Senate Bill S1438B

2017-2018 Legislative Session

Relates to providing a tax credit to farmers who sell or rent their agricultural land to a young farmer

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 23, 2018	print number 1438b
Feb 23, 2018	amend and recommit to investigations and government operations
Jan 03, 2018	referred to investigations and government operations
Jun 07, 2017	print number 1438a
Jun 07, 2017	amend and recommit to finance
Apr 25, 2017	reported and committed to finance
Jan 09, 2017	referred to investigations and government operations

Votes

- Apr 25, 2017 - Investigations And Government Operations Committee Vote
  S1438B
  
  Aye
  
  7
  
  Nay
  
  0
  
  Aye with Reservations
  
  2
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Investigations And Government Operations Committee Vote: Apr 25, 2017
      
      aye (7)
      
      Carlucci
      
      Diaz
      
      Golden
      
      Lanza
      
      Murphy
      
      O'Mara
      
      Phillips
      
      aye wr (2)
      
      Hoylman-Sigal
      
      Squadron

Bill Amendments

Original

B (Active)

co-Sponsors

View additional co-sponsors

2017-S1438 - Details

See Assembly Version of this Bill:: A4388
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§210-B & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S6882, A9290
2015-2016: S1798, A1558

2017-S1438 - Summary

Relates to providing a tax credit to farmers who sell or rent their agricultural land to a young farmer.

2017-S1438 - Sponsor Memo

                                 BILL NUMBER:  S1438

 TITLE OF BILL :  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

 PURPOSE :

To establish a tax credit for farmers who sell or rent their
agricultural land to young farmers.

 SUMMARY OF PROVISIONS :


Sections 1 and 2 amend section 210 and section 606 of the tax law to
create and allow for a credit for current farmers who sell or rent
their agricultural lands to young farmers.


Section 3 provides the effective date.

 JUSTIFICATION :

Current tax law allows for various tax credits. It does not currently
allow a credit for farmers who are considering selling or renting
their agricultural lands to a young farmer. Such programs however, do

exist in other states. New York state tax law provides for various tax
credits already. Allowing a tax credit for current farmers who agree
to sell or rent their agricultural lands to a young farmer is good
public policy. Taking steps to recruit young, new farmers to the
agricultural profession is certainly one area in need of incentives,
and helping to ensure agricultural lands are available for sale or
rent to young or beginning farmers to get them started in the
agricultural profession, is one way to provide that incentive.

Agriculture is the leading industry in New York, yet New York's farm
community is aging and it has become increasingly difficult to attract
young people to farming and to encourage younger generations to
consider farming as a career. The average age of farm operator s in
New York is 59, and is expected to continue to increase unless steps
are taken to reverse this trend. The U.S. Secretary of Agriculture has
set a goal of recruiting 100,000 new farmers across the country to
replace those who are retiring. By enacting a tax credit to encourage
current farmers to sell or rent their land to young farmers, we will
be taking one small step at helping that recruitment effort, and
helping to keep agricultural lands in production, rather than losing
them permanently.

Farming is a difficult business and there are many barriers to keeping
current farm land in the hands of agricultural producers. As the
current crop of farmers continues to age out of the business, we need
to encourage these farmers to sell their land to those considering
entering the profession. It is in the best interest of the state to
ensure that enough producers are recruited and retained in
agricultural production.  Additionally, the recent increase in demand
for quality fresh locally grown foods and beverages highlight the
importance of assisting new farmers to enter the profession.

 LEGISLATIVE HISTORY :

2015-2016: S1798-A
2013-2014: S.6882

 FISCAL IMPLICATIONS :


Undetermined. The bill allows a ten percent tax credit for the sale or
use of agricultural land to a young farmer.

 EFFECTIVE DATE :
Immediately and shall apply to taxable years beginning on and after
January 1, 2018.

2017-S1438 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1438
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 9, 2017
                                ___________
 
 Introduced  by  Sens.  RITCHIE,  BONACIC, DeFRANCISCO, GALLIVAN, GRIFFO,
   LARKIN, MARCHIONE, O'MARA, ORTT, RANZENHOFER, SEWARD,  YOUNG  --  read
   twice  and  ordered  printed,  and when printed to be committed to the
   Committee on Investigations and Government Operations
 
 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 52 to read as follows:
   52.  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-
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD07443-01-7

 S. 1438                             2
 
 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.
   §  2. Section 606 of the tax law is amended by adding a new subsection
 (ccc) to read as follows:
   (CCC) 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.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2018.

co-Sponsors

View additional co-sponsors

2017-S1438A - Details

See Assembly Version of this Bill:: A4388
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§210-B & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S6882, A9290
2015-2016: S1798, A1558

2017-S1438A - Summary

Relates to providing a tax credit to farmers who sell or rent their agricultural land to a young farmer.

