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Are you in the farming and agriculture industry? As a farmer, you may qualify for certain tax incentives!
These valuable tax credits and other money-saving incentives are for farming operations of all sizes. They provide farmers with additional resources to reinvest in their businesses for improvements and expansion, which strengthens the industry and promotes job security and growth.
You may be eligible for this credit if you or your business:
For more information, see Forms IT-217, Claim for Farmers’ School Tax Credit, and CT-47, Claim for Farmers’ School Tax Credit.
You may be eligible for this credit of $1,200 per eligible farm employee if you are an eligible farmer whose federal gross income from farming for the tax year is at least two-thirds of excess federal gross income.
Farming includes the operation or management of livestock, dairy, poultry, fish, fruit, fur-bearing animal, and vegetable (commonly referred to as truck) farms. Farming also includes the operation or management of plantations, ranches, ranges, and orchards.
For more information, see TSB-M-16(7)C, (5)I, Farm Workforce Retention Credit, and Forms IT-647 and CT-647, Farm Workforce Retention Credit.
You may be able to claim this credit if:
The credit is equal to 25% of the fair market value of qualified donations, with a maximum benefit of $5,000 per year. For more information, see TSB-M-18(4)C, (5)I, Farm Donations to Food Pantries Credit.
You may be eligible for 20% of your qualified investment in property principally used in the production of goods by farming, agriculture, horticulture, floriculture, or viticulture.
For more information see forms IT-212, Investment Credit or Form CT-46, Claim for Investment Tax Credit.
Coming in 2024! You may be eligible for a credit of 118% of additional overtime paid as a result of the phase in of a new 40-hr overtime threshold.
The credit base will be overtime paid for hours worked between the new threshold and 60 hours plus there will be an advanced payment option available through an application to Agriculture & Markets. More details will be released in the coming year.
You may be eligible to claim this credit if:
For more information, see Form IT-212-ATT, Claim for Historic Barn Rehabilitation Credit and Employment Incentive Credit.
To be eligible for this credit, you must meet both of the following requirements:
For more information, see Forms IT-636, Alcoholic Beverage Production Credit, and CT-636, Alcoholic Beverage Production Credit.
You may be eligible to claim a credit for expenditures paid or incurred for the rehabilitation of a historic home located in New York State. To be eligible, you must own and reside in the historic home in the year for which you claim the credit.
To qualify for the credit, the rehabilitation plan for exterior work on the qualified historic home must be certified by a local landmark commission. If the plan includes both interior and exterior work, the plan must be certified by New York State Office of Parks, Recreation and Historic Preservation.
For more information, see Form IT-237, Claim for Historic Homeownership Rehabilitation Credit.
You may be eligible to claim this credit if you or your business own land that is subject to a conservation easement that is held by a public or private conservation agency. This credit is available to individual and business taxpayers. The amount of credit with any limitations is as follows:
For more information, see Forms IT-242, Claim for Conservation Easement Tax Credit, and CT-242, Claim for Conservation Easement Tax Credit.
You may be eligible to claim this credit if:
For more information, see Form IT-255, Claim for Solar Energy System Equipment Credit.
Most property tax exemptions are offered by a local option of the taxing jurisdiction (municipality, county, or school district). Check with your assessor to determine what exemptions are available in your community. The following exemptions are available for farmers:
Agricultural land owners may be eligible for an agricultural assessment to provide property tax relief to them. For more information, see Form RP-305, Agricultural Assessment Application.
New farm buildings—New York’s Real Property Tax Law provides a 10-year property tax exemption for new or reconstructed agricultural structures. The application must be made within one year after the completion of construction work.
For more information, visit our website at www.tax.ny.gov (search: Farm Building Exemption).
A limited tax exemption is available for increases in the assessed valuation on historic barns. Eligibility is determined by the local assessor or board of assessors with whom the application is filed.
For more information, see Publication 1094, Farm Building Exemptions, Questions & Answers.
Farmers and commercial horse boarding operators can buy certain items and services without paying state and local sales or use taxes. To make qualifying purchases without paying sales tax, complete Form ST-125, Farmer’s and Commercial Horse Boarding Operator’s Exemption Certificate.
For more information, see Tax Bulletin, TB-ST-244, Exemptions for Farmers and Commercial Horse Boarding Operators.
You may be eligible to subtract 15% of net farm income included in federal adjusted gross income if you are a farmer or farm business with less than $250,000 in net farm income.
For more information see the instructions for Form IT-225, New York State Modifications.
You are engaged in the business of farming if you cultivate, operate, or manage a farm for gain or profit, even though the operation may not produce a profit every year. You may also be a farmer if you are also engaged in the business of farming if you rent your farm property to another person.
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