Bill Text: NY S08804 | 2023-2024 | General Assembly | Introduced
Bill Title: Expands a certain tax credit for farmers to include the cost of construction of housing for farm workers.
Spectrum: Partisan Bill (Republican 8-0)
Status: (Introduced - Dead) 2024-03-13 - REFERRED TO BUDGET AND REVENUE [S08804 Detail]
Download: New_York-2023-S08804-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8804 IN SENATE March 13, 2024 ___________ Introduced by Sens. TEDISCO, BORRELLO -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Reven- ue AN ACT to amend the tax law, in relation to expanding a certain tax credit for farmers to include the cost of construction housing for farm workers The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subparagraph (i) of paragraph (b) of subdivision 1 of 2 section 210-B of the tax law, as amended by section 2 of part P of chap- 3 ter 59 of the laws of 2017, is amended to read as follows: 4 (i) A credit shall be allowed under this subdivision with respect to 5 tangible personal property and other tangible property, including build- 6 ings and structural components of buildings, which are: depreciable 7 pursuant to section one hundred sixty-seven of the internal revenue 8 code, have a useful life of four years or more, are acquired by purchase 9 as defined in section one hundred seventy-nine (d) of the internal 10 revenue code, have a situs in this state and are (A) principally used by 11 the taxpayer in the production of goods by manufacturing, processing, 12 assembling, refining, mining, extracting, farming, agriculture, horti- 13 culture, floriculture, viticulture or commercial fishing, (B) industrial 14 waste treatment facilities or air pollution control facilities, used in 15 the taxpayer's trade or business, (C) research and development property, 16 or (D) principally used in the ordinary course of the taxpayer's trade 17 or business as a broker or dealer in connection with the purchase or 18 sale (which shall include but not be limited to the issuance, entering 19 into, assumption, offset, assignment, termination, or transfer) of 20 stocks, bonds or other securities as defined in section four hundred 21 seventy-five (c)(2) of the Internal Revenue Code, or of commodities as 22 defined in section four hundred seventy-five (e) of the Internal Revenue 23 Code, (E) principally used in the ordinary course of the taxpayer's 24 trade or business of providing investment advisory services for a regu- 25 lated investment company as defined in section eight hundred fifty-one 26 of the Internal Revenue Code, or lending, loan arrangement or loan orig- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14888-01-4S. 8804 2 1 ination services to customers in connection with the purchase or sale 2 (which shall include but not be limited to the issuance, entering into, 3 assumption, offset, assignment, termination, or transfer) of securities 4 as defined in section four hundred seventy-five (c)(2) of the Internal 5 Revenue Code, (F) principally used in the ordinary course of the taxpay- 6 er's business as an exchange registered as a national securities 7 exchange within the meaning of sections 3(a)(1) and 6(a) of the Securi- 8 ties Exchange Act of 1934 or a board of trade as defined in subparagraph 9 one of paragraph (a) of section fourteen hundred ten of the not-for-pro- 10 fit corporation law or as an entity that is wholly owned by one or more 11 such national securities exchanges or boards of trade and that provides 12 automation or technical services thereto, or (G) principally used as a 13 qualified film production facility including qualified film production 14 facilities having a situs in an empire zone designated as such pursuant 15 to article eighteen-B of the general municipal law, where the taxpayer 16 is providing three or more services to any qualified film production 17 company using the facility, including such services as a studio lighting 18 grid, lighting and grip equipment, multi-line phone service, broadband 19 information technology access, industrial scale electrical capacity, 20 food services, security services, and heating, ventilation and air 21 conditioning. For purposes of clauses (D), (E) and (F) of this subpara- 22 graph, property purchased by a taxpayer affiliated with a regulated 23 broker, dealer, registered investment advisor, national securities 24 exchange or board of trade, is allowed a credit under this subdivision 25 if the property is used by its affiliated regulated broker, dealer, 26 registered investment advisor, national securities exchange or board of 27 trade in accordance with this subdivision. For purposes of determining 28 if the property is principally used in qualifying uses, the uses by the 29 taxpayer described in clauses (D) and (E) of this subparagraph may be 30 aggregated. In addition, the uses by the taxpayer, its affiliated regu- 31 lated broker, dealer and registered investment advisor under either or 32 both of those clauses may be aggregated. Provided, however, a taxpayer 33 shall not be allowed the credit provided by clauses (D), (E) and (F) of 34 this subparagraph unless the property is first placed in service before 35 October first, two thousand fifteen and (i) eighty percent or more of 36 the employees performing the administrative and support functions 37 resulting from or related to the qualifying uses of such equipment are 38 located in this state or (ii) the average number of employees that 39 perform the administrative and support functions resulting from or 40 related to the qualifying uses of such equipment and are located in this 41 state during the taxable year for which the credit is claimed is equal 42 to or greater than ninety-five percent of the average number of employ- 43 ees that perform these functions and are located in this state during 44 the thirty-six months immediately preceding the year for which the cred- 45 it is claimed, or (iii) the number of employees located in this state 46 during the taxable year for which the credit is claimed is equal to or 47 greater than ninety percent of the number of employees located in this 48 state on December thirty-first, nineteen hundred ninety-eight or, if the 49 taxpayer was not a calendar year taxpayer in nineteen hundred ninety- 50 eight, the last day of its first taxable year ending after December 51 thirty-first, nineteen hundred ninety-eight. If the taxpayer becomes 52 subject to tax in this state after the taxable year beginning in nine- 53 teen hundred ninety-eight, then the taxpayer is not required to satisfy 54 the employment test provided in the preceding sentence of this subpara- 55 graph for its first taxable year. For purposes of clause (iii) of this 56 subparagraph the employment test will be based on the number of employ-S. 8804 3 1 ees located in this state on the last day of the first taxable year the 2 taxpayer is subject to tax in this state. If the uses of the property 3 must be aggregated to determine whether the property is principally used 4 in qualifying uses, then either each affiliate using the property must 5 satisfy this employment test or this employment test must be satisfied 6 through the aggregation of the employees of the taxpayer, its affiliated 7 regulated broker, dealer, and registered investment adviser using the 8 property. For purposes of clause (A) of this subparagraph, tangible 9 personal property and other tangible property shall not include property 10 principally used by the taxpayer in the production or distribution of 11 electricity, natural gas after extraction from wells, steam, or water 12 delivered through pipes and mains. For purposes of the credit allowed by 13 clause (A) of this subparagraph, for a taxpayer that is an eligible 14 farmer as provided in paragraph (a-1) of this subdivision, the eligible 15 cost of goods shall include the cost of standard construction materials 16 and labor used in the construction of residential housing occupied farm 17 workers employed by the taxpayer to provide labor in the production of 18 the qualifying product produced by the taxpayer, provided such costs 19 satisfy the other requirements of this subparagraph. 20 § 2. Subparagraph (A) of paragraph 2 of subsection (a) of section 606 21 of the tax law, as amended by section 3 of part P of chapter 59 of the 22 laws of 2017, is amended to read as follows: 23 (A) A credit shall be allowed under this subsection with respect to 24 tangible personal property and other tangible property, including build- 25 ings and structural components of buildings, which are: depreciable 26 pursuant to section one hundred sixty-seven of the internal revenue 27 code, have a useful life of four years or more, are acquired by purchase 28 as defined in section one hundred seventy-nine (d) of the internal 29 revenue code, have a situs in this state and are (i) principally used by 30 the taxpayer in the production of goods by manufacturing, processing, 31 assembling, refining, mining, extracting, farming, agriculture, horti- 32 culture, floriculture, viticulture or commercial fishing, (ii) indus- 33 trial waste treatment facilities or air pollution control facilities, 34 used in the taxpayer's trade or business, (iii) research and development 35 property, (iv) principally used in the ordinary course of the taxpayer's 36 trade or business as a broker or dealer in connection with the purchase 37 or sale (which shall include but not be limited to the issuance, enter- 38 ing into, assumption, offset, assignment, termination, or transfer) of 39 stocks, bonds or other securities as defined in section four hundred 40 seventy-five (c)(2) of the Internal Revenue Code, or of commodities as 41 defined in section 475(e) of the Internal Revenue Code, (v) principally 42 used in the ordinary course of the taxpayer's trade or business of 43 providing investment advisory services for a regulated investment compa- 44 ny as defined in section eight hundred fifty-one of the Internal Revenue 45 Code, or lending, loan arrangement or loan origination services to 46 customers in connection with the purchase or sale (which shall include 47 but not be limited to the issuance, entering into, assumption, offset, 48 assignment, termination, or transfer) of securities as defined in 49 section four hundred seventy-five (c)(2) of the Internal Revenue Code, 50 or (vi) principally used as a qualified film production facility includ- 51 ing qualified film production facilities having a situs in an empire 52 zone designated as such pursuant to article eighteen-B of the general 53 municipal law, where the taxpayer is providing three or more services to 54 any qualified film production company using the facility, including such 55 services as a studio lighting grid, lighting and grip equipment, multi- 56 line phone service, broadband information technology access, industrialS. 