2017-S1438A - Sponsor Memo

                                 BILL NUMBER:  S1438A

 TITLE OF BILL :  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

 PURPOSE :

To establish a tax credit for farmers who sell or rent their
agricultural land to young farmers.

 SUMMARY OF PROVISIONS :

Sections 1 and 2 amend section 210 and section 606 of the tax law to
create and allow for a credit for current farmers who sell or rent
their agricultural lands to young farmers.  Section 3 provides the
effective date.

 JUSTIFICATION :

Current tax law allows for various tax credits. It does not currently
allow a credit for farmers who are considering selling or renting
their agricultural lands to a young farmer. Such programs however, do
exist in other states. New York state tax law provides for various tax
credits already. Allowing a tax credit for current farmers who agree
to sell or rent their agricultural lands to a young farmer is good

public policy. Taking steps to recruit young, new farmers to the
agricultural profession is certainly one area in need of incentives,
and helping to ensure agricultural lands are available for sale or
rent to young or beginning farmers to get them started in the
agricultural profession, is one way to provide that incentive.

Agriculture is the leading industry in New York, yet New York's farm
community is aging and it has become increasingly difficult to attract
young people to farming and to encourage younger generations to
consider fanning as a career. The average age of farm operators in New
York is 59, and is expected to continue to increase unless steps are
taken to reverse this trend. The U.S. Secretary of Agriculture has set
a goal of recruiting 100,000 new farmers across the country to replace
those who are retiring. By enacting a tax credit to encourage current
farmers to sell or rent their land to young farmers, we will be taking
one small step at helping that recruitment effort, and helping to keep
agricultural lands in production, rather than losing them permanently.

Farming is a difficult business and there are many barriers to keeping
current farm land in the hands of agricultural producers. As the
current crop of farmers continues to age out of the business, we need
to encourage these farmers to sell their land to those considering
entering the profession. It is in the best interest of the state to
ensure that enough producers are recruited and retained in
agricultural production. Additionally, the recent increase in demand
for quality fresh locally grown foods and beverages highlight the
importance of assisting new farmers to enter the profession.

 LEGISLATIVE HISTORY :

2015-2016: S1798-A
2013-2014: S.6882

 FISCAL IMPLICATIONS :

Undetermined. The bill allows a ten percent tax credit for the sale or
use of agricultural land to a young farmer.

 EFFECTIVE DATE :
Immediately and shall apply to taxable years beginning on and after
January 1, 2018.

2017-S1438A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1438--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 9, 2017
                                ___________
 
 Introduced  by  Sens.  RITCHIE,  BONACIC, DeFRANCISCO, GALLIVAN, GRIFFO,
   LARKIN, MARCHIONE, O'MARA, ORTT, RANZENHOFER, SEWARD,  YOUNG  --  read
   twice  and  ordered  printed,  and when printed to be committed to the
   Committee on Investigations  and  Government  Operations  --  reported
   favorably  from  said  committee  and  committed  to  the Committee on
   Finance -- 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 53 to read as follows:
   53. 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; PROVIDED,
 HOWEVER, THAT SUCH PRICE SHALL NOT EXCEED THE FAIR MARKET VALUE  OF  THE
 REAL  PROPERTY. A TAXPAYER WHO SELLS OR RENTS THEIR AGRICULTURAL LAND TO
 A RELATIVE SHALL BE ELIGIBLE FOR THE CREDIT ESTABLISHED IN THIS SECTION.
   (B) FOR PURPOSES OF THIS SUBDIVISION,  "YOUNG  FARMER"  SHALL  MEAN  A
 FARMER  WHO  IS  AT LEAST EIGHTEEN YEARS OLD AND WHO HAS NOT PRODUCED AN
 AGRICULTURAL PRODUCT FOR MORE THAN TEN CONSECUTIVE YEARS, WHERE AGRICUL-
 TURAL 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, POULTRY AND POULTRY PRODUCTS, FISH AND
 FISH  PRODUCTS,  GRAIN AND GRAIN PRODUCTS, HONEY, NUTS, PRESERVES, MAPLE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD07443-02-7

 S. 1438--A                          2
 
 SAP PRODUCTS, APPLE CIDER, FRUIT JUICE, HORTICULTURAL  SPECIALTIES,  AND
 CHRISTMAS TREES AND WHO WILL MATERIALLY AND SUBSTANTIALLY PARTICIPATE IN
 THE PRODUCTION OF AN AGRICULTURAL 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.
   §  2. Section 606 of the tax law is amended by adding a new subsection
 (ccc) to read as follows:
   (CCC) 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.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2018.

co-Sponsors

View additional co-sponsors

2017-S1438B (ACTIVE) - Details

See Assembly Version of this Bill:: A4388
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§210-B & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S6882, A9290
2015-2016: S1798, A1558

2017-S1438B (ACTIVE) - Summary

Relates to providing a tax credit to farmers who sell or rent their agricultural land to a young farmer.

