NY State Senate Bill 2017-S7217

Senate Bill S7217

2017-2018 Legislative Session

Relates to creating a tax credit for companies that purchase New York grown crops and use such crops in value added products

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Archive: Last Bill Status - In Senate Committee Rules 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

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 20, 2018	recommitted to rules
Jun 06, 2018	ordered to third reading cal.1569
Jun 05, 2018	committee discharged and committed to rules
Jan 04, 2018	referred to investigations and government operations

Votes

- Jun 5, 2018 - Rules Committee Vote
  S7217
  
  23
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 5, 2018
      
      aye (23)
      
      Bonacic
      
      Breslin
      
      Dilan
      
      Flanagan
      
      Gianaris
      
      Griffo
      
      Hannon
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Marcellino
      
      Montgomery
      
      Parker
      
      Ranzenhofer
      
      Rivera
      
      Robach
      
      Savino
      
      Seward
      
      Stewart-Cousins
      
      Valesky
      
      aye wr (2)
      
      DeFrancisco
      
      Little

co-Sponsors

2017-S7217 (ACTIVE) - Details

Current Committee:: Senate Rules
Law Section:: Tax Law
Laws Affected:: Add §§44 & 187-t, amd §§210-B & 606, Tax L

2017-S7217 (ACTIVE) - Summary

Creates a tax credit for companies that purchase New York-grown crops and use such crops in their value added products; such credit increases with increased net sales.

2017-S7217 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7217

SPONSOR: RITCHIE
 
TITLE OF BILL:

An act to amend the tax law, in relation to creating a tax credit for
companies that purchase New York-grown crops and use such crops in value
added products

 
PURPOSE:

This bill provides tax credits for producers who base a percentage of
sales on products processed from New York-grown crops.

 
SUMMARY OF PROVISIONS:

Section 1 amends the tax law by adding a section, for taxpayers subject
to article nine, nine-A, or twenty-two of the tax law, creating tax
credits for percentages of overall sales that are based on products
generated from or using New York-grown crops. This section defines terms
applicable to the tax credit, establishes reporting requirements for

businesses claiming the tax credit, and limits tax credit to the taxable
year in which the tax credit is claimed.

Section 2 amends § 210-B of the tax law by adding a subdivision defining
when a taxpayer shall qualify for the New York crops value added
products tax credit. This section identifies the fixed dollar amount to
which the New York crop value added products tax credit can reduce tax
due for the year. This section declares that any of the New York crop
value added products tax credit that is not deductible to lower the tax
due beyond the identified amount will be treated as an overpayment of
tax to be credited or refunded.

Section 3 amends § 606 of the tax law by adding subsection (iii) allow-
ing New York crops value added products tax credit to be calculated
against personal income tax. Where credits exceed the taxpayer's tax for
the taxable year, the excess credit will be treated as an overpayment
and result in a refund to the taxpayer for the excess credit.

Section 4 amends § 606(i)(B) by adding clause (xliv) defining the New
York crop value added products tax credit as the amount of credit calcu-
lated pursuant to the new subsection under § 210-B of the tax law added
by § 2 of this act.

Section 5 amends the corporation tax law by adding a section identifying
the fixed dollar amount to which the New York crop value added products
tax credit can reduce tax due for the year. This section declares that
any of the New York crop value added products tax credit that is not
deductible to lower the tax due beyond the identified amount will be
treated as an overpayment of tax to be credited or refunded.

Section 6 is the effective date and applies the terms of this act to
taxable years beginning on or after January 1, 2019.

 
JUSTIFICATION:

Agriculture represents New York State's leading industry. Each year, New
York farmers face greater hardship through competitive pressures from
out-of-state and international market competition. Many farmers rely on
sales of their crops to processors that use crops to create a value
added product. New Yorkers are increasingly concerned with where compa-
nies source ingredients for their products and what ingredients are used
in processing. One fast-growing industry affected by these pressures is
the hops, malting barley, and wheat industry. By using New York-grown
crops, companies have the opportunity to add value to their product,
while also benefitting New York farmers.

This tax credit incentivizes companies operating in New York State to
purchase New York-grown crops through scaling tax credits based on the
percentage of overall sales the company makes attributed to the products
sold which the company processed with New York-grown crops.  Eligible
crops include various fruits, vegetables, and field crops including,
among others, wheat, barley, and hops.

Due to competitive pressures, craft beer producers often source brewing
ingredients from outside the state. With New York State's craft beer
industry rapidly growing, this bill capitalizes on the economic opportu-
nity for New York wheat, hops, and barley growers, among others, by
encouraging New York craft beer producers to source more of their brew-
ing ingredients within the state. Providing this incentive to craft beer
producers will keep industry dollars in the state economy while encour-
aging further growth of these high-demand crops.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on or after January 1, 2019.

