•  Summary 
  •  
  •  Actions 
  •  
  •  Committee Votes 
  •  
  •  Floor Votes 
  •  
  •  Memo 
  •  
  •  Text 
  •  
  •  LFIN 
  •  
  •  Chamber Video/Transcript 

A09651 Summary:

BILL NOA09651
 
SAME ASSAME AS S08804
 
SPONSORButtenschon
 
COSPNSR
 
MLTSPNSR
 
Amd §§210-B & 606, Tax L
 
Expands a certain tax credit for farmers to include the cost of construction of housing for farm workers.
Go to top    

A09651 Actions:

BILL NOA09651
 
03/27/2024referred to ways and means
Go to top

A09651 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9651
 
SPONSOR: Buttenschon
  TITLE OF BILL: An act to amend the tax law, in relation to expanding a certain tax credit for farmers to include the cost of construction housing for farm workers   PURPOSE OR GENERAL IDEA OF BILL: To expand a certain tax credit for farmers to include the cost of construction of housing for farm workers.   SUMMARY OF PROVISIONS: § 1. Subparagraph (i) of paragraph (b) of subdivision 1 of section 210-B of the tax law, as amended by section 2 of part P of chapter 59 of the laws of 2017, is amended to connote that "For purposes of the credit allowed by clause (i) of this subparagraph, for a taxpayer that is an eligible farmer as provided in paragraph one-a of this subsection, the eligible cost of goods shall include the cost of standard construction materials and labor used in construction of residential housing occupied farm workers employed by the taxpayer to provide labor in the production of the qualifying product produced by the taxpayer, provided such costs satisfy the requirements of this subparagraph." § 2. Subparagraph (A) of paragraph 2 of subsection (a) of section 606 of the tax law, as amended by section 3 of part P of chapter 59 of the laws of 2017, is amended to add the same provision.   JUSTIFICATION: While Businesses that make investments in buildings, machinery, or equipment receive the Investment Tax Credit (ITC), the tax code is silent on this credit being applied to buildings, machinery, and equip- ment dedicated to the building of residential housing for farm workers. This measure provides clarity in the law and enables farms to utilize this credit in the construction of residential housing for farm workers, and simultaneously addresses the housing shortage that exists in New York State.   PRIOR LEGISLATIVE HISTORY: This is a new bill.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: Minimal.   EFFECTIVE DATE: This act shall take effect on the first of January next succeeding the date upon which it shall have become a law and shall apply to tax years commencing on and after such effective date. 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 and completed on or before such effective date.
Go to top

A09651 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9651
 
                   IN ASSEMBLY
 
                                     March 27, 2024
                                       ___________
 
        Introduced  by  M.  of  A.  BUTTENSCHON -- read once and referred to the
          Committee on Ways and Means
 
        AN ACT to amend the tax law, in relation  to  expanding  a  certain  tax
          credit  for  farmers  to  include the cost of construction housing for
          farm workers
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Subparagraph  (i)  of  paragraph  (b) of subdivision 1 of
     2  section 210-B of the tax law, as amended by section 2 of part P of chap-
     3  ter 59 of the laws of 2017, is amended to read as follows:
     4    (i) A credit shall be allowed under this subdivision with  respect  to
     5  tangible personal property and other tangible property, including build-
     6  ings  and  structural  components  of  buildings, which are: depreciable
     7  pursuant to section one hundred  sixty-seven  of  the  internal  revenue
     8  code, have a useful life of four years or more, are acquired by purchase
     9  as  defined  in  section  one  hundred  seventy-nine (d) of the internal
    10  revenue code, have a situs in this state and are (A) principally used by
    11  the taxpayer in the production of goods  by  manufacturing,  processing,
    12  assembling,  refining,  mining, extracting, farming, agriculture, horti-
    13  culture, floriculture, viticulture or commercial fishing, (B) industrial
    14  waste treatment facilities or air pollution control facilities, used  in
    15  the taxpayer's trade or business, (C) research and development property,
    16  or  (D)  principally used in the ordinary course of the taxpayer's trade
    17  or business as a broker or dealer in connection  with  the  purchase  or
    18  sale  (which  shall include but not be limited to the issuance, entering
    19  into, assumption,  offset,  assignment,  termination,  or  transfer)  of
    20  stocks,  bonds  or  other  securities as defined in section four hundred
    21  seventy-five (c)(2) of the Internal Revenue Code, or of  commodities  as
    22  defined in section four hundred seventy-five (e) of the Internal Revenue
    23  Code,  (E)  principally  used  in  the ordinary course of the taxpayer's
    24  trade or business of providing investment advisory services for a  regu-
    25  lated  investment  company as defined in section eight hundred fifty-one
    26  of the Internal Revenue Code, or lending, loan arrangement or loan orig-
    27  ination services to customers in connection with the  purchase  or  sale
    28  (which  shall include but not be limited to the issuance, entering into,
    29  assumption, offset, assignment, termination, or transfer) of  securities
    30  as  defined  in section four hundred seventy-five (c)(2) of the Internal
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14888-01-4

