Relates to the creation of a certified transitional tax credit for taxpayers that demonstrate their agricultural products were sold during a period of transition into USDA organic certification, under the Whole Foods Market IP. L.P. "responsibly grown" labelling program, or under the QAI and Hesco, Inc. "certified transitional" label.
STATE OF NEW YORK
________________________________________________________________________
4721--A
2017-2018 Regular Sessions
IN SENATE
February 24, 2017
___________
Introduced by Sens. RITCHIE, MARCHIONE -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Investi-
gations and Government Operations -- recommitted to the Committee on
Investigations and Government Operations in accordance with Senate
Rule 6, sec. 8 -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to creating a certified transi-
tional tax credit; and providing for the repeal of such provisions
upon expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The tax law is amended by adding a new section 44 to read
2 as follows:
3 § 44. Certified transitional tax credit. (a) Allowance of credit. A
4 taxpayer, who is subject to tax under article nine, nine-A, or twenty-
5 two of this chapter shall be allowed a refundable credit against such
6 tax to be computed as provided in this section, for the tax imposed by
7 this article for taxable years after January first, two thousand nine-
8 teen.
9 (b) Value of credit. The amount of such credit shall be equal to twen-
10 ty-five percent of the total pounds of goods sold under an eligible
11 program under subdivision (c) of this section, multiplied by one-half.
12 (c) Eligible programs. Taxpayers that wish to claim this credit must
13 demonstrate their agricultural products were sold during a period of
14 transition in to USDA organic certification, under the Whole Foods
15 Market IP. L.P. "responsibly grown" labelling program, or under the QAI
16 and Hesco, Inc. "certified transitional" label.
17 (d) Application of credit. The credit allowed under this section for
18 any taxable year shall not reduce the tax due for such year to less than
19 the minimum tax fixed by this article. However, if the amount of credit
20 allowed under this section for any taxable year reduces the tax to such
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10248-02-8
S. 4721--A 2
1 amount, any amount of credit thus not deductible in such taxable year
2 shall be treated as an overpayment of tax to be credited or refunded in
3 accordance with the provisions of section one thousand eighty-six of
4 this chapter. Except as provided in subsection (c) of section one thou-
5 sand eighty-eight of this chapter, no interest shall be paid thereon.
6 § 2. The tax law is amended by adding a new section 187-q to read as
7 follows:
8 § 187-q. Certified transitional tax credit. (a) Allowance of credit. A
9 taxpayer, who is subject to tax under article nine, nine-A, or twenty-
10 two of this chapter shall be allowed a refundable credit against such
11 tax to be computed as provided in this section, for the tax imposed by
12 this article for taxable years after January first, two thousand nine-
13 teen.
14 (b) Value of credit. The amount of such credit shall be equal to twen-
15 ty-five percent of the total pounds of goods sold under an eligible
16 program under subdivision (c) of this section, multiplied by one-half.
17 (c) Eligible programs. Taxpayers that wish to claim this credit must
18 demonstrate their agricultural products were sold during a period of
19 transition in to USDA organic certification, under the Whole Foods
20 Market IP. L.P. "responsibly grown" labelling program, or under the QAI
21 and Hesco, Inc. "certified transitional" label.
22 (d) Application of credit. The credit allowed under this section for
23 any taxable year shall not reduce the tax due for such year to less than
24 the minimum tax fixed by this article. However, if the amount of credit
25 allowed under this section for any taxable year reduces the tax to such
26 amount, any amount of credit thus not deductible in such taxable year
27 shall be treated as an overpayment of tax to be credited or refunded in
28 accordance with the provisions of section one thousand eighty-six of
29 this chapter. Except as provided in subsection (c) of section one thou-
30 sand eighty-eight of this chapter, no interest shall be paid thereon.
31 § 3. Section 210-B of the tax law is amended by adding a new subdivi-
32 sion 53 to read as follows:
33 53. Certified transitional tax credit. (a) Allowance of credit. A
34 taxpayer, who is subject to tax under article nine, nine-A, or twenty-
35 two of this chapter shall be allowed a refundable credit against such
36 tax to be computed as provided in this subdivision, for the tax imposed
37 by this article for taxable years after January first, two thousand
38 nineteen.
39 (b) Value of credit. The amount of such credit shall be equal to twen-
40 ty-five percent of the total pounds of goods sold under an eligible
41 program under subdivision (c) of this section, multiplied by one-half.
42 (c) Eligible programs. Taxpayers that wish to claim this credit must
43 demonstrate their agricultural products were sold during a period of
44 transition in to USDA organic certification, under the Whole Foods
45 Market IP. L.P. "responsibly grown" labelling program, or under the QAI
46 and Hesco, Inc. "certified transitional" label.
47 (d) Application of credit. The credit allowed under this subdivision
48 for any taxable year shall not reduce the tax due for such year to less
49 than the minimum tax fixed by this article. However, if the amount of
50 credit allowed under this subdivision for any taxable year reduces the
51 tax to such amount, any amount of credit thus not deductible in such
52 taxable year shall be treated as an overpayment of tax to be credited or
53 refunded in accordance with the provisions of section one thousand
54 eighty-six of this chapter. Except as provided in subsection (c) of
55 section one thousand eighty-eight of this chapter, no interest shall be
56 paid thereon.
S. 4721--A 3
1 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
2 of the tax law is amended by adding a new clause (xliv) to read as
3 follows:
4 (xliv) Certified transitionalAmount of credit under
5 tax credit under sectionsubdivision fifty-three of
6 forty-four of this chaptersection two hundred ten-B
7 § 5. This act shall take effect January 1, 2019, and shall apply to
8 taxable years beginning on or after such date, and shall expire January
9 1, 2025 when upon such date the provisions of this act shall be deemed
10 repealed; provided, however, that effective immediately the addition,
11 amendment and/or repeal of any rule or regulation by the department of
12 agriculture and markets, in conjunction with the department of taxation
13 and finance that is necessary for the implementation of this act on its
14 effective date are authorized to be made and completed on or before such
15 effective date.
