New York A 1947: Establishes a farm savings account program

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A01947 Summary:

BILL NOA01947 

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SAME ASNo Same As

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SPONSORMaher

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COSPNSRBrown E, Bendett, DeStefano, Lemondes, Brabenec, McDonough, Hawley

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MLTSPNSR

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Add §50, amd §§612, 209 & 601, Tax L

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Establishes a farm savings account program.

Go to top A01947 Actions:

BILL NOA01947 

&nbsp

01/14/2025referred to ways and means

01/07/2026referred to ways and means

Go to topA01947 Committee&nbspVotes:

Go to topA01947 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA01947 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 1947

 2025-2026 Regular Sessions

 IN ASSEMBLY

 January 14, 2025
 ___________

 Introduced by M. of A. MAHER, E. BROWN, BENDETT, DeSTEFANO, LEMONDES,
 BRABENEC, McDONOUGH, HAWLEY -- read once and referred to the Committee
 on Ways and Means

 AN ACT to amend the tax law, in relation to farm savings accounts

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. The tax law is amended by adding a new section 50 to read
 2 as follows:
 3 § 50. Farm savings accounts. 1. Definitions. (a) Qualified farmer. For
 4 purposes of this section, the term "qualified farmer" means, with
 5 respect to any taxable year, any individual who, during such year, was
 6 engaged in the trade or business of farming.
 7 (b) Farm savings account. For purposes of this section, the term "farm
 8 savings account" means a trust created or organized in the United States
 9 as a farm savings account exclusively for the purpose of making quali-
 10 fied distributions for purposes of farm sustainability, but only if the
 11 written governing instrument creating the trust meets the following
 12 requirements:
 13 (i) No contribution will be accepted unless it is in cash.
 14 (ii) The trustee is a bank, credit union or other appropriate institu-
 15 tion that demonstrates administration of the trust in a manner that is
 16 consistent with the requirements of this section.
 17 (iii) The assets of the trust will not be commingled with other prop-
 18 erty except in a common trust fund or common investment fund.
 19 (iv) The interest of an individual in the balance in such individual's
 20 account is nonforfeitable.
 21 (c) Qualified distribution. The term "qualified distribution" means
 22 any amount paid from a farm savings account to the account beneficiary
 23 exclusively for purposes of farm sustainability.

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD04960-01-5

 A. 1947 2

 1 (d) Account beneficiary. The term "account beneficiary" means the
 2 individual or business on whose behalf the farm savings account was
 3 established.
 4 2. Program description. (a) Deductions allowed. In the case of a qual-
 5 ified farmer, there shall be allowed as a deduction for the taxable year
 6 an amount equal to the aggregate amount paid in cash during such taxable
 7 year by or on behalf of such individual to a farm savings account of
 8 such individual.
 9 (b) Contribution requirement. There shall be no minimum or maximum
 10 contribution requirement. However, aggregate contributions may not
 11 exceed total income derived from farming during a given taxable year.
 12 (c) Tax treatment of accounts. A farm savings account is exempt from
 13 taxation under this chapter unless such account has ceased to be a farm
 14 savings account.
 15 (d) Termination of accounts. If the account beneficiary ceases to
 16 engage in the trade or business of farming, all farm savings accounts of
 17 such individual shall cease to be such accounts and the balance of all
 18 such accounts shall be treated as (i) distributed to such individual,
 19 and (ii) not paid in a qualified distribution.
 20 (e) Tax treatment of distributions. (i) General. In general, any
 21 amount paid or distributed out of a farm savings account shall be
 22 included in gross income.
 23 (ii) Additional tax on non-qualified distributions. (1) In addition to
 24 any other tax imposed by this chapter, any non-qualified distribution
 25 from a farm savings account shall be subject to a fifteen percent
 26 surcharge on the amount of such non-qualifying distribution.
 27 (2) Claus