S T A T E   O F   N E W   Y O R K
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                                 7107--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             April 23, 2015
                               ___________

Introduced  by  M.  of A. SKARTADOS, PALMESANO, GIGLIO, WOERNER, FITZPA-
  TRICK -- Multi-Sponsored by --  M.  of  A.  LOPEZ  --  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 establishing a business
  franchise  and  personal  income  tax  credit  for  natural  resources
  improvement projects upon farmlands and forestlands

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

  Section 1. Subdivision 9 of section 208 of the tax law is  amended  by
adding a new paragraph (u) to read as follows:
  (U)  IN THE EVENT THE TAXPAYER CLAIMS THE NATURAL RESOURCE IMPROVEMENT
CREDIT FOR FARMLANDS AND FORESTLANDS ESTABLISHED PURSUANT TO SUBDIVISION
FIFTY-ONE OF SECTION TWO HUNDRED  TEN-B  OF  THIS  ARTICLE,  ENTIRE  NET
INCOME  SHALL  BE INCREASED BY THE AMOUNT OF ANY EXPENDITURES DEFINED IN
INTERNAL REVENUE CODE SECTION 175(C)(1) THAT THE TAXPAYER DEDUCTED  FROM
ITS TOTAL NET INCOME ON ITS FEDERAL TAX RETURN FOR THE TAX YEAR.
  S  2. Section 210-B of the tax law is amended by adding a new subdivi-
sion 51 to read as follows:
  51. NATURAL RESOURCE IMPROVEMENT CREDIT FOR FARMLANDS AND FORESTLANDS.
(A) ALLOWANCE OF CREDIT. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND SEVENTEEN, A TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT
AGAINST  THE  TAX  IMPOSED  BY  THIS  ARTICLE  IN  AN  AMOUNT  EQUAL  TO
TWENTY-FIVE PERCENT OF THE TAXPAYER'S ELIGIBLE EXPENDITURES  DURING  THE
TAX YEAR FOR A NATURAL RESOURCES IMPROVEMENT PROJECT. PROVIDED, HOWEVER,
THAT  THE  CREDIT  GRANTED  FOR ANY NATURAL RESOURCE IMPROVEMENT PROJECT
PURSUANT TO THIS SUBDIVISION SHALL NOT EXCEED FIFTY THOUSAND DOLLARS.
  (B) DEFINITIONS. FOR THE PURPOSES OF THIS SUBDIVISION,  THE  FOLLOWING
DEFINITIONS SHALL APPLY:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06118-03-6
              

A. 7107--A                          2

  (1) "ELIGIBLE EXPENDITURES" SHALL MEAN FEES FOR ARCHITECTURAL, ARCHEO-
LOGICAL,  GEOLOGICAL  AND  ENGINEERING SERVICES; THE COSTS OF DEVELOPING
PLANS AND SPECIFICATIONS; FEES FOR CONSULTANT AND  LEGAL  SERVICES;  AND
ANY  EXPENDITURE  DEFINED  IN  INTERNAL  REVENUE CODE SECTION 175(C)(1),
INCLUDING  EXPENDITURES RELATED TO THE APPLICATION OF LIME AND FERTILIZ-
ER, IMPROVEMENT OF DRAINAGE IN THE CASE OF OPEN  AREAS  THAT  HAVE  BEEN
USED FOR AGRICULTURAL PURPOSES AT ANY TIME IN THE PAST, AND EXPENDITURES
RELATED  TO  THE  DECONSTRUCTION AND REMOVAL OF FENCES, STREAM CROSSINGS
AND NECESSARY RIPARIAN BUFFERS AND FORESTLAND IMPROVEMENTS  AS  REQUIRED
BY THE NATURAL RESOURCES IMPROVEMENT PROJECT.
  (2)  "FARMLAND AND FORESTLAND" SHALL MEAN LAND WHICH, DURING THE TAXA-
BLE YEAR IN WHICH THE CREDIT IS CLAIMED PURSUANT TO THIS SUBDIVISION, IS
ELIGIBLE  FOR   AN   AGRICULTURAL   ASSESSMENT   PURSUANT   TO   ARTICLE
TWENTY-FIVE-AA  OF  THE  AGRICULTURE  AND  MARKETS LAW OR ELIGIBLE FOR A
FOREST ASSESSMENT UNDER SECTION FOUR HUNDRED EIGHTY-A OF THE REAL  PROP-
ERTY TAX LAW.
  (3) "NATURAL RESOURCES IMPROVEMENT PROJECT" SHALL MEAN THE RESTORATION
OF  FARMLAND AND FORESTLAND FOR THE PRODUCTION OF AGRICULTURAL PERENNIAL
CROPS, INCLUDING THOSE CROPS INTENDED FOR ENERGY PRODUCTION PURPOSES, BY
IMPROVING SUCH LAND WHICH HAS NOT BEEN USED IN  AGRICULTURAL  PRODUCTION
FOR  TWO  OR  MORE  YEARS PRIOR TO THE INITIATION OF SUCH RESTORATION OR
FORESTLAND IMPROVEMENTS REQUIRED IN THE MANAGEMENT PLAN.
  (C) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
FOR  ANY  TAXABLE  YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE AMOUNT PRESCRIBED  IN  PARAGRAPH  (D)  OF  SUBDIVISION  ONE  OF
SECTION  TWO  HUNDRED  TEN  OF 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 3. 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) NATURAL RESOURCE             AMOUNT OF CREDIT FOR ELIGIBLE
IMPROVEMENT CREDIT FOR               EXPENDITURES FOR A NATURAL
FARMLANDS AND                        RESOURCES IMPROVEMENT PROJECT
FORESTLANDS UNDER                    UNDER SUBDIVISION FIFTY-ONE
SUBSECTION (EEE)                     OF SECTION TWO HUNDRED TEN-B
  S 4. Section 606 of the tax law is amended by adding a new  subsection
(eee) to read as follows:
  (EEE)  NATURAL  RESOURCE  IMPROVEMENT CREDIT FOR FARMLANDS AND FOREST-
LANDS.  (1) ALLOWANCE OF CREDIT. FOR TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND SEVENTEEN, A TAXPAYER  SHALL  BE  ALLOWED  A
CREDIT  AGAINST  THE  TAX  IMPOSED BY THIS ARTICLE IN AN AMOUNT EQUAL TO
TWENTY-FIVE PERCENT OF THE TAXPAYER'S ELIGIBLE EXPENDITURES  DURING  THE
TAX  YEAR FOR A NATURAL RESOURCE IMPROVEMENT PROJECT. PROVIDED, HOWEVER,
THAT THE CREDIT GRANTED FOR ANY  NATURAL  RESOURCE  IMPROVEMENT  PROJECT
PURSUANT TO THIS SUBSECTION SHALL NOT EXCEED FIFTY THOUSAND DOLLARS.
  (2)  DEFINITIONS.  FOR  THE PURPOSES OF THIS SUBSECTION, THE FOLLOWING
DEFINITIONS SHALL APPLY:
  (A) "ELIGIBLE EXPENDITURES" SHALL MEAN FEES FOR ARCHITECTURAL, ARCHEO-
LOGICAL, GEOLOGICAL AND ENGINEERING SERVICES; THE  COSTS  OF  DEVELOPING
PLANS  AND  SPECIFICATIONS;  FEES FOR CONSULTANT AND LEGAL SERVICES; AND

