S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6385--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 16, 2021
                                ___________
 
 Introduced  by M. of A. WOERNER -- read once and referred to the Commit-
   tee on Ways and Means -- committee discharged, bill  amended,  ordered
   reprinted as amended and recommitted to said committee
 
 AN  ACT  to amend the tax law, in relation to the definition of eligible
   farmer for purposes of the agricultural property tax credit

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.    Paragraph (b) of subdivision 11 of section 210-B of the
 tax law, as added by section 17 of part A of chapter 59 of the  laws  of
 2014, is amended to read as follows:
   (b)  Eligible  farmer.  For  purposes  of  this  subdivision, the term
 "eligible farmer" means a taxpayer whose federal gross income from farm-
 ing for the taxable year is at least two-thirds of excess federal  gross
 income.  The  term  "eligible  farmer" also includes a corporation other
 than the taxpayer of record for qualified agricultural  land  which  has
 paid  the  school  district  property  taxes  on such land pursuant to a
 contract for the future purchase of such land; provided that such corpo-
 ration has a federal gross income from  farming  for  the  taxable  year
 which  is  at  least  two-thirds  of  excess  federal  gross income; and
 provided further that, in determining such income eligibility, a taxpay-
 er may, for any taxable year, use the  average  of  such  federal  gross
 income  from  farming  for that taxable year and such income for the two
 consecutive taxable  years  immediately  preceding  such  taxable  year.
 Excess  federal  gross  income  means the amount of federal gross income
 from all sources for the taxable year in excess of [thirty] FIFTY  thou-
 sand  dollars.  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 for otherwise eligible farmers.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09695-04-1

              

 A. 6385--A                          2
 
   § 2. Paragraph 2 of subsection (n) of section 606 of the tax  law,  as
 amended  by  chapter  297  of  the  laws  of 2010, is amended to read as
 follows:
   (2) Eligible farmer. For purposes of this subsection, the term "eligi-
 ble farmer" means a taxpayer whose federal gross income from farming for
 the  taxable year is at least two-thirds of excess federal gross income.
 The term "eligible farmer" also includes an individual  other  than  the
 taxpayer  of  record  for  qualified  agricultural land who has paid the
 school district property taxes on such land pursuant to a  contract  for
 the  future  purchase  of such land; provided that such individual has a
 federal gross income from farming for the taxable year which is at least
 two-thirds of excess federal gross income; and provided further that, in
 determining such income eligibility, a taxpayer  may,  for  any  taxable
 year, use the average of such federal gross income from farming for that
 taxable year and such income for the two consecutive taxable years imme-
 diately  preceding  such taxable year. 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] FIFTY  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. 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 for otherwise
 eligible farmers.
   § 3. This act shall take effect immediately.