BILL NUMBER: S1529A
SPONSOR: PARKER
 
TITLE OF BILL:
An act to amend the agriculture and markets law and the tax law, in
relation to enacting the carbon farming act
 
PURPOSE OF THE BILL:
To create new financial incentives for land management practices under-
taken by farmers that help improve soil health and reduce greenhouse gas
emissions, making New York a leader in promoting new agricultural strat-
egies that combat climate change.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Names the act the "Carbon Farming Act".
§ 2: adds a new subdivision 5 to section 150 of the Agriculture and
Markets Law to define "carbon farming".
§ 3: adds a new Article 11-C to the Agriculture and Markets Law estab-
lishing the Carbon Farming Act.
Section 151-p: Legislative findings and intent
Section 151-q: Definitions
Section 151-r: Establishes a Carbon Farming Certification Committee to
develop a certification framework, list of qualified carbon removal
practices eligible for the carbon farming tax credit, and certification
standards.
Section 151-s. Establishes the approval process of Carbon Farming
Certification for the purpose of administering the Carbon Farming Tax
Credit.
Section 151-t: Directs the Department of Agriculture and Markets, in
cooperation with the Department of Environmental Conservation, the State
Soil and Water Conservation Committee, and the New York State College of
Agriculture and Life Sciences to develop educational materials to
encourage carbon farming and promote the Carbon Farming Tax Credit.
§ 4: adds a new subdivision 63 to section 210-B of the Tax Law to create
a Carbon Farming Tax Credit.
§ 5: adds a new subsection (uuu) to section 606 of the Tax Law to create
a Carbon Farming Tax Credit.
§ 6: amends paragraph (a-1) to subdivision 1 of section 210-B of the Tax
Law to allow an additional 10% tax credit on top of the existing Invest-
ment Tax Credit if the property is principally used for the purposes of
carbon farming.
§ 7: amends paragraph 1-a to subsection (a) of section 606 of the Tax
Law to allow an additional 10% tax credit on top of the Investment Tax
Credit if the property is principally used for the purposes of carbon
farming.
§ 8: Effective date.
 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION:
This amendment established a Carbon Farming Certification Committee
tasked with developing a certification framework, list of qualified
carbon removal practices eligible for the carbon farming tax credit, and
certification standards for the purposes of administering the Carbon
Farming Tax Credits. The amendment also creates a Carbon Farming Educa-
tion program. Finally, the amendment includes a new adder to the exist-
ing Investment Tax Credit if the property is principally used for the
purposes of carbon farming.
 
JUSTIFICATION:
Agriculture is the only sector that has the potential to be carbon net-
negative. Carbon farming is a win-win-win approach for farmers, the
environment, and the state - these time-honored agricultural practices
significantly improve productivity, yield, and resiliency for farmers
while increasing carbon sequestration in soils and biomass and mitigat-
ing greenhouse gas emissions. The state cannot meet our climate goals by
reducing emissions alone, we need to increase the amount of carbon
sequestered by supporting farmers with incentives.
This bill creates a Carbon Farming Tax Credit, encouraging farmers to
implement carbon farming practices, as well as an additional 10% adder
to the existing 20% Investment Tax Credit if the property is principally
used for the purposes of carbon farming. A Carbon Farming Certification
Committee is established to develop a certification framework for the
carbon farming tax credit, list of qualified carbon removal practices
eligible for the carbon fanning tax credit, and certification standards.
 
PRIOR LEGISLATIVE HISTORY:
2023-2024: A.5919/S4270-A - Referred to Agriculture/Passed Senate
2021-2022: A.2042/S.4707 - Referred to Agriculture/Passed Senate
2019-2020: A.2718 - Referred to Agriculture
2017-2018: A.3281 - Referred to Agriculture
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined
 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law. Effective immediately, the addition, amendment,
and/or repeal of any rule or regulation necessary for the implementation
of this act on its effective date are authorized to be made and
completed on or before such effective date.

Statutes affected:
S1529: 150 agriculture and markets law, 210-B tax law, 606 tax law, 3-0301 environmental conservation law, 3-0301(2) environmental conservation law, 16 agriculture and markets law
S1529A: 150 agriculture and markets law, 210-B tax law, 606 tax law, 210-B(1) tax law, 606(a) tax law