S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5529
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 13, 2019
                                ___________
 
 Introduced  by M. of A. SALKA -- 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  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 TWENTY.
   (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)  FIELD  CROPS,  INCLUDING
 CORN, WHEAT, OATS, RYE, BARLEY, HAY, HOPS, 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.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09380-01-9
              

 A. 5529                             2
 
   (C)  THE  AMOUNT  OF  THE  CREDIT SHALL BE PROSCRIBED ACCORDING TO THE
 FOLLOWING SCHEDULE:
   (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-Q.
   (2) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 53.
   (3) ARTICLE 22: SECTION 606, SUBSECTIONS (I) AND (JJJ).
   § 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 TWENTY.
   §  3. Section 606 of the tax law is amended by adding a new subsection
 (jjj) to read as follows:
   (JJJ) 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,

 A. 5529                             3
 
 HOWEVER,  THAT 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 TWENTY.
   §  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 (JJJ)            SUBDIVISION FIFTY-THREE OF
                                              SECTION TWO HUNDRED TEN-B
   §  5.  The tax law is amended by adding a new section 187-q to read as
 follows:
   § 187-Q. 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 TWENTY.
   § 6. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2020.