        A. 9651                             2
 
     1  Revenue Code, (F) principally used in the ordinary course of the taxpay-
     2  er's business  as  an  exchange  registered  as  a  national  securities
     3  exchange  within the meaning of sections 3(a)(1) and 6(a) of the Securi-
     4  ties Exchange Act of 1934 or a board of trade as defined in subparagraph
     5  one of paragraph (a) of section fourteen hundred ten of the not-for-pro-
     6  fit  corporation law or as an entity that is wholly owned by one or more
     7  such national securities exchanges or boards of trade and that  provides
     8  automation  or  technical services thereto, or (G) principally used as a
     9  qualified film production facility including qualified  film  production
    10  facilities  having a situs in an empire zone designated as such pursuant
    11  to article eighteen-B of the general municipal law, where  the  taxpayer
    12  is  providing  three  or  more services to any qualified film production
    13  company using the facility, including such services as a studio lighting
    14  grid, lighting and grip equipment, multi-line phone  service,  broadband
    15  information  technology  access,  industrial  scale electrical capacity,
    16  food services, security  services,  and  heating,  ventilation  and  air
    17  conditioning.  For purposes of clauses (D), (E) and (F) of this subpara-
    18  graph, property purchased by a  taxpayer  affiliated  with  a  regulated
    19  broker,  dealer,  registered  investment  advisor,  national  securities
    20  exchange or board of trade, is allowed a credit under  this  subdivision
    21  if  the  property  is  used  by its affiliated regulated broker, dealer,
    22  registered investment advisor, national securities exchange or board  of
    23  trade  in  accordance with this subdivision. For purposes of determining
    24  if the property is principally used in qualifying uses, the uses by  the
    25  taxpayer  described  in  clauses (D) and (E) of this subparagraph may be
    26  aggregated. In addition, the uses by the taxpayer, its affiliated  regu-
    27  lated  broker,  dealer and registered investment advisor under either or
    28  both of those clauses may be aggregated. Provided, however,  a  taxpayer
    29  shall  not be allowed the credit provided by clauses (D), (E) and (F) of
    30  this subparagraph unless the property is first placed in service  before
    31  October  first,  two  thousand fifteen and (i) eighty percent or more of
    32  the  employees  performing  the  administrative  and  support  functions
    33  resulting  from  or related to the qualifying uses of such equipment are
    34  located in this state or (ii)  the  average  number  of  employees  that
    35  perform  the  administrative  and  support  functions  resulting from or
    36  related to the qualifying uses of such equipment and are located in this
    37  state during the taxable year for which the credit is claimed  is  equal
    38  to  or greater than ninety-five percent of the average number of employ-
    39  ees that perform these functions and are located in  this  state  during
    40  the thirty-six months immediately preceding the year for which the cred-
    41  it  is  claimed,  or (iii) the number of employees located in this state
    42  during the taxable year for which the credit is claimed is equal  to  or
    43  greater  than  ninety percent of the number of employees located in this
    44  state on December thirty-first, nineteen hundred ninety-eight or, if the
    45  taxpayer was not a calendar year taxpayer in  nineteen  hundred  ninety-
    46  eight,  the  last  day  of  its first taxable year ending after December
    47  thirty-first, nineteen hundred ninety-eight.  If  the  taxpayer  becomes
    48  subject  to  tax in this state after the taxable year beginning in nine-
    49  teen hundred ninety-eight, then the taxpayer is not required to  satisfy
    50  the  employment test provided in the preceding sentence of this subpara-
    51  graph for its first taxable year. For purposes of clause (iii)  of  this
    52  subparagraph  the employment test will be based on the number of employ-
    53  ees located in this state on the last day of the first taxable year  the
    54  taxpayer  is  subject  to tax in this state. If the uses of the property
    55  must be aggregated to determine whether the property is principally used
    56  in qualifying uses, then either each affiliate using the  property  must

