S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4773--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 11, 2021
                                ___________
 
 Introduced  by  Sen. HINCHEY -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Budget  and  Revenue  --
   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.
                                                            LBD09695-03-1
              

 S. 4773--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.