2017-S7217 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7217
 
                             I N  S E N A T E
 
                              January 4, 2018
                                ___________
 
 Introduced  by  Sen. RITCHIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the tax law, in relation to creating a  tax  credit  for
   companies  that  purchase  New  York-grown crops and use such crops in
   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. NY CROPS FOR VALUE ADDED PRODUCTS 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 NINETEEN.
   (B)  DEFINITIONS. FOR THE PURPOSES OF THIS SECTION THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   (1) "CROP" SHALL MEAN (I) FRUITS, INCLUDING APPLES,  PEACHES,  GRAPES,
 CHERRIES  AND  BERRIES, (II) VEGETABLES, INCLUDING TOMATOES, SNAP BEANS,
 CABBAGE, CARROTS, BEETS AND ONIONS, AND (III) POTATOES AND DRY BEANS;
   (2) "VALUE ADDED PRODUCT" SHALL MEAN THE INCREASE IN THE  FAIR  MARKET
 VALUE OF A PRODUCT RESULTING FROM THE PROCESSING OF SUCH PRODUCT;
   (3)  "NET SALES" SHALL MEAN THE TOTAL SALES OF THE BUSINESS SUBJECT TO
 TAX.
   (4) "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  PROSCRIBED  ACCORDING  TO  THE
 FOLLOWING SCHEDULE:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13926-03-7

 S. 7217                             2
 
   (1) FOR TWENTY PERCENT OF NET SALES ATTRIBUTED TO VALUE ADDED PRODUCTS
 THAT  USED  A NEW YORK-GROWN CROP, THE CREDIT SHALL BE ONE THOUSAND FIVE
 HUNDRED DOLLARS.
   (2)  FOR FORTY PERCENT OF NET SALES ATTRIBUTED TO VALUE ADDED PRODUCTS
 THAT USED A NEW YORK-GROWN CROP, THE  CREDIT  SHALL  BE  THREE  THOUSAND
 DOLLARS.
   (3)  FOR SIXTY PERCENT OF NET SALES ATTRIBUTED TO VALUE ADDED PRODUCTS
 THAT USED A NEW YORK-GROWN  CROP,  THE  CREDIT  SHALL  BE  SIX  THOUSAND
 DOLLARS.
   (4) FOR EIGHTY PERCENT OF NET SALES ATTRIBUTED TO VALUE ADDED PRODUCTS
 THAT  USED  A  NEW  YORK-GROWN CROP, THE CREDIT SHALL BE TWELVE THOUSAND
 DOLLARS.
   (5) FOR ONE HUNDRED PERCENT OF NET SALES  ATTRIBUTED  TO  VALUE  ADDED
 PRODUCTS  THAT  USED  A NEW YORK-GROWN CROP, THE CREDIT SHALL BE TWENTY-
 FIVE THOUSAND DOLLARS.
   (D) (1) BUSINESSES CLAIMING THE NY CROPS FOR VALUE ADDED PRODUCTS  TAX
 CREDIT  SHALL  SUBMIT  A COMPUTER-GENERATED REPORT WITH TAX RETURNS THAT
 CLAIM A TAX CREDIT.
   (2) SUCH REPORT SHALL INCLUDE THE NAME OF THE PRODUCER AND  THE  PHYS-
 ICAL PLACE OF BUSINESS WHERE THE PRODUCTS ARE PRODUCED.
   (3)  THE  AMOUNT  PAID  BY  THE GROCER OR BUSINESS TO THE PRODUCER AND
 AMOUNT OF UNITS PURCHASED.
   (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-T.
   (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. NY CROPS FOR VALUE ADDED PRODUCTS 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. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR  ANY  TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT OR IF THE TAXPAYER
 OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM 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. PROVIDED,
 HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT-
 Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
 EON.  THE  TAX  CREDIT  ALLOWED  PURSUANT TO THIS SECTION SHALL APPLY TO
 TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOUSAND  NINE-
 TEEN.
   §  3. Section 606 of the tax law is amended by adding a new subsection
 (iii) to read as follows:
   (III) NY CROPS FOR VALUE ADDED PRODUCTS 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. 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. THE TAX CREDIT ALLOWED

 S. 7217                             3
 
 PURSUANT TO THIS SECTION SHALL APPLY TO TAXABLE YEARS  BEGINNING  ON  OR
 AFTER JANUARY FIRST, TWO THOUSAND NINETEEN.
   §  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 PRODUCTS     AMOUNT OF CREDIT UNDER
 TAX CREDIT UNDER SUBSECTION (III)            SUBDIVISION FIFTY-THREE OF
                                              SECTION TWO HUNDRED TEN-B
   §  5.  The tax law is amended by adding a new section 187-t to read as
 follows:
   § 187-T. NY CROPS FOR VALUE ADDED PRODUCTS 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. HOWEVER,  IF
 THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
 REDUCES  THE  TAX  TO  SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX
 BASED ON THE FIXED DOLLAR MINIMUM 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. PROVIDED, HOWEVER, THE
 PROVISIONS OF SUBSECTION (C) OF SECTION  ONE  THOUSAND  EIGHTY-EIGHT  OF
 THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON. THE TAX
 CREDIT  ALLOWED  PURSUANT  TO  THIS SECTION SHALL APPLY TO TAXABLE YEARS
 BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND NINETEEN.
   § 6. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2019.

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Senate Bill S7217

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Sponsored By

Patty Ritchie