        A. 9651                             3
 
     1  satisfy  this  employment test or this employment test must be satisfied
     2  through the aggregation of the employees of the taxpayer, its affiliated
     3  regulated broker, dealer, and registered investment  adviser  using  the
     4  property.  For  purposes  of  clause  (A) of this subparagraph, tangible
     5  personal property and other tangible property shall not include property
     6  principally used by the taxpayer in the production  or  distribution  of
     7  electricity,  natural  gas  after extraction from wells, steam, or water
     8  delivered through pipes and mains. For purposes of the credit allowed by
     9  clause (A) of this subparagraph, for a  taxpayer  that  is  an  eligible
    10  farmer  as provided in paragraph (a-1) of this subdivision, the eligible
    11  cost of goods shall include the cost of standard construction  materials
    12  and  labor used in the construction of residential housing occupied farm
    13  workers employed by the taxpayer to provide labor in the  production  of
    14  the  qualifying  product  produced  by the taxpayer, provided such costs
    15  satisfy the other requirements of this subparagraph.
    16    § 2. Subparagraph (A) of paragraph 2 of subsection (a) of section  606
    17  of  the  tax law, as amended by section 3 of part P of chapter 59 of the
    18  laws of 2017, is amended to read as follows:
    19    (A) A credit shall be allowed under this subsection  with  respect  to
    20  tangible personal property and other tangible property, including build-
    21  ings  and  structural  components  of  buildings, which are: depreciable
    22  pursuant to section one hundred  sixty-seven  of  the  internal  revenue
    23  code, have a useful life of four years or more, are acquired by purchase
    24  as  defined  in  section  one  hundred  seventy-nine (d) of the internal
    25  revenue code, have a situs in this state and are (i) principally used by
    26  the taxpayer in the production of goods  by  manufacturing,  processing,
    27  assembling,  refining,  mining, extracting, farming, agriculture, horti-
    28  culture, floriculture, viticulture or commercial  fishing,  (ii)  indus-
    29  trial  waste  treatment  facilities or air pollution control facilities,
    30  used in the taxpayer's trade or business, (iii) research and development
    31  property, (iv) principally used in the ordinary course of the taxpayer's
    32  trade or business as a broker or dealer in connection with the  purchase
    33  or  sale (which shall include but not be limited to the issuance, enter-
    34  ing into, assumption, offset, assignment, termination, or  transfer)  of
    35  stocks,  bonds  or  other  securities as defined in section four hundred
    36  seventy-five (c)(2) of the Internal Revenue Code, or of  commodities  as
    37  defined  in section 475(e) of the Internal Revenue Code, (v) principally
    38  used in the ordinary course of  the  taxpayer's  trade  or  business  of
    39  providing investment advisory services for a regulated investment compa-
    40  ny as defined in section eight hundred fifty-one of the Internal Revenue
    41  Code,  or  lending,  loan  arrangement  or  loan origination services to
    42  customers in connection with the purchase or sale (which  shall  include
    43  but  not  be limited to the issuance, entering into, assumption, offset,
    44  assignment, termination,  or  transfer)  of  securities  as  defined  in
    45  section  four  hundred seventy-five (c)(2) of the Internal Revenue Code,
    46  or (vi) principally used as a qualified film production facility includ-
    47  ing qualified film production facilities having a  situs  in  an  empire
    48  zone  designated  as  such pursuant to article eighteen-B of the general
    49  municipal law, where the taxpayer is providing three or more services to
    50  any qualified film production company using the facility, including such
    51  services as a studio lighting grid, lighting and grip equipment,  multi-
    52  line  phone service, broadband information technology access, industrial
    53  scale electrical capacity, food services, security services,  and  heat-
    54  ing,  ventilation and air conditioning. For purposes of clauses (iv) and
    55  (v) of this subparagraph, property purchased by  a  taxpayer  affiliated
    56  with  a  regulated  broker,  dealer, or registered investment adviser is

