S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7388--A
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 25, 2017
                                ___________
 
 Introduced  by  M. of A. MAGEE, BLANKENBUSH -- 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 creating a meat processing
   facility development tax credit
 
   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. MEAT PROCESSING FACILITY DEVELOPMENT TAX CREDIT.  (A)  ALLOWANCE
 OF CREDIT. A TAXPAYER, WHO IS SUBJECT TO TAX UNDER ARTICLE NINE, NINE-A,
 OR  TWENTY-TWO  OF  THIS  CHAPTER  SHALL  BE ALLOWED A REFUNDABLE CREDIT
 AGAINST SUCH TAX TO BE COMPUTED AS PROVIDED IN THIS SECTION, FOR THE TAX
 IMPOSED BY THIS ARTICLE FOR TAXABLE YEARS AFTER JANUARY FIRST, TWO THOU-
 SAND NINETEEN.
   (B) VALUE OF CREDIT. THE AMOUNT OF SUCH CREDIT SHALL BE NO  MORE  THAN
 THIRTY  PERCENT  OF  THE  FUNDS EXPENDED AS PART OF AN ELIGIBLE STANDARD
 ESTABLISHED UNDER SUBDIVISION (C) OF THIS SECTION,  NOT  TO  EXCEED  TWO
 HUNDRED FIFTY THOUSAND DOLLARS PER TAXABLE YEAR.
   (C)  ELIGIBLE STANDARD. TAXPAYERS THAT WISH TO CLAIM THIS CREDIT SHALL
 DEMONSTRATE THAT THEIR EXPENSES WERE INCURRED AS PART OF  AN  EFFORT  TO
 MEET  ONE  OF  THE  FOLLOWING  STANDARDS:  ADDING SMOKED MEAT OR SAUSAGE
 PRODUCTION  TO  THEIR  AVAILABLE  PROTOCOLS;  IMPLEMENTING  THE  "ANIMAL
 WELFARE  APPROVED"  PRODUCTION  STANDARD  OR STANDARDS RELEVANT TO THEIR
 FACILITY; IMPLEMENTING THE "CERTIFIED HUMANE" CERTIFICATION  OFFERED  BY
 HUMANE FARM ANIMAL CARE; WERE EXPENDED TO BRING A FACILITY IN TO COMPLI-
 ANCE  WITH  STANDARDS PROMULGATED BY THE USDA FOOD SAFETY AND INSPECTION
 SERVICE; OR WERE EXPENDED WHILE EXPANDING A USDA INSPECTED FACILITY WITH
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10258-04-8
              

