R K
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                                  10584

                          I N  A S S E M B L Y

                              June 7, 2016
                               ___________

Introduced  by  COMMITTEE  ON  RULES  --  (at  request of M. of A. Moya,
  Palmesano) -- read once and referred to  the  Committee  on  Ways  and
  Means

AN  ACT to amend the tax law, in relation to a credit for donations to a
  food bank or other emergency food program by New York state farmers

  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 (n-2) to read as follows:
  (N-2) CREDIT FOR  FARM  DONATIONS  TO  FOOD  BANK  OR  EMERGENCY  FOOD
PROGRAM. (1) GENERAL. IN THE CASE OF A TAXPAYER WHO IS AN ELIGIBLE FARM-
ER,  THERE  SHALL  BE  ALLOWED  A  CREDIT, TO BE COMPUTED AS HEREINAFTER
PROVIDED AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR  TAXABLE  YEARS  ON
AND AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN. THE AMOUNT OF THE CRED-
IT  SHALL BE TWENTY-FIVE PERCENT OF THE WHOLESALE COST OF THE TAXPAYER'S
QUALIFIED DONATIONS, AS DEFINED IN PARAGRAPH THREE OF  THIS  SUBSECTION,
MADE  TO  ANY  FOOD  BANK  OR OTHER PUBLIC, CHARITABLE OR NOT-FOR-PROFIT
EMERGENCY FOOD PROGRAM OPERATING WITHIN THIS STATE, UP TO FIVE  THOUSAND
DOLLARS PER YEAR.
  (2) ELIGIBLE FARMER. FOR PURPOSES OF THIS SUBSECTION, THE TERM "ELIGI-
BLE FARMER" MEANS A NEW YORK STATE RESIDENT TAXPAYER WHOSE FEDERAL GROSS
INCOME  FROM  FARMING  FOR  THE  TAXABLE  YEAR IS AT LEAST TWO-THIRDS OF
EXCESS FEDERAL GROSS INCOME.  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. 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,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15365-02-6
              

A. 10584                            2

SHALL BE INCLUDED AS FEDERAL GROSS INCOME  FROM  FARMING  FOR  OTHERWISE
ELIGIBLE FARMERS.
  (3)  QUALIFIED  DONATION.  FOR  PURPOSES  OF THIS SUBSECTION, THE TERM
"QUALIFIED DONATION" MEANS A DONATION OF ANY FRESH FOOD  ITEM  GROWN  OR
PRODUCED  BY  AN  ELIGIBLE FARMER TO A FOOD BANK OR OTHER EMERGENCY FOOD
PROGRAM OPERATING WITHIN THIS STATE.
  (4) APPLICATION OF CREDIT. THE CREDIT ALLOWED  UNDER  THIS  SUBSECTION
FOR  ANY  TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE MINIMUM TAX FIXED BY THIS ARTICLE.  HOWEVER, IF THE  AMOUNT  OF
CREDIT  ALLOWED  UNDER  THIS SUBSECTION FOR ANY TAXABLE YEAR REDUCES THE
TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS  NOT  DEDUCTIBLE  IN  SUCH
TAXABLE  YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED IN ACCORDANCE WITH  THE  PROVISIONS  OF  SECTION  ONE  THOUSAND
EIGHTY-SIX  OF  THIS  CHAPTER.    PROVIDED,  HOWEVER,  THE PROVISIONS OF
SUBSECTION (C) OF SECTION ONE  THOUSAND  EIGHTY-EIGHT  OF  THIS  CHAPTER
NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
  S  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new  clause  (xliii)  to  read  as
follows:
(XLIII) FARM DONATIONS TO FOOD       AMOUNT OF CREDIT UNDER
BANK OR EMERGENCY FOOD PROGRAM       SUBDIVISION FIFTY-TWO
CREDIT UNDER SUBSECTION (N-2)        OF SECTION TWO HUNDRED
                                     TEN-B
  S  3. Section 210-B of the tax law is amended by adding a new subdivi-
sion 52 to read as follows:
  52. CREDIT FOR FARM DONATIONS TO FOOD BANK OR EMERGENCY FOOD  PROGRAM.
(A)  GENERAL. IN THE CASE OF A TAXPAYER WHO IS AN ELIGIBLE FARMER, THERE
SHALL BE ALLOWED A  CREDIT,  TO  BE  COMPUTED  AS  HEREINAFTER  PROVIDED
AGAINST  THE  TAX IMPOSED BY THIS ARTICLE FOR TAXABLE YEARS BEGINNING ON
AND AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN. THE AMOUNT OF THE CRED-
IT SHALL BE TWENTY-FIVE PERCENT OF THE WHOLESALE COST OF THE  TAXPAYER'S
QUALIFIED  DONATIONS,  AS  DEFINED IN PARAGRAPH (C) OF THIS SUBDIVISION,
MADE TO ANY FOOD BANK OR  OTHER  PUBLIC,  CHARITABLE  OR  NOT-FOR-PROFIT
EMERGENCY  FOOD PROGRAM OPERATING WITHIN THIS STATE, UP TO FIVE THOUSAND
DOLLARS DURING THE TAXABLE YEAR.
  (B) ELIGIBLE FARMER.  FOR  PURPOSES  OF  THIS  SUBDIVISION,  THE  TERM
"ELIGIBLE FARMER" MEANS A NEW YORK STATE RESIDENT TAXPAYER WHOSE FEDERAL
GROSS INCOME FROM FARMING FOR THE TAXABLE YEAR IS AT LEAST TWO-THIRDS OF
EXCESS  FEDERAL  GROSS  INCOME.  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. 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 FOR OTHERWISE
ELIGIBLE FARMERS.
  (C) QUALIFIED DONATION. FOR PURPOSES OF  THIS  SUBDIVISION,  THE  TERM
"QUALIFIED  DONATION"  MEANS  A DONATION OF ANY FRESH FOOD ITEM GROWN OR
PRODUCED BY AN ELIGIBLE FARMER TO A FOOD BANK OR  OTHER  EMERGENCY  FOOD
PROGRAM OPERATING WITHIN THIS STATE.

A. 10584                            3

  (D)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR  TO  LESS
THAN  THE  MINIMUM TAX FIXED BY THIS ARTICLE.  HOWEVER, IF THE AMOUNT OF
CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR  REDUCES  THE
TAX  TO  SUCH  AMOUNT,  ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED  OR
REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
  S 4. The department of agriculture and markets,  in  conjunction  with
the  department  of  taxation  and  finance, shall establish an accepted
wholesale price of the taxpayer's qualified donations and promulgate any
necessary rules and regulations.
  S 5. This act shall take effect on January 1, 2017 and shall apply  to
taxable years beginning on or after such date.