Relates to creating a tax credit for companies that invest in certain dairy equipment and use such equipment to produce value added flavored or enhanced dairy products.
STATE OF NEW YORK
________________________________________________________________________
7851
IN SENATE
March 5, 2018
___________
Introduced by Sen. RITCHIE -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations
AN ACT to amend the tax law, in relation to creating a tax credit for
companies that invest in certain dairy equipment and use such equip-
ment to produce value added products
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. Value added dairy investment tax credit. (a) General. A taxpayer
4 subject to tax under article nine, nine-A or twenty-two of this chapter
5 shall be allowed a credit against such tax pursuant to the provisions
6 referenced in subdivision (e) of this section, however, the unused
7 portion of any tax credit claimed shall not be carried forward and
8 applied in another tax year. The tax credit allowed pursuant to this
9 section shall apply to taxable years beginning on or after January
10 first, two thousand eighteen.
11 (b) Definitions. For the purposes of this section the following terms
12 shall have the following meanings:
13 (1) "dairy product" shall mean dairy beverages, cheese, yogurt, frozen
14 dairy products or any additional product added by regulation by the
15 commissioner, in consultation with the commissioner of agriculture and
16 markets, that contains milk;
17 (2) "value added dairy product" shall mean the increase in the fair
18 market value of a dairy product resulting from the processing of such
19 into a flavored or enhanced dairy product processed wholly within the
20 state;
21 (3) "farm business" shall mean (i) a business with farm related income
22 of at least one thousand dollars in one of the last three years; or (ii)
23 a new business with farm related income;
24 (4) "eligible expenses" shall mean tools, equipment and supplies for
25 the manufacturing and packaging of value added dairy products; and
26 (5) "eligible taxpayer" means a corporation (including a New York S
27 corporation), a sole proprietorship, a limited liability company or a
28 partnership.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14985-03-8
S. 7851 2
1 (c) The amount of the credit shall be for one hundred percent of up to
2 ten thousand dollars for eligible expenses associated with the
3 production of value added products for wholesale or retail sale within
4 five hundred miles of such taxpayer's farm business.
5 (d) (1) Businesses claiming the value added dairy product tax credit
6 shall submit a computer-generated report with tax returns that claim a
7 tax credit.
8 (2) Such report shall include (i) the name of the producer and the
9 physical place of business where the products are produced; (ii) the
10 amount paid by the eligible taxpayer for eligible expenses; and (iii)
11 the physical places of business such value added dairy products are
12 sold.
13 (e) Cross-references. For application of the credit provided for in
14 this section, see the following provisions of this chapter:
15 (1) Article 9: Section 187-q.
16 (2) Article 9-A: Section 210-B, subdivision 53.
17 (3) Article 22: Section 606, subsections (i) and (iii).
18 § 2. Section 210-B of the tax law is amended by adding a new subdivi-
19 sion 53 to read as follows:
20 53. Value added dairy investment tax credit. A taxpayer shall be
21 allowed a credit, to be computed as provided in section forty-four of
22 this chapter against the tax imposed by this article. The credit allowed
23 under this subdivision for any taxable year shall not reduce the tax due
24 for such year to less than the fixed dollar minimum amount prescribed in
25 paragraph (d) of subdivision one of section two hundred ten of this
26 article. The tax credit allowed pursuant to this section shall apply to
27 taxable years beginning on or after January first, two thousand eigh-
28 teen.
29 § 3. Section 606 of the tax law is amended by adding a new subsection
30 (iii) to read as follows:
31 (iii) Value added dairy investment tax credit. A taxpayer shall be
32 allowed a credit to be computed as provided in section forty-four of
33 this chapter against the tax imposed by this article. The tax credit
34 allowed pursuant to this section shall apply to taxable years beginning
35 on or after January first, two thousand eighteen.
36 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
37 of the tax law is amended by adding a new clause (xliv) to read as
38 follows:
39 (xliv) NY crops for value addedAmount of credit under
40 products tax credit undersubdivision fifty-three of
41 subsection (iii)section two hundred ten-B
42 § 5. The tax law is amended by adding a new section 187-q to read as
43 follows:
44 § 187-q. Value added dairy investment tax credit. (a) Allowance of
45 credit. A taxpayer shall be allowed a credit, to be computed as provided
46 in section forty-four of this chapter against the tax imposed by this
47 article.
48 (b) Application of credit. The credit allowed under this subdivision
49 for any taxable year shall not reduce the tax due for such year to less
50 than the fixed dollar minimum amount prescribed in paragraph (d) of
51 subdivision one of section two hundred ten of this chapter. The tax
52 credit allowed pursuant to this section shall apply to taxable years
53 beginning on or after January first, two thousand eighteen.
54 § 6. This act shall take effect immediately and shall apply to taxable
55 years beginning on or after January 1, 2018.
