BILL NUMBER: S8862
SPONSOR: HINCHEY
 
TITLE OF BILL:
An act to amend the tax law, in relation to providing a tax credit for
sales or rentals of agricultural assets to beginning farmers; and to
amend the agriculture and markets law, in relation to establishing
duties of the commissioner of agriculture and markets with respect ther-
eto
 
PURPOSE:
To provide a tax credit for sales or rentals of agricultural assets to
beginning farmers and establish the duties of the commissioner of agri-
culture and markets.
 
SUMMARY OF PROVISIONS:
Section 1: Establishes the title as the "New York farmland preservation
act".
Section 2: Amends the tax law by adding a new section 48 for the purpose
of defining an owner of agricultural assets deemed eligible for the New
York farmland preservation act.
Section 3: Amends section 210-B of the Tax Law by adding a new subdivi-
sion 59 to establish a tax credit for owners of agricultural assets.
Section 4: Amends section 606 of the tax law with the addition of a
credit for owners of agricultural assets and a definition of the credit
amount.
Section 5: Amends section 606 of the tax law by adding a new subsection
000 to allow the application of a tax credit based on the taxpayer's
assessment for that year.
Section 6: Amends the agriculture and markets law by adding a new subdi-
vision 53 which would establish a certification program in which eligi-
bility is determined for the owners of agricultural assets that are
seeking a tax credit.
Section 7: Effective date.
 
JUSTIFICATION:
The average age of a New York farmer is 65 years old and as older gener-
ations of farmers continue to retire, acres of farmland in our state are
at risk of irreplaceable loss. Over 253,000 acres of New York's agricul-
tural land were developed or converted between 2001 and 2016 because of
heightened development pressure alongside difficulty finding new or
beginning farmers willing to take over the land. This heightened devel-
opment threatens the entire agricultural market, one of the state's most
dominant industries, and jeopardizes our economy and our local food
security.
The greatest barrier beginning farmers face is access to land and opera-
tional assets. The New York Farmland Preservation Act incentivizes older
farmers and non-farming landowners to preserve and protect land by
offering a tax credit for making both farmland and operational assets
available to beginning farmers. Black, indigenous, and other people of
color (BIPOC) have faced historic and ongoing discrimination and dispos-
session of land. This legislation recognizes the need for racial equity
in the next generation of farmers by providing an additional incentive
to landowners if they rent or sell farmland to a beginning farmer that
meets the definition of socially disadvantaged. By promoting the sale or
rental of farmland and agricultural assets from one generation to anoth-
er, the New York Farmland Preservation Act ensures the continued
production of locally-sourced, fresh food and the expansion of new farms
throughout the State.
 
LEGISLATIVE HISTORY:
2021-22: S.6078-A / A.8452 - Referred to. Investigations and Government
Operations / Referred to Ways and Means
2023-24: S.1680 - Referred to Investigations and Government Operations
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on or after January 1, 2026.

Statutes affected:
S8862: 210-B tax law, 606 tax law, 606(i) tax law, 16 agriculture and markets law