Bill > A01961

This bill establishes a new refundable tax credit for agricultural producers transitioning to organic certification, specifically targeting farmers participating in specific labeling programs. The tax credit, which will be available starting January 1, 2026, allows taxpayers subject to certain state tax articles to claim a credit equal to 25% of the total pounds of goods sold under eligible transition programs, multiplied by one-half. Eligible programs include agricultural products sold during transition to USDA organic certification, those under the Whole Foods Market "responsibly grown" labeling program, and those under the QAI and Hesco, Inc. "certified transitional" label. The credit is designed to support farmers during the often financially challenging process of transitioning to organic production, which typically takes several years and involves increased costs and reduced yields. The bill applies to multiple tax articles and ensures that the credit cannot reduce a taxpayer's tax liability below the minimum tax, with any excess credit treated as an overpayment to be refunded. The tax credit will expire on January 1, 2032, providing a six-year window for agricultural producers to benefit from this financial incentive.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A1961