Bill > A01947

This bill establishes a farm savings account program designed to provide financial support and tax benefits for farmers. Under the proposed legislation, qualified farmers can create special savings accounts specifically for farm sustainability purposes, with no minimum or maximum contribution requirements, though total contributions cannot exceed the farmer's annual farming income. These accounts would be administered by banks or credit unions and offer several tax advantages: contributions are tax-deductible, the accounts are exempt from taxation, and funds can be used exclusively for farm-related expenses. However, if a farmer stops engaging in farming, the account will be terminated, and any non-qualified distributions will be subject to a 15% surcharge. The accounts have specific rules about rollovers, transfers during divorce, and inheritance, ensuring flexibility while maintaining the program's intended purpose of supporting agricultural businesses. The bill also amends existing tax law to integrate these farm savings accounts into the current tax framework, making them a new tool for farmers to manage financial risks and invest in their agricultural operations.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A1947