A 5586: Creates a quarterly advance payment schedule for the farm employer overtime tax credit.

  
  STATE OF NEW YORK ________________________________________________________________________ 5586 2025-2026 Regular Sessions  IN ASSEMBLY February 18, 2025 ___________ Introduced by M. of A. BAILEY -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to advance payments of a portion of the farm employer overtime tax credit The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraphs 1 and 2 of subdivision (h) of section 42-a of 2 the tax law, as added by section 2 of subpart C of part B of chapter 59 3 of the laws of 2022, are amended to read as follows: 4 (1) (i) Taxpayers shall have the option to request an advance payment 5 of the portion of the amount of tax credit they are allowed under this 6 section for the amount of eligible overtime that the farm employer paid 7 from January first through [July] March thirty-first. To be eligible for 8 the advance payment, the farm employer must submit by [September thirti- 9 eth] May thirty-first a properly completed application to the department 10 of agriculture and markets, in a form prescribed by the commissioner of 11 agriculture and markets, that demonstrates how much the farm employer 12 paid in eligible overtime during that period. 13 (ii) Taxpayers shall have the option to request an advance payment of 14 the portion of the amount of tax credit they are allowed under this 15 section for the amount of eligible overtime that the farm employer paid 16 from April first through June thirtieth. To be eligible for the advance 17 payment, the farm employer must submit by August thirty-first a properly 18 completed application to the department of agriculture and markets, in a 19 form prescribed by the commissioner of agriculture and markets, that 20 demonstrates how much the farm employer paid in eligible overtime during 21 that period. 22 (iii) Taxpayers shall have the option to request an advance payment of 23 the portion of the amount of tax credit they are allowed under this 24 section for the amount of eligible overtime that the farm employer paid 25 from July first through September thirtieth. To be eligible for the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09588-01-5 
 A. 5586 2 1 advance payment, the farm employer must submit by November thirtieth a 2 properly completed application to the department of agriculture and 3 markets, in a form prescribed by the commissioner of agriculture and 4 markets, that demonstrates how much the farm employer paid in eligible 5 overtime during that period. 6 (iv) After reviewing a farm employer's completed application for the 7 advance payment of a portion of the amount of tax credit allowed under 8 this section, the department of agriculture and markets may issue to 9 that farm employer a certificate of tax credit that specifies the exact 10 amount of the tax credit under this article that a taxpayer may claim as 11 an advance payment pursuant to this subdivision. 12 (2) (i) A taxpayer must submit a request to the department in the 13 manner prescribed by the commissioner after it has been issued a certif- 14 icate of tax credit by the department of agriculture and markets pursu- 15 ant to subparagraph (i) of paragraph one of this subdivision (or such 16 certificate has been issued to a partnership, limited liability company 17 or subchapter S corporation in which it is a partner, member or share- 18 holder, respectively, that is a farm employer), but such request must be 19 submitted no later than [November] July first of the taxable year for 20 which the credit is being claimed. 21 (ii) A taxpayer must submit a request to the department in the manner 22 prescribed by the commissioner after it has been issued a certificate of 23 tax credit by the department of agriculture and markets pursuant to 24 subparagraph (ii) of paragraph one of this subdivision (or such certif- 25 icate has been issued to a partnership, limited liability company or 26 subchapter S corporation in which it is a partner, member or sharehold- 27 er, respectively, that is a farm employer), but such request must be 28 submitted no later than October first of the taxable year for which the 29 credit is being claimed. 30 (iii) A taxpayer must submit a request to the department in the manner 31 prescribed by the commissioner after it has been issued a certificate of 32 tax credit by the department of agriculture and markets pursuant to 33 subparagraph (iii) of paragraph one of this subdivision (or such certif- 34 icate has been issued to a partnership, limited liability company or 35 subchapter S corporation in which it is a partner, member or sharehold- 36 er, respectively, that is a farm employer), but such request must be 37 submitted no later than January first of the calendar year following the 38 taxable year for which the credit is being claimed. 39 (iv) For those taxpayers who have requested an advance payment pursu- 40 ant to subparagraphs (i), (ii), or (iii) of this paragraph and for whom 41 the commissioner has determined to be eligible for this credit, the 42 commissioner shall advance a payment of the portion of the amount of tax 43 credit allowed to the taxpayer. The taxpayer will claim on the taxpay- 44 ers' return for the taxable year the portion of the amount of tax credit 45 allowed for eligible overtime paid by the farm employer from [August] 46 October first through December thirty-first. The taxpayer must properly 47 reconcile the advance payment of tax credit allowed under this subdivi- 48 sion on the taxpayer's return. 49 § 2. This act shall take effect January 1, 2027.