State Sen. George Borrello is backing a proposal to ensure farmers can take advantage of a tax credit program when they build housing for farm workers.

Legislation introduced recently by Sen. James Tedisco, R-Clifton Park, would amend the state tax laws so that tax credits for construction materials and labor used to build residential housing occupied by farm workers can be claimed by farm owners.

“While businesses that make investments in buildings, machinery, or equipment receive the Investment Tax Credit (ITC), the tax code is silent on this credit being applied to buildings, machinery, and equipment dedicated to the building of residential housing for farm workers,” Tedisco wrote in his legislative justification. “This measure provides clarity in the law and enables farms to utilize this credit in the construction of residential housing for farm workers, and simultaneously addresses the housing shortage that exists in New York state.”

Borrello has signed on as an early co-sponsor of the legislation. The costs associated with building farmworker housing have been raised as concerns by members of the Chautauqua County Farm Bureau, particularly as new state guidelines have driven up the costs. Borrello said the concerns he has heard from constituents across the district are a reason he supports Tedisco’s bill. The state Farm Bureau supports expanding the state Refundable Investment Tax Credit for farms including construction expenses for labor housing as well as a permanent real property tax exemption of seasonal farmworker housing and the expansion of the exemption to include year-round farmworker housing.

“While businesses that make investments in buildings or other capital needs are eligible for the Investment Tax Credit, the tax code doesn’t extend this credit to farms that construct residential housing for farm workers. As residential housing is often an essential part of farm operations, this is an unfair exclusion, which is why I support legislation that would correct this oversight,” Borrello said when contacted by The Post-Journal. “The governor and legislature’s majorities have enacted several policies that are hurting the ability of our farmers to stay afloat. Joining us in supporting this bill would be one way they can help ease the financial burdens facing our farmers.”

The state Farm Bureau is lobbying state lawmakers for even more help with farmworker housing than Tedisco and Borrello are proposing. Its 2024 state policy book includes requests for the state to increase funding for a loan program between the agricultural community and the State Division of Housing and Community Renewal for the development of new agricultural labor housing and the improvement of existing housing as well as the development of cost sharing opportunities with state-backed money, such as the Community Housing Block Grant fund, to add additional and/or improve current agricultural labor housing to allow for better COVID virus control.

The bureau also opposes any changes to the regulations for spacing requirements for farmworker housing and requests that New York State follow the current space requirements.