STATE OF NEW YORK ________________________________________________________________________ 4227 2021-2022 Regular Sessions IN ASSEMBLY February 1, 2021 ___________ Introduced by M. of A. SALKA -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to creating a tax credit for companies that purchase New York-grown crops and use such crops in 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 45 to read 2 as follows: 3 § 45. NY crops for value added products tax credit. (a) General. A 4 taxpayer subject to tax under article nine, nine-A or twenty-two of this 5 chapter shall be allowed a credit against such tax pursuant to the 6 provisions referenced in subdivision (e) of this section, however, the 7 unused portion of any tax credit claimed shall not be carried forward 8 and 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 twenty-two. 11 (b) Definitions. For the purposes of this section the following terms 12 shall have the following meanings: 13 (1) "crop" shall mean (i) fruits, including apples, peaches, grapes, 14 cherries and berries, (ii) vegetables, including tomatoes, snap beans, 15 cabbage, carrots, beets and onions, and (iii) field crops, including 16 corn, wheat, oats, rye, barley, hay, hops, potatoes and dry beans; 17 (2) "value added product" shall mean the increase in the fair market 18 value of a product resulting from the processing of such product; 19 (3) "net sales" shall mean the total sales of the business subject to 20 tax. 21 (4) "eligible taxpayer" means a corporation (including a New York S 22 corporation), a sole proprietorship, a limited liability company or a 23 partnership. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07886-01-1A. 4227 2 1 (c) The amount of the credit shall be proscribed according to the 2 following schedule: 3 (1) for twenty percent of net sales attributed to value added products 4 that used a New York-grown crop, the credit shall be one thousand five 5 hundred dollars. 6 (2) for forty percent of net sales attributed to value added products 7 that used a New York-grown crop, the credit shall be three thousand 8 dollars. 9 (3) for sixty percent of net sales attributed to value added products 10 that used a New York-grown crop, the credit shall be six thousand 11 dollars. 12 (4) for eighty percent of net sales attributed to value added products 13 that used a New York-grown crop, the credit shall be twelve thousand 14 dollars. 15 (5) for one hundred percent of net sales attributed to value added 16 products that used a New York-grown crop, the credit shall be twenty- 17 five thousand dollars. 18 (d) (1) Businesses claiming the NY crops for value added products tax 19 credit shall submit a computer-generated report with tax returns that 20 claim a tax credit. 21 (2) Such report shall include the name of the producer and the phys- 22 ical place of business where the products are produced. 23 (3) The amount paid by the grocer or business to the producer and 24 amount of units purchased. 25 (e) Cross-references. For application of the credit provided for in 26 this section, see the following provisions of this chapter: 27 (1) Article 9: Section 187-q. 28 (2) Article 9-A: Section 210-B, subdivision 55. 29 (3) Article 22: Section 606, subsections (i) and (kkk). 30 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 31 sion 55 to read as follows: 32 55. NY crops for value added products tax credit. A taxpayer shall be 33 allowed a credit, to be computed as provided in section forty-five of 34 this chapter against the tax imposed by this article. The credit allowed 35 under this subdivision for any taxable year shall not reduce the tax due 36 for such year to less than the fixed dollar minimum amount prescribed in 37 paragraph (d) of subdivision one of section two hundred ten of this 38 article. However, if the amount of credit allowed under this subdivision 39 for any taxable year reduces the tax to such amount or if the taxpayer 40 otherwise pays tax based on the fixed dollar minimum amount, any amount 41 of credit thus not deductible in such taxable year shall be treated as 42 an overpayment of tax to be credited or refunded in accordance with the 43 provisions of section one thousand eighty-six of this chapter. Provided, 44 however, the provisions of subsection (c) of section one thousand eight- 45 y-eight of this chapter notwithstanding, no interest shall be paid ther- 46 eon. The tax credit allowed pursuant to this section shall apply to 47 taxable years beginning on or after January first, two thousand twenty- 48 two. 49 § 3. Section 606 of the tax law is amended by adding a new subsection 50 (kkk) to read as follows: 51 (kkk) NY crops for value added products tax credit. A taxpayer shall 52 be allowed a credit to be computed as provided in section forty-five of 53 this chapter against the tax imposed by this article. If the amount of 54 the credit allowed under this subsection for any taxable year shall 55 exceed the taxpayer's tax for such year, the excess shall be treated as 56 an overpayment of tax to be credited or refunded in accordance with theA. 4227 3 1 provisions of section six hundred eighty-six of this article, provided, 2 however, that no interest shall be paid thereon. The tax credit allowed 3 pursuant to this section shall apply to taxable years beginning on or 4 after January first, two thousand twenty-two. 5 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 6 of the tax law is amended by adding a new clause (xlvi) to read as 7 follows: 8 (xlvi) NY crops for value added products Amount of credit under 9 tax credit under subsection (kkk) subdivision fifty-five of 10 section two hundred ten-B 11 § 5. The tax law is amended by adding a new section 187-q to read as 12 follows: 13 § 187-q. NY crops for value added products tax credit. (a) Allowance 14 of credit. A taxpayer shall be allowed a credit, to be computed as 15 provided in section forty-five of this chapter against the tax imposed 16 by this article. 17 (b) Application of credit. The credit allowed under this subdivision 18 for any taxable year shall not reduce the tax due for such year to less 19 than the fixed dollar minimum amount prescribed in paragraph (d) of 20 subdivision one of section two hundred ten of this chapter. However, if 21 the amount of credit allowed under this subdivision for any taxable year 22 reduces the tax to such amount or if the taxpayer otherwise pays tax 23 based on the fixed dollar minimum amount, any amount of credit thus not 24 deductible in such taxable year shall be treated as an overpayment of 25 tax to be credited or refunded in accordance with the provisions of 26 section one thousand eighty-six of this chapter. Provided, however, the 27 provisions of subsection (c) of section one thousand eighty-eight of 28 this chapter notwithstanding, no interest shall be paid thereon. The tax 29 credit allowed pursuant to this section shall apply to taxable years 30 beginning on or after January first, two thousand twenty-two. 31 § 6. This act shall take effect immediately and shall apply to taxable 32 years beginning on or after January 1, 2022.