        A. 9651                             4
 
     1  allowed a credit under this subsection if the property is  used  by  its
     2  affiliated  regulated broker, dealer or registered investment adviser in
     3  accordance with this subsection. For  purposes  of  determining  if  the
     4  property is principally used in qualifying uses, the uses by the taxpay-
     5  er  described in clauses (iv) and (v) of this subparagraph may be aggre-
     6  gated. In addition, the uses by the taxpayer, its  affiliated  regulated
     7  broker, dealer and registered investment adviser under either or both of
     8  those clauses may be aggregated. Provided, however, a taxpayer shall not
     9  be  allowed the credit provided by clauses (iv) and (v) of this subpara-
    10  graph unless (I) eighty percent or more of the employees performing  the
    11  administrative  and  support  functions resulting from or related to the
    12  qualifying uses of such equipment are located in this state, or (II) the
    13  average number of employees that perform the administrative and  support
    14  functions  resulting  from  or  related  to  the qualifying uses of such
    15  equipment and are located in this state  during  the  taxable  year  for
    16  which  the  credit  is  claimed  is equal to or greater than ninety-five
    17  percent of the average number of employees that perform these  functions
    18  and  are  located in this state during the thirty-six months immediately
    19  preceding the year for which the credit is claimed, or (III) the  number
    20  of employees located in this state during the taxable year for which the
    21  credit  is  claimed  is  equal  to or greater than ninety percent of the
    22  number of employees located in  this  state  on  December  thirty-first,
    23  nineteen  hundred  ninety-eight  or,  if the taxpayer was not a calendar
    24  year taxpayer in nineteen hundred ninety-eight,  the  last  day  of  its
    25  first  taxable year ending after December thirty-first, nineteen hundred
    26  ninety-eight. If the taxpayer becomes subject to tax in this state after
    27  the taxable year beginning in nineteen hundred  ninety-eight,  then  the
    28  taxpayer  is not required to satisfy the employment test provided in the
    29  preceding sentence of this subparagraph for its first taxable year.  For
    30  the  purposes  of  clause (III) of this subparagraph the employment test
    31  will be based on the number of employees located in this  state  on  the
    32  last  day  of  the  first taxable year the taxpayer is subject to tax in
    33  this state. If the uses of the property must be aggregated to  determine
    34  whether the property is principally used in qualifying uses, then either
    35  each  affiliate  using the property must satisfy this employment test or
    36  this employment test must be satisfied through the  aggregation  of  the
    37  employees  of the taxpayer, its affiliated regulated broker, dealer, and
    38  registered investment adviser using the property. For purposes of clause
    39  (i) of this subparagraph, tangible personal property and other  tangible
    40  property  shall not include property principally used by the taxpayer in
    41  the  production  or  distribution  of  electricity,  natural  gas  after
    42  extraction  from  wells,  steam,  or  water  delivered through pipes and
    43  mains. For purposes of the credit allowed by clause (i) of this subpara-
    44  graph, for a taxpayer that is an eligible farmer as  provided  in  para-
    45  graph one-a of this subsection, the eligible cost of goods shall include
    46  the  cost  of  standard  construction  materials  and  labor used in the
    47  construction of residential housing occupied farm  workers  employed  by
    48  the  taxpayer to provide labor in the production of the qualifying prod-
    49  uct produced by the taxpayer, provided  such  costs  satisfy  the  other
    50  requirements of this subparagraph.
    51    §  3. This act shall take effect on the first of January next succeed-
    52  ing the date upon which it shall have become a law and  shall  apply  to
    53  tax  years  commencing on and after such effective date. Effective imme-
    54  diately, the addition, amendment and/or repeal of any rule or regulation
    55  necessary for the implementation of this act on its effective  date  are
    56  authorized to be made and completed on or before such effective date.
Go to top