S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5275
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              April 23, 2019
                                ___________
 
 Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law, in relation to creating a  local  food  and
   products sourcing tax credit
 
   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. LOCAL FOOD AND PRODUCTS SOURCING TAX CREDIT. 1. BUSINESSES SUBJECT
 TO  TAX LIABILITY UNDER ARTICLE NINE OR NINE-A OF THIS CHAPTER MAY CLAIM
 THE LOCAL FOODS AND  PRODUCTS  SOURCING  TAX  CREDIT  AGAINST  ANY  SUCH
 LIABILITY  AT  THE  CLOSE  OF  THE  TAX YEAR PROVIDED, HOWEVER, THAT THE
 UNUSED PORTION OF ANY TAX CREDIT CLAIMED SHALL NOT  BE  CARRIED  FORWARD
 AND APPLIED IN ANOTHER TAX YEAR.
   2. FOR THE PURPOSES OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE
 FOLLOWING MEANINGS:
   (A)  "LOCAL  PRODUCTS",  ARE  ANY PRODUCTS GROWN, RAISED, PRODUCED, OR
 MANUFACTURED BY A PRODUCER WITHIN THE STATE OF NEW YORK,  FROM  SEED  OR
 CONCEPTION THROUGH FINAL PRODUCT;
   (B)  "PRODUCER",  IS  AN  INDIVIDUAL  (WHETHER  ACTING INDIVIDUALLY OR
 THROUGH A COOPERATIVE, CORPORATION, PARTNERSHIP,  BUSINESS  ASSOCIATION,
 OR EDUCATIONAL INSTITUTION) WHO IS A FARMER, STUDENT FARMER, OR MANUFAC-
 TURER  OF FOODS OR GOODS IN NEW YORK STATE, IT SHALL NOT HOWEVER INCLUDE
 A WHOLESALER OR DISTRIBUTOR;
   (C) "NET SALES", ARE THE TOTAL SALES OF THE BUSINESS SUBJECT TO TAX.
   3. THE AMOUNT OF THE CREDIT  SHALL  BE  PROSCRIBED  ACCORDING  TO  THE
 FOLLOWING SCHEDULE:
   (A)  TWENTY  PERCENT OF NET SALES ARE ATTRIBUTED TO LOCAL PRODUCTS THE
 CREDIT SHALL BE ONE THOUSAND FIVE HUNDRED DOLLARS.
   (B) FORTY PERCENT OF NET SALES ARE ATTRIBUTED TO  LOCAL  PRODUCTS  THE
 CREDIT SHALL BE THREE THOUSAND DOLLARS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02111-01-9

 S. 5275                             2
 
   (C)  SIXTY  PERCENT  OF NET SALES ARE ATTRIBUTED TO LOCAL PRODUCTS THE
 CREDIT SHALL BE SIX THOUSAND DOLLARS.
   (D)  EIGHTY  PERCENT OF NET SALES ARE ATTRIBUTED TO LOCAL PRODUCTS THE
 CREDIT SHALL BE TWELVE THOUSAND DOLLARS.
   (E) ONE HUNDRED PERCENT OF NET SALES ARE ATTRIBUTED TO LOCAL  PRODUCTS
 THE CREDIT SHALL BE TWENTY-FIVE THOUSAND DOLLARS.
   4.(A)  BUSINESSES  CLAIMING  THE  LOCAL FOOD AND PRODUCTS SOURCING TAX
 CREDIT SHALL SUBMIT A COMPUTER-GENERATED REPORT WITH  TAX  RETURNS  THAT
 CLAIM A TAX CREDIT.
   (B)  SUCH  REPORT SHALL INCLUDE THE NAME OF THE PRODUCER AND THE PHYS-
 ICAL PLACE OF THE BUSINESS WHERE THE PRODUCTS ARE PRODUCED.
   (C) THE AMOUNT PAID BY GROCER OR BUSINESS  TO  THE  PRODUCER  AND  THE
 AMOUNT OF UNITS PURCHASED.
   § 2. This act shall take effect immediately. Effective immediately the
 addition,  amendment  and/or  repeal of any rule or regulation necessary
 for the implementation of this act on its effective date are  authorized
 to be made on or before such date.