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S05431 Summary:

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S05431 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         5431--A
 
                               2015-2016 Regular Sessions
 
                    IN SENATE
 
                                      May 14, 2015
                                       ___________
 
        Introduced  by  Sen.  FUNKE  -- read twice and ordered printed, and when
          printed to be committed to the Committee on Investigations and Govern-
          ment  Operations  --  committee  discharged,  bill  amended,   ordered
          reprinted as amended and recommitted to said committee
 
        AN  ACT to amend the tax law, in relation to a credit for donations to a
          food bank or other emergency food program by New York state farmers
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Section  606  of  the  tax law is amended by adding a new
     2  subsection (n-1) to read as follows:
     3    (n-1) Credit for  farm  donations  to  food  bank  or  emergency  food
     4  program. (1) General. In the case of a taxpayer who is an eligible farm-
     5  er,  there  shall  be  allowed  a  credit, to be computed as hereinafter
     6  provided against the tax imposed by this article for  taxable  years  on
     7  and  after January first, two thousand sixteen. The amount of the credit
     8  shall be twenty-five percent of the wholesale  cost  of  the  taxpayer's
     9  qualified  donations,  as defined in paragraph three of this subsection,
    10  made to any food bank or  other  public,  charitable  or  not-for-profit
    11  emergency  food program operating within this state, up to five thousand
    12  dollars per year.
    13    (2) Eligible farmer. For purposes of this subsection, the term "eligi-
    14  ble farmer" means a taxpayer whose federal gross income from farming for
    15  the taxable year is at least two-thirds of excess federal gross  income.
    16  Excess  federal  gross  income  means the amount of federal gross income
    17  from all sources for the taxable year reduced by the sum (not to  exceed
    18  thirty thousand dollars) of those items included in federal gross income
    19  which  consist  of  (i)  earned income, (ii) pension payments, including
    20  social security  payments,  (iii)  interest,  and  (iv)  dividends.  For
    21  purposes  of  this paragraph, the term "earned income" shall mean wages,
    22  salaries, tips and other employee compensation, and those items of gross
    23  income which are includible in the  computation  of  net  earnings  from
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11050-04-5
        S. 5431--A                          2
 
     1  self-employment.  For  the purposes of this paragraph, payments from the
     2  state's farmland protection program, administered by the  department  of
     3  agriculture  and markets, shall be included as federal gross income from
     4  farming for otherwise eligible farmers.
     5    (3)  Qualified  donation.  For  purposes  of this subsection, the term
     6  "qualified donation" means a donation of any fresh food  item  grown  or
     7  produced  by  an  eligible farmer to a food bank or other emergency food
     8  program operating within this state.
     9    (4) Application of credit. The credit allowed  under  this  subsection
    10  for  any  taxable year will not reduce the tax due for such year to less
    11  than the minimum tax fixed by this article.  However, if the  amount  of
    12  credit  allowed  under  this subsection for any taxable year reduces the
    13  tax to such amount, any amount of credit thus  not  deductible  in  such
    14  taxable  year will be treated as an overpayment of tax to be credited or
    15  refunded in accordance with  the  provisions  of  section  one  thousand
    16  eighty-six  of  this  chapter.    Provided,  however,  the provisions of
    17  subsection (c) of section one  thousand  eighty-eight  of  this  chapter
    18  notwithstanding, no interest will be paid thereon.
    19    §  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    20  of the tax law is amended by adding a new  clause  (xliii)  to  read  as
    21  follows:
    22  (xliii) Farm donations to food       Amount of credit under
    23  bank or emergency food program       subdivision fifty-one
    24  credit under subsection (n-1)        of section two hundred
    25                                       ten-B
    26    §  3. Section 210-B of the tax law is amended by adding a new subdivi-
    27  sion 51 to read as follows:
    28    51. Credit for farm donations to food bank or emergency food program.
    29    (a) General. In the case of a taxpayer  who  is  an  eligible  farmer,
    30  there  shall be allowed a credit, to be computed as hereinafter provided
    31  against the tax imposed by this article for taxable years  beginning  on
    32  and  after January first, two thousand sixteen. The amount of the credit
    33  shall be twenty-five percent of the wholesale  cost  of  the  taxpayer's
    34  qualified  donations,  as  defined in paragraph (c) of this subdivision,
    35  made to any food bank or  other  public,  charitable  or  not-for-profit
    36  emergency  food program operating within this state, up to five thousand
    37  dollars during the taxable year.
    38    (b) Eligible farmer.  For  purposes  of  this  subdivision,  the  term
    39  "eligible farmer" means a taxpayer whose federal gross income from farm-
    40  ing  for the taxable year is at least two-thirds of excess federal gross
    41  income. Excess federal gross income means the amount  of  federal  gross
    42  income  from all sources for the taxable year reduced by the sum (not to
    43  exceed thirty thousand dollars) of those items included in federal gross
    44  income which consist  of  (i)  earned  income,  (ii)  pension  payments,
    45  including  social security payments, (iii) interest, and (iv) dividends.
    46  For purposes of this paragraph, the  term  "earned  income"  shall  mean
    47  wages,  salaries,  tips and other employee compensation, and those items
    48  of gross income which are includible in the computation of net  earnings
    49  from  self-employment. For the purposes of this paragraph, payments from
    50  the state's farmland protection program, administered by the  department
    51  of  agriculture  and  markets, shall be included as federal gross income
    52  from farming for otherwise eligible farmers.
    53    (c) Qualified donation. For purposes of  this  subdivision,  the  term
    54  "qualified  donation"  means  a donation of any fresh food item grown or
    55  produced by an eligible farmer to a food bank or  other  emergency  food
    56  program operating within this state.
        S. 5431--A                          3
 
     1    (d)  Application  of credit. The credit allowed under this subdivision
     2  for any taxable year will not reduce the tax due for such year  to  less
     3  than  the  minimum tax fixed by this article.  However, if the amount of
     4  credit allowed under this subdivision for any taxable year  reduces  the
     5  tax  to  such  amount,  any amount of credit thus not deductible in such
     6  taxable year will be treated as an overpayment of tax to be credited  or
     7  refunded  in  accordance  with  the  provisions  of section one thousand
     8  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
     9  subsection  (c)  of  section  one  thousand eighty-eight of this chapter
    10  notwithstanding, no interest will be paid thereon.
    11    § 4. The department of agriculture and markets,  in  conjunction  with
    12  the  department  of  taxation  and  finance, shall establish an accepted
    13  wholesale price of the taxpayer's qualified donations and promulgate any
    14  necessary rules and regulations.
    15    § 5. This act shall take effect on the first of January next  succeed-
    16  ing  the  date  on  which  it shall have become a law and shall apply to
    17  taxable years beginning on or after such date.