Supporting New York Farmers with the Investment Tax Credit

New York farmers form the backbone of our state's agricultural industry, providing fresh produce, dairy, and more to our communities. As a business that proudly serves the agricultural community, Dragoon's Farm Equipment is dedicated to helping farmers succeed—not just through top-tier equipment but also by keeping them informed about valuable resources and opportunities. One such opportunity is the Investment Tax Credit (ITC), a program designed to encourage investments in farming operations.

What is the Investment Tax Credit?

The NYS Investment Tax Credit is a financial incentive aimed at supporting New York State farmers by making it more affordable to invest in equipment, structures, and other essential assets. Eligible taxpayers can claim a percentage of their investments as a refundable credit on their New York State tax return, providing critical support for long-term growth and sustainability.

Benefits of the ITC for Farmers

Farming is capital-intensive, requiring substantial investments in machinery, equipment, and infrastructure. The ITC helps offset these costs, allowing farmers to:

• Upgrade Equipment: Invest in modern, efficient machinery that boosts productivity and reduces operational costs.
• Expand Operations: Build or renovate barns, storage facilities, and other structures to support growing needs.
• Enhance Sustainability: Adopt eco-friendly technologies and practices that benefit both the farm and the environment.

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According to https://www.tax.ny.gov/pit/credits/investment_tax_credit.htm

Eligible Farmers

• If you are an eligible farmer, you may qualify to claim 20% of the investment credit base on qualifying property placed in service on or after 4/1/2022. For more information, see Investment tax credit: eligible farmers income test.
• If you are an eligible farmer, you may claim a refund of the unused credit earned on property placed in service on or after 1/1/2023.

Note: If you are an eligible fiscal-year farmer, you may elect to claim this refund on either an original or amended fiscal-year 2022 return if the property was placed into service on or after January 1, 2023, and before the end of your 2022 fiscal year. To elect to claim this refund for your 2022 fiscal year, file your original or amended tax return using the following updated 2022 credit claim form instructions.

• See Form IT-212-I updates at Personal income tax forms corrections and changes for 2022 (Articles 22 and 30).
• See Form CT-46-I updates at Corporation tax forms corrections and changes for 2022 (Articles 9, 9-A, 13, and 33).

Recordkeeping requirements

Taxpayers must prove entitlement to tax credits. During the course of an audit, you may be required to provide documentation to substantiate entitlement based on the specific facts of your tax credit claim. See Investment tax credit recordkeeping requirements for more information on the recordkeeping requirements for this credit.

Additional information

• Form-CT-46, Claim for Investment Tax Credit, and its instructions (for corporations)
• Form IT-212, Investment Credit, and its instructions (for all others)

Learn about other New York State tax credits available to businesses, see Business incentives.

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Dragoon's Farm Equipment: Your Partner in Success

At Dragoon's Farm Equipment, we understand the challenges farmers face, from tight margins to unpredictable weather. That’s why we’re here to support you every step of the way. Whether you’re looking for cutting-edge tractors, implements, or precision farming tools, our team can help you find the right solutions for your needs—and make the most of programs like the ITC.

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Disclaimer: This article is for informational purposes only and should not be considered tax or financial advice. Farmers are strongly encouraged to consult with a qualified tax professional to fully understand the Investment Tax Credit and its applicability to their individual circumstances.

Together, we can ensure New York’s farmers continue to thrive for generations.