2017-S1438B (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S1438B

SPONSOR: RITCHIE
 
TITLE OF BILL:  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

 
PURPOSE:

To establish a tax credit for farmers who sell or rent their agricul-
tural land to young farmers.

 
SUMMARY OF PROVISIONS:

Sections 1 and 2 amend section 210 and section 606 of the tax law to
create and allow for a credit for current farmers who sell or rent their
agricultural lands to young farmers.

Section 3 provides the effective date.

JUSTIFICATION:

Current tax law allows for various tax credits. It does not currently
allow a credit for farmers who are considering selling or renting their
agricultural lands to a young farmer. Such programs however, do exist in
other states. New York state tax law provides for various tax credits
already. Allowing a tax credit for current farmers who agree to sell or
rent their agricultural lands to a young farmer is good public policy.
Taking steps to recruit young, new farmers to the agricultural profes-
sion is certainly one area in need of incentives, and helping to ensure
agricultural lands are available for sale or rent to young or beginning
farmers to get them started in the agricultural profession, is one way
to provide that incentive.

Agriculture is the leading industry in New York, yet New York's farm
community is aging and it has become increasingly difficult to attract
young people to farming and to encourage younger generations to consider
farming as a career. The average age of farm operators in New York is
59, and is expected to continue to increase unless steps are taken to
reverse this trend. The U.S. Secretary of Agriculture has set a goal of
recruiting 100,000 new farmers across the country to replace those who
are retiring. By enacting a tax credit to encourage current farmers to
sell or rent their land to young farmers, we will be taking one small
step at helping that recruitment effort, and helping to keep agricul-
tural lands in production, rather than losing them permanently.

Farming is a difficult business and there are many barriers to keeping
current farm land in the hands of agricultural producers. As the current
crop of farmers continues to age out of the business, we need to encour-
age these farmers to sell their land to those considering entering the
profession. It is in the best interest of the state to ensure that
enough producers are recruited and retained in agricultural production.
Additionally, the recent increase in demand for quality fresh locally
grown foods and beverages highlight the importance of assisting new
farmers to enter the profession.

 
LEGISLATIVE HISTORY:

2015-2016: S1798-A
2013-2014: S.6882

 
FISCAL IMPLICATIONS:

Undetermined. The bill allows a ten percent tax credit for the sale or
use of agricultural land to a young farmer.

 
EFFECTIVE DATE:
Immediately and shall apply to taxable years beginning on and after
January 1, 2019.

2017-S1438B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1438--B
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 9, 2017
                                ___________
 
 Introduced  by  Sens.  RITCHIE,  AKSHAR, BONACIC, DeFRANCISCO, GALLIVAN,
   GRIFFO, LARKIN, MARCHIONE, O'MARA, ORTT, RANZENHOFER, SEWARD, YOUNG --
   read twice and ordered printed, and when printed to  be  committed  to
   the  Committee on Investigations and Government Operations -- reported
   favorably from said  committee  and  committed  to  the  Committee  on
   Finance  --  committee  discharged, bill amended, ordered reprinted as
   amended and recommitted  to  said  committee  --  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 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 53 to read as follows:
   53. 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; PROVIDED,
 HOWEVER, THAT SUCH PRICE SHALL NOT EXCEED THE FAIR MARKET VALUE  OF  THE
 REAL  PROPERTY. A TAXPAYER WHO SELLS OR RENTS THEIR AGRICULTURAL LAND TO
 A RELATIVE SHALL BE ELIGIBLE FOR THE CREDIT ESTABLISHED IN THIS SECTION.
   (B) FOR PURPOSES OF THIS SUBDIVISION,  "YOUNG  FARMER"  SHALL  MEAN  A
 FARMER  WHO  IS  AT LEAST EIGHTEEN YEARS OLD AND WHO HAS NOT PRODUCED AN
 AGRICULTURAL PRODUCT FOR MORE THAN TEN CONSECUTIVE YEARS, WHERE AGRICUL-
 TURAL PRODUCT MEANS ANY AGRICULTURAL OR AQUACULTURAL PRODUCT OF THE SOIL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD07443-04-8

 S. 1438--B                          2
 
 OR WATER, INCLUDING BUT NOT LIMITED TO FRUITS, VEGETABLES,  EGGS,  DAIRY
 PRODUCTS, MEAT AND MEAT PRODUCTS, POULTRY 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 MATERIALLY AND SUBSTANTIALLY PARTICIPATE IN
 THE PRODUCTION OF AN AGRICULTURAL 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.
   § 2. Section 606 of the tax law is amended by adding a new  subsection
 (ccc) to read as follows:
   (CCC)  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.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2019.

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Senate Bill S1438B

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