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

                                 1558--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 12, 2015
                               ___________

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, CERETTO, COOK, DUPREY, GOTTFRIED, LUPARDO, LUPINACCI, McLAUGH-
  LIN, PALMESANO, ROBINSON, SIMANOWITZ, THIELE -- 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 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-B  of the tax law is amended by adding a new
subdivision 51 to read as follows:
  51. 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-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05709-03-6
              

A. 1558--A                          2

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
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
(eee) to read as follows:
  (EEE) 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-B 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, 2017.