A Guide for Understanding New York State Land Credits

As we navigate the complexities of tax season, it's essential to stay informed about the various credits and deductions available to you. One such benefit is the Farmers School Tax Credit (FSTC), a valuable resource for those engaged in the business of farming. This blog aims to provide a high-level overview of the FSTC and Manufacturer’s real property tax credit to ensure you have the information needed to maximize your tax savings.

What is the Farmers School Tax Credit?

The Farmers School Tax Credit is a refundable credit available to qualified farmers who have paid school district property taxes on qualified agricultural property. This credit is designed to alleviate some of the financial burdens associated with property taxes, allowing farmers to reinvest in their operations and continue contributing to our agricultural community.

Eligibility Criteria

To qualify for the FSTC, you or your business must meet the following criteria:

• Be actively engaged in the business of farming.
• Have paid school district property taxes on qualified agricultural property.
• Generally, have two-thirds of your gross income derived from farming.

The amount of the credit depends on the number of qualified acres and the total amount of school district property taxes paid.

What is the Manufacturer’s Real Property Tax Credit?

The Manufacturer’s real property tax credit is a 20% refundable credit available to qualified manufacturers (including farmers) who have paid eligible real property taxes, typically on town, county, village or city taxes.

Eligibility Criteria

To qualify for the Manufacturer’s Real Property Tax Credit, you or your business must meet the following criteria:

• Be considered a qualified manufacturer by deriving the majority of your income from manufacturing, which includes farming.
• Have paid real property taxes on property located in the state that is principally used for manufacturing, including farming.

Conclusion

The FSTC and the Manufacturer’s Real Property Tax Credit are valuable tools for reducing your tax burden and supporting your farming operations. By understanding the eligibility criteria, completing the necessary documentation, and seeking professional advice when needed, you can make the most of this credit.

For current Farm Credit East tax customers, sending along the following information through our secure online portal, Farm Credit Connect, as it is received will help us facilitate these credits on your tax returns:

• A copy of your paid school tax bills.
• If not already provided, we also need the county, city, town and/or village bills paid in January 2024.

At Farm Credit East, we are committed to helping you navigate the complexities of tax season and achieve financial success. If you have any questions or need assistance with your FSTC, please don't hesitate to reach out to our team. We're here to support you every step of the way.