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

                                 1798--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 14, 2015
                               ___________

Introduced by Sens. RITCHIE, BONACIC, CROCI, DeFRANCISCO, FARLEY, GALLI-
  VAN,  GRIFFO,  LARKIN,  LAVALLE,  LITTLE, MARCHIONE, NOZZOLIO, O'MARA,
  ORTT, PANEPINTO, RANZENHOFER, ROBACH, SEWARD, VALESKY, YOUNG  --  read
  twice  and  ordered  printed,  and when printed to be committed to the
  Committee on Investigations and Government Operations  --  recommitted
  to  the  Committee  on  Investigations  and  Government  Operations in
  accordance with Senate Rule 6, sec. 8 --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee

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.
                                                           LBD05709-02-6
              

S. 1798--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.