 A. 7388--A                          2
 
 A THROUGHPUT OF NO MORE THAN TEN BOVINE, THIRTY NON-BOVINE LIVESTOCK, OR
 SIXTY POULTRY PER DAY.
   (D)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SECTION FOR
 ANY TAXABLE YEAR SHALL 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 SECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH
 AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN  SUCH  TAXABLE  YEAR
 SHALL  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. EXCEPT AS PROVIDED IN SUBSECTION (C) OF SECTION ONE THOU-
 SAND EIGHTY-EIGHT OF THIS CHAPTER, NO INTEREST SHALL BE PAID THEREON.
   § 2. The tax law is amended by adding a new section 187-q to  read  as
 follows:
   §  187-Q.  MEAT PROCESSING FACILITY DEVELOPMENT TAX CREDIT. (A) ALLOW-
 ANCE OF CREDIT. A TAXPAYER, WHO IS SUBJECT TO TAX  UNDER  ARTICLE  NINE,
 NINE-A,  OR  TWENTY-TWO  OF  THIS  CHAPTER SHALL BE ALLOWED A REFUNDABLE
 CREDIT AGAINST SUCH TAX TO BE COMPUTED AS PROVIDED IN THIS SECTION,  FOR
 THE  TAX  IMPOSED BY THIS ARTICLE FOR TAXABLE YEARS AFTER JANUARY FIRST,
 TWO THOUSAND NINETEEN.
   (B) VALUE OF CREDIT. THE AMOUNT OF SUCH CREDIT SHALL BE NO  MORE  THAN
 THIRTY  PERCENT  OF  THE  FUNDS EXPENDED AS PART OF AN ELIGIBLE STANDARD
 ESTABLISHED UNDER SUBDIVISION (C) OF THIS SECTION,  NOT  TO  EXCEED  TWO
 HUNDRED FIFTY THOUSAND DOLLARS PER TAXABLE YEAR.
   (C)  ELIGIBLE STANDARD. TAXPAYERS THAT WISH TO CLAIM THIS CREDIT SHALL
 DEMONSTRATE THAT THEIR EXPENSES WERE INCURRED AS PART OF  AN  EFFORT  TO
 MEET  ONE  OF  THE  FOLLOWING  STANDARDS:  ADDING SMOKED MEAT OR SAUSAGE
 PRODUCTION  TO  THEIR  AVAILABLE  PROTOCOLS;  IMPLEMENTING  THE  "ANIMAL
 WELFARE  APPROVED"  PRODUCTION  STANDARD  OR STANDARDS RELEVANT TO THEIR
 FACILITY; IMPLEMENTING THE "CERTIFIED HUMANE" CERTIFICATION  OFFERED  BY
 HUMANE FARM ANIMAL CARE; WERE EXPENDED TO BRING A FACILITY IN TO COMPLI-
 ANCE  WITH  STANDARDS PROMULGATED BY THE USDA FOOD SAFETY AND INSPECTION
 SERVICE; OR WERE EXPENDED WHILE EXPANDING A USDA INSPECTED FACILITY WITH
 A THROUGHPUT OF NO MORE THAN TEN BOVINE, THIRTY NON-BOVINE LIVESTOCK, OR
 SIXTY POULTRY PER DAY.
   (D) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS  SECTION  FOR
 ANY TAXABLE YEAR SHALL 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 SECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO  SUCH
 AMOUNT,  ANY  AMOUNT  OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR
 SHALL 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. EXCEPT AS PROVIDED IN SUBSECTION (C) OF SECTION ONE  THOU-
 SAND EIGHTY-EIGHT OF THIS CHAPTER, NO INTEREST SHALL BE PAID THEREON.
   §  3. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 53 to read as follows:
   53. MEAT PROCESSING FACILITY DEVELOPMENT TAX CREDIT. (A) ALLOWANCE  OF
 CREDIT. A TAXPAYER, WHO IS SUBJECT TO TAX UNDER ARTICLE NINE, NINE-A, OR
 TWENTY-TWO  OF THIS CHAPTER SHALL BE ALLOWED A REFUNDABLE CREDIT AGAINST
 SUCH TAX TO BE COMPUTED AS PROVIDED IN THIS  SUBDIVISION,  FOR  THE  TAX
 IMPOSED BY THIS ARTICLE FOR TAXABLE YEARS AFTER JANUARY FIRST, TWO THOU-
 SAND NINETEEN.
   (B)  VALUE  OF CREDIT. THE AMOUNT OF SUCH CREDIT SHALL BE NO MORE THAN
 THIRTY PERCENT OF THE FUNDS EXPENDED AS PART  OF  AN  ELIGIBLE  STANDARD
 ESTABLISHED  UNDER  SUBDIVISION  (C)  OF THIS SECTION, NOT TO EXCEED TWO
 HUNDRED FIFTY THOUSAND DOLLARS PER TAXABLE YEAR.

 A. 7388--A                          3
 
   (C) ELIGIBLE STANDARD. TAXPAYERS THAT WISH TO CLAIM THIS CREDIT  SHALL
 DEMONSTRATE  THAT  THEIR  EXPENSES WERE INCURRED AS PART OF AN EFFORT TO
 MEET ONE OF THE FOLLOWING  STANDARDS:  ADDING  SMOKED  MEAT  OR  SAUSAGE
 PRODUCTION  TO  THEIR  AVAILABLE  PROTOCOLS;  IMPLEMENTING  THE  "ANIMAL
 WELFARE  APPROVED"  PRODUCTION  STANDARD  OR STANDARDS RELEVANT TO THEIR
 FACILITY; IMPLEMENTING THE "CERTIFIED HUMANE" CERTIFICATION  OFFERED  BY
 HUMANE FARM ANIMAL CARE; WERE EXPENDED TO BRING A FACILITY IN TO COMPLI-
 ANCE  WITH  STANDARDS PROMULGATED BY THE USDA FOOD SAFETY AND INSPECTION
 SERVICE; OR WERE EXPENDED WHILE EXPANDING A USDA INSPECTED FACILITY WITH
 A THROUGHPUT OF NO MORE THAN TEN BOVINE, THIRTY NON-BOVINE LIVESTOCK, OR
 SIXTY POULTRY PER DAY.
   (D) 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 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 SHALL 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. EXCEPT AS  PROVIDED  IN  SUBSECTION  (C)  OF
 SECTION  ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER, NO INTEREST SHALL BE
 PAID THEREON.
   § 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) MEAT PROCESSING FACILITY      AMOUNT OF CREDIT UNDER
 DEVELOPMENT TAX CREDIT UNDER         SUBDIVISION FIFTY-THREE OF
 SECTION FORTY-FOUR OF THIS           SECTION TWO HUNDRED TEN-B
 CHAPTER
   § 5. This act shall take effect January 1, 2019, and  shall  apply  to
 taxable  years beginning on or after such date, and shall expire January
 1, 2025 when upon such date the provisions of this act shall  be  deemed
 repealed;  provided,  however,  that effective immediately the addition,
 amendment and/or repeal of any rule or regulation by the  department  of
 agriculture  and markets, in conjunction with the department of taxation
 and finance that is necessary for the implementation of this act on  its
 effective date are authorized to be made and completed on or before such
 effective date.