8804 4 1 scale electrical capacity, food services, security services, and heat- 2 ing, ventilation and air conditioning. For purposes of clauses (iv) and 3 (v) of this subparagraph, property purchased by a taxpayer affiliated 4 with a regulated broker, dealer, or registered investment adviser is 5 allowed a credit under this subsection if the property is used by its 6 affiliated regulated broker, dealer or registered investment adviser in 7 accordance with this subsection. For purposes of determining if the 8 property is principally used in qualifying uses, the uses by the taxpay- 9 er described in clauses (iv) and (v) of this subparagraph may be aggre- 10 gated. In addition, the uses by the taxpayer, its affiliated regulated 11 broker, dealer and registered investment adviser under either or both of 12 those clauses may be aggregated. Provided, however, a taxpayer shall not 13 be allowed the credit provided by clauses (iv) and (v) of this subpara- 14 graph unless (I) eighty percent or more of the employees performing the 15 administrative and support functions resulting from or related to the 16 qualifying uses of such equipment are located in this state, or (II) the 17 average number of employees that perform the administrative and support 18 functions resulting from or related to the qualifying uses of such 19 equipment and are located in this state during the taxable year for 20 which the credit is claimed is equal to or greater than ninety-five 21 percent of the average number of employees that perform these functions 22 and are located in this state during the thirty-six months immediately 23 preceding the year for which the credit is claimed, or (III) the number 24 of employees located in this state during the taxable year for which the 25 credit is claimed is equal to or greater than ninety percent of the 26 number of employees located in this state on December thirty-first, 27 nineteen hundred ninety-eight or, if the taxpayer was not a calendar 28 year taxpayer in nineteen hundred ninety-eight, the last day of its 29 first taxable year ending after December thirty-first, nineteen hundred 30 ninety-eight. If the taxpayer becomes subject to tax in this state after 31 the taxable year beginning in nineteen hundred ninety-eight, then the 32 taxpayer is not required to satisfy the employment test provided in the 33 preceding sentence of this subparagraph for its first taxable year. For 34 the purposes of clause (III) of this subparagraph the employment test 35 will be based on the number of employees located in this state on the 36 last day of the first taxable year the taxpayer is subject to tax in 37 this state. If the uses of the property must be aggregated to determine 38 whether the property is principally used in qualifying uses, then either 39 each affiliate using the property must satisfy this employment test or 40 this employment test must be satisfied through the aggregation of the 41 employees of the taxpayer, its affiliated regulated broker, dealer, and 42 registered investment adviser using the property. For purposes of clause 43 (i) of this subparagraph, tangible personal property and other tangible 44 property shall not include property principally used by the taxpayer in 45 the production or distribution of electricity, natural gas after 46 extraction from wells, steam, or water delivered through pipes and 47 mains. For purposes of the credit allowed by clause (i) of this subpara- 48 graph, for a taxpayer that is an eligible farmer as provided in para- 49 graph one-a of this subsection, the eligible cost of goods shall include 50 the cost of standard construction materials and labor used in the 51 construction of residential housing occupied farm workers employed by 52 the taxpayer to provide labor in the production of the qualifying prod- 53 uct produced by the taxpayer, provided such costs satisfy the other 54 requirements of this subparagraph. 55 § 3. This act shall take effect on the first of January next succeed- 56 ing the date upon which it shall have become a law and shall apply toS. 8804 5 1 tax years commencing on and after such effective date. Effective imme- 2 diately, the addition, amendment and/or repeal of any rule or regulation 3 necessary for the implementation of this act on its effective date are 4 authorized to be made and completed on or before such effective date.
