A 1961: Establishes 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 ________________________________________________________________________ 1961 2025-2026 Regular Sessions  IN ASSEMBLY January 14, 2025 ___________ Introduced by M. of A. MAHER, E. BROWN, BRABENEC, McDONOUGH -- read once and referred to the Committee on Ways and Means 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 50 to read 2 as follows: 3 § 50. 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 twen- 8 ty-six. 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 into USDA organic certification, under the Whole Foods Market 15 IP. L.P. "responsibly grown" labelling program, or under the QAI and 16 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 21 amount, any amount of credit thus not deductible in such taxable year 22 shall be treated as an overpayment of tax to be credited or refunded in 23 accordance with the provisions of section one thousand eighty-six of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04816-01-5 
 A. 1961 2 1 this chapter. Except as provided in subsection (c) of section one thou- 2 sand eighty-eight of this chapter, no interest shall be paid thereon. 3 § 2. The tax law is amended by adding a new section 187-s to read as 4 follows: 5 § 187-s. Certified transitional tax credit. (a) Allowance of credit. A 6 taxpayer, who is subject to tax under this article, article nine-A or 7 twenty-two of this chapter shall be allowed a refundable credit against 8 such tax to be computed as provided in this section, for the tax imposed 9 by this article for taxable years after January first, two thousand 10 twenty-six. 11 (b) Value of credit. The amount of such credit shall be equal to twen- 12 ty-five percent of the total pounds of goods sold under an eligible 13 program under subdivision (c) of this section, multiplied by one-half. 14 (c) Eligible programs. Taxpayers that wish to claim this credit must 15 demonstrate their agricultural products were sold during a period of 16 transition into USDA organic certification, under the Whole Foods Market 17 IP. L.P. "responsibly grown" labelling program, or under the QAI and 18 Hesco, Inc. "certified transitional" label. 19 (d) Application of credit. The credit allowed under this section for 20 any taxable year shall not reduce the tax due for such year to less than 21 the minimum tax fixed by this article. However, if the amount of credit 22 allowed under this section for any taxable year reduces the tax to such 23 amount, any amount of credit thus not deductible in such taxable year 24 shall be treated as an overpayment of tax to be credited or refunded in 25 accordance with the provisions of section one thousand eighty-six of 26 this chapter. Except as provided in subsection (c) of section one thou- 27 sand eighty-eight of this chapter, no interest shall be paid thereon. 28 § 3. Section 210-B of the tax law is amended by adding a new subdivi- 29 sion 61 to read as follows: 30 61. Certified transitional tax credit. (a) Allowance of credit. A 31 taxpayer, who is subject to tax under article nine, nine-A, or twenty- 32 two of this chapter shall be allowed a refundable credit against such 33 tax to be computed as provided in this subdivision, for the tax imposed 34 by this article for taxable years after January first, two thousand 35 twenty-six. 36 (b) Value of credit. The amount of such credit shall be equal to twen- 37 ty-five percent of the total pounds of goods sold under an eligible 38 program under paragraph (c) of this subdivision, multiplied by one-half. 39 (c) Eligible programs. Taxpayers that wish to claim this credit must 40 demonstrate their agricultural products were sold during a period of 41 transition into USDA organic certification, under the Whole Foods Market 42 IP. L.P. "responsibly grown" labelling program, or under the QAI and 43 Hesco, Inc. "certified transitional" label. 44 (d) Application of credit. The credit allowed under this subdivision 45 for any taxable year shall not reduce the tax due for such year to less 46 than the minimum tax fixed by this article. However, if the amount of 47 credit allowed under this subdivision for any taxable year reduces the 48 tax to such amount, any amount of credit thus not deductible in such 49 taxable year shall be treated as an overpayment of tax to be credited or 50 refunded in accordance with the provisions of section one thousand 51 eighty-six of this chapter. Except as provided in subsection (c) of 52 section one thousand eighty-eight of this chapter, no interest shall be 53 paid thereon. 54 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 55 of the tax law is amended by adding a new clause (lii) to read as 56 follows: 
 A. 1961 3 1 (lii) Certified transitional Amount of credit under 2 tax credit under section subdivision sixty-one of 3 fifty section two hundred ten-B 4 § 5. This act shall take effect January 1, 2026, and shall apply to 5 taxable years beginning on or after such date, and shall expire January 6 1, 2032 when upon such date the provisions of this act shall be deemed 7 repealed. Effective immediately, the addition, amendment and/or repeal 8 of any rule or regulation by the department of agriculture and markets, 9 in conjunction with the department of taxation and finance that is 10 necessary for the implementation of this act on its effective date are 11 authorized to be made and completed on or before such effective date.