Wednesday, October 12, 2016

Farmers Reminded of Tax Breaks on #NationalFarmersDay

 
In celebration of National Farmers Day, the New York State Tax Department and the New York State Department of Agriculture and Markets remind farmers of money-saving tax credits available to them. These credits provide farmers with additional resources to reinvest in their businesses for improvements and expansion, which strengthens the industry and promotes job security and growth.

“Today, October 12, is National Farmers Day, a great day to celebrate our New York State farmers and to highlight valuable tax breaks for them,” said Acting Tax Commissioner Nonie Manion. “These credits put money back into the pockets of farmers to use on their land or machinery—to help them grow their businesses.”

State Agriculture Commissioner Richard A. Ball said, “As a farmer and as Agriculture Commissioner, I know how important these tax credits can be to farming operations of all sizes. As we celebrate National Farmers Day, I encourage all New York State farmers to learn more about these credits and take advantage of the savings.”

Whether they’re producing alcoholic beverages, restoring historic barns, or own land that is subject to a conservation easement, farmers may qualify for a variety of tax credits.

Beginning next year, farm employers will benefit from the newly introduced Farm Workforce Retention Credit. The credit is equal to a fixed-dollar amount for each eligible farm employee. The credit will be phased in to include annual increases through 2021.

Historic barns that are reconstructed or rehabilitated and meet certain other requirements may qualify for a property tax exemption for 10 years. The exemption, which localities have the option to offer, is worth 100% of any increase in assessed value that results from the revitalization. Historic barn owners are encouraged to check with their local property assessor to ensure that the exemption is available in their community.

Farmers might also be eligible for property tax relief with an agricultural assessment. In addition, property tax exemptions for agricultural buildings, temporary or permanent, can help reduce the cost of owning agricultural land. Farm buildings include agricultural and horticultural buildings, historic barns, greenhouses, solar or wind energy systems, farm waste energy systems, and more.

Individuals and businesses might also be eligible for the conservation easement credit. The land must be subject to a conservation easement that is held by a public or private conservation agency to qualify. The credit is worth 25% of the school district, county, and town real property taxes paid during the tax year. The maximum value of the credit is $5,000 each tax year.

The recently expanded Alcoholic Beverage Production Credit now covers the production of cider, wine, and liquor, in addition to beer. This credit will help craft beverage manufacturers— including farm-based wineries, breweries, distilleries, and cideries—save money and expand their operations.

In addition to credits, farmers are eligible for a sales tax break when they purchase items such as machinery, equipment, and supplies used predominantly in farm production. 

Source: New York State Department of Taxation and Finance

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