Bill Text: NY A07107 | 2015-2016 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relates to establishing a business franchise and personal income tax credit for natural resources improvement projects upon farmlands and forestlands.
Spectrum: Slight Partisan Bill (Republican 4-2)
Status: (Introduced - Dead) 2016-03-22 - print number 7107a [A07107 Detail]
Download: New_York-2015-A07107-Introduced.html
Bill Title: Relates to establishing a business franchise and personal income tax credit for natural resources improvement projects upon farmlands and forestlands.
Spectrum: Slight Partisan Bill (Republican 4-2)
Status: (Introduced - Dead) 2016-03-22 - print number 7107a [A07107 Detail]
Download: New_York-2015-A07107-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
7107
2015-2016 Regular Sessions
I N A S S E M B L Y
April 23, 2015
___________
Introduced by M. of A. SKARTADOS -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to establishing a business
franchise and personal income tax credit for natural resources
improvement projects upon farmlands and forestlands
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Subdivision 9 of section 208 of the tax law is amended by
2 adding a new paragraph (u) to read as follows:
3 (U) IN THE EVENT THE TAXPAYER CLAIMS THE NATURAL RESOURCE IMPROVEMENT
4 CREDIT FOR FARMLANDS AND FORESTLANDS ESTABLISHED PURSUANT TO SUBDIVISION
5 FORTY-NINE OF SECTION TWO HUNDRED TEN-B OF THIS ARTICLE, ENTIRE NET
6 INCOME SHALL BE INCREASED BY THE AMOUNT OF ANY EXPENDITURES DEFINED IN
7 INTERNAL REVENUE CODE SECTION 175(C)(1) THAT THE TAXPAYER DEDUCTED FROM
8 ITS TOTAL NET INCOME ON ITS FEDERAL TAX RETURN FOR THE TAX YEAR.
9 S 2. Section 210-B of the tax law is amended by adding a new subdivi-
10 sion 49 to read as follows:
11 49. NATURAL RESOURCE IMPROVEMENT CREDIT FOR FARMLANDS AND FORESTLANDS.
12 (A) ALLOWANCE OF CREDIT. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY
13 FIRST, TWO THOUSAND SIXTEEN, A TAXPAYER SHALL BE ALLOWED A CREDIT
14 AGAINST THE TAX IMPOSED BY THIS ARTICLE IN AN AMOUNT EQUAL TO
15 TWENTY-FIVE PERCENT OF THE TAXPAYER'S ELIGIBLE EXPENDITURES DURING THE
16 TAX YEAR FOR A NATURAL RESOURCES IMPROVEMENT PROJECT. PROVIDED, HOWEVER,
17 THAT THE CREDIT GRANTED FOR ANY NATURAL RESOURCE IMPROVEMENT PROJECT
18 PURSUANT TO THIS SUBDIVISION SHALL NOT EXCEED FIFTY THOUSAND DOLLARS.
19 (B) DEFINITIONS. FOR THE PURPOSES OF THIS SUBDIVISION, THE FOLLOWING
20 DEFINITIONS SHALL APPLY:
21 (1) "ELIGIBLE EXPENDITURES" SHALL MEAN FEES FOR ARCHITECTURAL, ARCHEO-
22 LOGICAL, GEOLOGICAL AND ENGINEERING SERVICES; THE COSTS OF DEVELOPING
23 PLANS AND SPECIFICATIONS; FEES FOR CONSULTANT AND LEGAL SERVICES; AND
24 ANY EXPENDITURE DEFINED IN INTERNAL REVENUE CODE SECTION 175(C)(1),
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06118-01-5
A. 7107 2
1 INCLUDING EXPENDITURES RELATED TO THE APPLICATION OF LIME AND FERTILIZ-
2 ER, IMPROVEMENT OF DRAINAGE IN THE CASE OF OPEN AREAS THAT HAVE BEEN
3 USED FOR AGRICULTURAL PURPOSES AT ANY TIME IN THE PAST, AND EXPENDITURES
4 RELATED TO THE DECONSTRUCTION AND REMOVAL OF FENCES, STREAM CROSSINGS
5 AND NECESSARY RIPARIAN BUFFERS AND FORESTLAND IMPROVEMENTS AS REQUIRED
6 BY THE NATURAL RESOURCES IMPROVEMENT PROJECT.
7 (2) "FARMLAND AND FORESTLAND" SHALL MEAN LAND WHICH, DURING THE TAXA-
8 BLE YEAR IN WHICH THE CREDIT IS CLAIMED PURSUANT TO THIS SUBDIVISION, IS
9 ELIGIBLE FOR AN AGRICULTURAL ASSESSMENT PURSUANT TO ARTICLE
10 TWENTY-FIVE-AA OF THE AGRICULTURE AND MARKETS LAW OR ELIGIBLE FOR A
11 FOREST ASSESSMENT UNDER SECTION FOUR HUNDRED EIGHTY-A OF THE REAL PROP-
12 ERTY TAX LAW.
13 (3) "NATURAL RESOURCES IMPROVEMENT PROJECT" SHALL MEAN THE RESTORATION
14 OF FARMLAND AND FORESTLAND FOR THE PRODUCTION OF AGRICULTURAL PERENNIAL
15 CROPS, INCLUDING THOSE CROPS INTENDED FOR ENERGY PRODUCTION PURPOSES, BY
16 IMPROVING SUCH LAND WHICH HAS NOT BEEN USED IN AGRICULTURAL PRODUCTION
17 FOR TWO OR MORE YEARS PRIOR TO THE INITIATION OF SUCH RESTORATION OR
18 FORESTLAND IMPROVEMENTS REQUIRED IN THE MANAGEMENT PLAN.
19 (C) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
20 FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
21 THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF
22 SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF
23 CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE
24 TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
25 TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
26 REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
27 EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF
28 SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
29 NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
30 S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
31 of the tax law is amended by adding a new clause (xli) to read as
32 follows:
33 (XLI) NATURAL RESOURCE AMOUNT OF CREDIT FOR ELIGIBLE
34 IMPROVEMENT CREDIT FOR EXPENDITURES FOR A NATURAL
35 FARMLANDS AND RESOURCES IMPROVEMENT PROJECT
36 FORESTLANDS UNDER UNDER SUBDIVISION FORTY-NINE
37 SUBSECTION (CCC) OF SECTION TWO HUNDRED TEN-B
38 S 4. Section 606 of the tax law is amended by adding a new subsection
39 (ccc) to read as follows:
