Assembly Bill A10268

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10268
 
                           I N  A S S E M B L Y
 
                              March 27, 2018
                                ___________
 
 Introduced  by M. of A. MAGEE -- read once and referred to the Committee
   on Ways and Means
 
 AN ACT to amend the tax law, in relation to creating a  tax  credit  for
   companies  that  invest in certain dairy equipment and use such equip-
   ment to produce value added products
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  The tax law is amended by adding a new section 44 to read
 as follows:
   § 44. VALUE ADDED DAIRY INVESTMENT TAX CREDIT. (A) GENERAL. A TAXPAYER
 SUBJECT TO TAX UNDER ARTICLE NINE, NINE-A OR TWENTY-TWO OF THIS  CHAPTER
 SHALL  BE  ALLOWED  A CREDIT AGAINST SUCH TAX PURSUANT TO THE PROVISIONS
 REFERENCED IN SUBDIVISION (E)  OF  THIS  SECTION,  HOWEVER,  THE  UNUSED
 PORTION  OF  ANY  TAX  CREDIT  CLAIMED  SHALL NOT BE CARRIED FORWARD AND
 APPLIED IN ANOTHER TAX YEAR. THE TAX CREDIT  ALLOWED  PURSUANT  TO  THIS
 SECTION  SHALL  APPLY  TO  TAXABLE  YEARS  BEGINNING ON OR AFTER JANUARY
 FIRST, TWO THOUSAND EIGHTEEN.
   (B) DEFINITIONS. FOR THE PURPOSES OF THIS SECTION THE FOLLOWING  TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   (1) "DAIRY PRODUCT" SHALL MEAN DAIRY BEVERAGES, CHEESE, YOGURT, FROZEN
 DAIRY  PRODUCTS  OR  ANY  ADDITIONAL  PRODUCT ADDED BY REGULATION BY THE
 COMMISSIONER, IN CONSULTATION WITH THE COMMISSIONER OF  AGRICULTURE  AND
 MARKETS, THAT CONTAINS MILK;
   (2)  "VALUE  ADDED  DAIRY PRODUCT" SHALL MEAN THE INCREASE IN THE FAIR
 MARKET VALUE OF A DAIRY PRODUCT RESULTING FROM THE  PROCESSING  OF  SUCH
 INTO  A  FLAVORED  OR ENHANCED DAIRY PRODUCT PROCESSED WHOLLY WITHIN THE
 STATE;
   (3) "FARM BUSINESS" SHALL MEAN (I) A BUSINESS WITH FARM RELATED INCOME
 OF AT LEAST ONE THOUSAND DOLLARS IN ONE OF THE LAST THREE YEARS; OR (II)
 A NEW BUSINESS WITH FARM RELATED INCOME;
   (4) "ELIGIBLE EXPENSES" SHALL MEAN TOOLS, EQUIPMENT AND  SUPPLIES  FOR
 THE MANUFACTURING AND PACKAGING OF VALUE ADDED DAIRY PRODUCTS; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14985-03-8
              

 A. 10268                            2
 
   (5)  "ELIGIBLE  TAXPAYER"  MEANS A CORPORATION (INCLUDING A NEW YORK S
 CORPORATION), A SOLE PROPRIETORSHIP, A LIMITED LIABILITY  COMPANY  OR  A
 PARTNERSHIP.
   (C) THE AMOUNT OF THE CREDIT SHALL BE FOR ONE HUNDRED PERCENT OF UP TO
 TEN   THOUSAND   DOLLARS  FOR  ELIGIBLE  EXPENSES  ASSOCIATED  WITH  THE
 PRODUCTION OF VALUE ADDED PRODUCTS FOR WHOLESALE OR RETAIL  SALE  WITHIN
 FIVE HUNDRED MILES OF SUCH TAXPAYER'S FARM BUSINESS.
   (D)  (1)  BUSINESSES CLAIMING THE VALUE ADDED DAIRY PRODUCT TAX CREDIT
 SHALL SUBMIT A COMPUTER-GENERATED REPORT WITH TAX RETURNS THAT  CLAIM  A
 TAX CREDIT.
   (2)  SUCH  REPORT  SHALL  INCLUDE (I) THE NAME OF THE PRODUCER AND THE
 PHYSICAL PLACE OF BUSINESS WHERE THE PRODUCTS  ARE  PRODUCED;  (II)  THE
 AMOUNT  PAID  BY  THE ELIGIBLE TAXPAYER FOR ELIGIBLE EXPENSES; AND (III)
 THE PHYSICAL PLACES OF BUSINESS SUCH  VALUE  ADDED  DAIRY  PRODUCTS  ARE
 SOLD.
   (E)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE 9: SECTION 187-Q.
   (2) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 53.
   (3) ARTICLE 22: SECTION 606, SUBSECTIONS (I) AND (III).
   § 2. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 53 to read as follows:
   53.  VALUE  ADDED  DAIRY  INVESTMENT  TAX  CREDIT. A TAXPAYER SHALL BE
 ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN  SECTION  FORTY-FOUR  OF
 THIS CHAPTER AGAINST THE TAX IMPOSED BY THIS ARTICLE. THE CREDIT ALLOWED
 UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE
 FOR SUCH YEAR TO LESS THAN THE FIXED DOLLAR MINIMUM AMOUNT PRESCRIBED IN
 PARAGRAPH  (D)  OF  SUBDIVISION  ONE  OF SECTION TWO HUNDRED TEN OF THIS
 ARTICLE.  THE TAX CREDIT ALLOWED PURSUANT TO THIS SECTION SHALL APPLY TO
 TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOUSAND  EIGH-
 TEEN.
   §  3. Section 606 of the tax law is amended by adding a new subsection
 (iii) to read as follows:
   (III) VALUE ADDED DAIRY INVESTMENT TAX CREDIT.  A  TAXPAYER  SHALL  BE
 ALLOWED  A  CREDIT  TO  BE COMPUTED AS PROVIDED IN SECTION FORTY-FOUR OF
 THIS CHAPTER AGAINST THE TAX IMPOSED BY THIS ARTICLE.   THE  TAX  CREDIT
 ALLOWED  PURSUANT TO THIS SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING
 ON OR AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN.
   § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
 of  the  tax  law  is  amended  by adding a new clause (xliv) to read as
 follows:
 (XLIV) NY CROPS FOR VALUE ADDED      AMOUNT OF CREDIT UNDER
 PRODUCTS TAX CREDIT UNDER            SUBDIVISION FIFTY-THREE OF
 SUBSECTION (III)                     SECTION TWO HUNDRED TEN-B
   § 5. The tax law is amended by adding a new section 187-q to  read  as
 follows:
   §  187-Q.  VALUE  ADDED  DAIRY INVESTMENT TAX CREDIT. (A) ALLOWANCE OF
 CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
 IN SECTION FORTY-FOUR OF THIS CHAPTER AGAINST THE TAX  IMPOSED  BY  THIS
 ARTICLE.
   (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
 THAN  THE  FIXED  DOLLAR  MINIMUM  AMOUNT PRESCRIBED IN PARAGRAPH (D) OF
 SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS  CHAPTER.    THE  TAX
 CREDIT  ALLOWED  PURSUANT  TO  THIS SECTION SHALL APPLY TO TAXABLE YEARS
 BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN.

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   § 6. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.