A. 7107--A                          3

ANY EXPENDITURE DEFINED IN  INTERNAL  REVENUE  CODE  SECTION  175(C)(1),
INCLUDING  EXPENDITURES RELATED TO THE APPLICATION OF LIME AND FERTILIZ-
ER, IMPROVEMENT OF DRAINAGE IN THE CASE OF OPEN  AREAS  THAT  HAVE  BEEN
USED FOR AGRICULTURAL PURPOSES AT ANY TIME IN THE PAST, AND EXPENDITURES
RELATED  TO  THE  DECONSTRUCTION AND REMOVAL OF FENCES, STREAM CROSSINGS
AND NECESSARY RIPARIAN BUFFERS AND FORESTLAND IMPROVEMENTS  AS  REQUIRED
BY THE NATURAL RESOURCE IMPROVEMENT PROJECT.
  (B)  "FARMLAND AND FORESTLAND" SHALL MEAN LAND WHICH, DURING THE TAXA-
BLE YEAR IN WHICH THE CREDIT IS CLAIMED PURSUANT TO THIS SUBSECTION,  IS
ELIGIBLE   FOR   AN   AGRICULTURAL   ASSESSMENT   PURSUANT   TO  ARTICLE
TWENTY-FIVE-AA OF THE AGRICULTURE AND MARKETS  LAW  OR  ELIGIBLE  FOR  A
FOREST  ASSESSMENT UNDER SECTION FOUR HUNDRED EIGHTY-A OF THE REAL PROP-
ERTY TAX LAW.
  (C) "NATURAL RESOURCE IMPROVEMENT PROJECT" SHALL MEAN THE  RESTORATION
OF  FARMLAND AND FORESTLAND FOR THE PRODUCTION OF AGRICULTURAL PERENNIAL
CROPS, INCLUDING THOSE CROPS INTENDED FOR ENERGY PRODUCTION PURPOSES, BY
IMPROVING SUCH LAND WHICH HAS NOT BEEN USED IN  AGRICULTURAL  PRODUCTION
FOR TWO OR MORE YEARS PRIOR TO THE COMPLETION OF SUCH RESTORATION OR HAD
A COMMERCIAL TIMBER HARVEST WITHIN THE PAST FIVE YEARS.
  (3)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION SHALL EXCEED THE  TAXPAYER'S  TAX  FOR  SUCH  YEAR,  THE
TAXPAYER  MAY  RECEIVE  AND THE COMPTROLLER, SUBJECT TO A CERTIFICATE OF
THE COMMISSIONER, SHALL PAY AS AN  OVERPAYMENT,  WITHOUT  INTEREST,  THE
AMOUNT OF SUCH EXCESS.
  S  5.  Paragraph 4 of subsection (b) of section 612 of the tax law, as
amended by chapter 406 of the laws  of  1990,  is  amended  to  read  as
follows:
  (4)  Interest  on  indebtedness  incurred  or continued to purchase or
carry obligations or securities the interest on which is exempt from tax
under this article, to the  extent  deductible  in  determining  federal
adjusted  gross  income;  PROVIDED THAT IN THE EVENT THE TAXPAYER CLAIMS
THE NATURAL RESOURCE IMPROVEMENT CREDIT FOR  FARMLANDS  AND  FORESTLANDS
ESTABLISHED  PURSUANT  TO SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF
THIS ARTICLE, THE AMOUNT OF ANY EXPENDITURES DEFINED IN INTERNAL REVENUE
CODE SECTION 175(C)(1) THAT THE TAXPAYER DEDUCTED FROM HIS OR HER FEDER-
AL GROSS INCOME ON HIS OR HER FEDERAL TAX RETURN FOR THE TAX YEAR.
  S 6. This act shall take effect immediately and shall apply to  resto-
ration projects initiated on or after such date.