40 (CCC) NATURAL RESOURCE IMPROVEMENT CREDIT FOR FARMLANDS AND FOREST-
41 LANDS. (1) ALLOWANCE OF CREDIT. FOR TAXABLE YEARS BEGINNING ON OR AFTER
42 JANUARY FIRST, TWO THOUSAND SIXTEEN, A TAXPAYER SHALL BE ALLOWED A CRED-
43 IT AGAINST THE TAX IMPOSED BY THIS ARTICLE IN AN AMOUNT EQUAL TO TWEN-
44 TY-FIVE PERCENT OF THE TAXPAYER'S ELIGIBLE EXPENDITURES DURING THE TAX
45 YEAR FOR A NATURAL RESOURCE IMPROVEMENT PROJECT. PROVIDED, HOWEVER, THAT
46 THE CREDIT GRANTED FOR ANY NATURAL RESOURCE IMPROVEMENT PROJECT PURSUANT
47 TO THIS SUBSECTION SHALL NOT EXCEED FIFTY THOUSAND DOLLARS.
48 (2) DEFINITIONS. FOR THE PURPOSES OF THIS SUBSECTION, THE FOLLOWING
49 DEFINITIONS SHALL APPLY:
50 (A) "ELIGIBLE EXPENDITURES" SHALL MEAN FEES FOR ARCHITECTURAL, ARCHEO-
51 LOGICAL, GEOLOGICAL AND ENGINEERING SERVICES; THE COSTS OF DEVELOPING
52 PLANS AND SPECIFICATIONS; FEES FOR CONSULTANT AND LEGAL SERVICES; AND
53 ANY EXPENDITURE DEFINED IN INTERNAL REVENUE CODE SECTION 175(C)(1),
54 INCLUDING EXPENDITURES RELATED TO THE APPLICATION OF LIME AND FERTILIZ-
55 ER, IMPROVEMENT OF DRAINAGE IN THE CASE OF OPEN AREAS THAT HAVE BEEN
56 USED FOR AGRICULTURAL PURPOSES AT ANY TIME IN THE PAST, AND EXPENDITURES
A. 7107 3
1 RELATED TO THE DECONSTRUCTION AND REMOVAL OF FENCES, STREAM CROSSINGS
2 AND NECESSARY RIPARIAN BUFFERS AND FORESTLAND IMPROVEMENTS AS REQUIRED
3 BY THE NATURAL RESOURCE IMPROVEMENT PROJECT.
4 (B) "FARMLAND AND FORESTLAND" SHALL MEAN LAND WHICH, DURING THE TAXA-
5 BLE YEAR IN WHICH THE CREDIT IS CLAIMED PURSUANT TO THIS SUBSECTION, IS
6 ELIGIBLE FOR AN AGRICULTURAL ASSESSMENT PURSUANT TO ARTICLE
7 TWENTY-FIVE-AA OF THE AGRICULTURE AND MARKETS LAW OR ELIGIBLE FOR A
8 FOREST ASSESSMENT UNDER SECTION FOUR HUNDRED EIGHTY-A OF THE REAL PROP-
9 ERTY TAX LAW.
10 (C) "NATURAL RESOURCE IMPROVEMENT PROJECT" SHALL MEAN THE RESTORATION
11 OF FARMLAND AND FORESTLAND FOR THE PRODUCTION OF AGRICULTURAL PERENNIAL
12 CROPS, INCLUDING THOSE CROPS INTENDED FOR ENERGY PRODUCTION PURPOSES, BY
13 IMPROVING SUCH LAND WHICH HAS NOT BEEN USED IN AGRICULTURAL PRODUCTION
14 FOR TWO OR MORE YEARS PRIOR TO THE COMPLETION OF SUCH RESTORATION OR HAD
15 A COMMERCIAL TIMBER HARVEST WITHIN THE PAST FIVE YEARS.
16 (3) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
17 THIS SUBSECTION SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE
18 TAXPAYER MAY RECEIVE AND THE COMPTROLLER, SUBJECT TO A CERTIFICATE OF
19 THE COMMISSIONER, SHALL PAY AS AN OVERPAYMENT, WITHOUT INTEREST, THE
20 AMOUNT OF SUCH EXCESS.
21 S 5. Paragraph 4 of subsection (b) of section 612 of the tax law, as
22 amended by chapter 406 of the laws of 1990, is amended to read as
23 follows:
24 (4) Interest on indebtedness incurred or continued to purchase or
25 carry obligations or securities the interest on which is exempt from tax
26 under this article, to the extent deductible in determining federal
27 adjusted gross income; PROVIDED THAT IN THE EVENT THE TAXPAYER CLAIMS
28 THE NATURAL RESOURCE IMPROVEMENT CREDIT FOR FARMLANDS AND FORESTLANDS
29 ESTABLISHED PURSUANT TO SUBSECTION (CCC) OF SECTION SIX HUNDRED SIX OF
30 THIS ARTICLE, THE AMOUNT OF ANY EXPENDITURES DEFINED IN INTERNAL REVENUE
31 CODE SECTION 175(C)(1) THAT THE TAXPAYER DEDUCTED FROM HIS OR HER FEDER-
32 AL GROSS INCOME ON HIS OR HER FEDERAL TAX RETURN FOR THE TAX YEAR.
33 S 6. This act shall take effect immediately and shall apply to resto-
34 ration projects initiated on or after such date.
