Bill Text: NY A06492 | 2019-2020 | General Assembly | Introduced
Bill Title: Establishes a tax credit for grocery donations to food pantries.
Spectrum: Partisan Bill (Democrat 11-0)
Status: (Introduced - Dead) 2020-02-11 - enacting clause stricken [A06492 Detail]
Download: New_York-2019-A06492-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6492 2019-2020 Regular Sessions IN ASSEMBLY March 8, 2019 ___________ Introduced by M. of A. ROMEO, RODRIGUEZ, LUPARDO, WILLIAMS, ARROYO, SAYEGH -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to establishing a tax credit for grocery donations to food pantries The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 210-B of the tax law is amended by adding a new 2 subdivision 53 to read as follows: 3 53. Credit for grocery donations to food pantries. (a) General. In 4 the case of an eligible taxpayer there shall be allowed a tax credit to 5 be computed as hereinafter provided against the tax imposed by this 6 article for taxable years beginning on and after January first, two 7 thousand twenty-one. The amount of the tax credit shall be twenty-five 8 percent of the wholesale value of the eligible taxpayer's qualified 9 donations made to any eligible food pantry during the taxable year, not 10 to exceed a cumulative amount of tax credits under this section of five 11 thousand dollars per taxable year. 12 (b) Qualified donation. For purposes of this subdivision, the term 13 "qualified donation" means a donation of apparently wholesome food, as 14 defined in section 170(e)(3)(C)(vi) of the internal revenue code, that 15 is surplus or about-to-waste food, including, but not limited to, 16 fruits, vegetables, meats, poultry, eggs, dairy products or other 17 natural and processed products offered for sale for human or animal 18 consumption. 19 (c) Eligible taxpayer. For purposes of this subdivision, the term 20 "eligible taxpayer" means a grocery store, food broker, wholesaler, 21 restauranteur, or catering service. 22 (d) Eligible food pantry. For purposes of this subdivision, the term 23 "eligible food pantry" means food pantry, food bank, or other emergency 24 food program operating within this state that has qualified for tax 25 exemption under section 501(c)(3) of the internal revenue code. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06974-03-9A. 6492 2 1 (e) Determination of wholesale value. For purposes of this subdivi- 2 sion, to determine the wholesale value of apparently wholesome food 3 donated to an eligible food pantry, the standards set forth under 4 section 170 (e)(3)(C)(v) of the internal revenue code shall apply. 5 (f) Record of donation. To claim a credit under this subdivision, an 6 eligible taxpayer must get and keep a receipt from the eligible food 7 pantry showing: (1) the name of the eligible food pantry; (2) the date 8 and location of the qualified donation; and (3) a reasonably detailed 9 description of the qualified donation. A letter or other written commu- 10 nication from the eligible food pantry acknowledging receipt of the 11 contribution and containing the information in subparagraphs one, two, 12 and three of this paragraph will serve as a receipt. Any local food 13 pantry may accept or reject any donation of food made under this section 14 for any reason. For purposes of this section, any donations of food 15 accepted by a local food pantry shall be valued at wholesale value. 16 (g) Application of credit. The credit allowed under this subdivision 17 for any taxable year will not reduce the tax due for such year to less 18 than the amount prescribed in paragraph (d) of subdivision one of 19 section two hundred ten of this article. However, if the amount of 20 credit allowed under this subdivision for any taxable year reduces the 21 tax to such amount or if the taxpayer otherwise pays tax based on the 22 fixed dollar minimum amount, any amount of credit thus not deductible in 23 such taxable year will be treated as an overpayment of tax to be credit- 24 ed or refunded in accordance with the provisions of section one thousand 25 eighty-six of this chapter. Provided, however, the provisions of 26 subsection (c) of section one thousand eighty-eight of this chapter 27 notwithstanding, no interest will be paid thereon. 28 § 2. Section 606 of the tax law is amended by adding a new subsection 29 (jjj) to read as follows: 30 (jjj) Credit for grocery donations to food pantries. (a) General. In 31 the case of an eligible taxpayer there shall be allowed a tax credit to 32 be computed as hereinafter provided against the tax imposed by this 33 article for taxable years beginning on and after January first, two 34 thousand twenty-one. The amount of the tax credit shall be twenty-five 35 percent of the wholesale value of the eligible taxpayer's qualified 36 donations made to any eligible food pantry during the taxable year, not 37 to exceed a cumulative amount of tax credits under this section of five 38 thousand dollars per taxable year. 39 (b) Qualified donation. For purposes of this subdivision, the term 40 "qualified donation" means a donation of apparently wholesome food, as 41 defined in section 170(e)(3)(C)(vi) of the internal revenue code, that 42 is surplus or about-to-waste food, including, but not limited to, 43 fruits, vegetables, meats, poultry, eggs, dairy products or other 44 natural and processed products offered for sale for human or animal 45 consumption. 46 (c) Eligible taxpayer. For purposes of this subdivision, the term 47 "eligible taxpayer" means a grocery store, food broker, wholesaler, 48 restauranteur, or catering service. 49 (d) Eligible food pantry. For purposes of this subdivision, the term 50 "eligible food pantry" means food pantry, food bank, or other emergency 51 food program operating within this state that has qualified for tax 52 exemption under section 501(c)(3) of the internal revenue code. 53 (e) Determination of wholesale value. For purposes of this subdivi- 54 sion, to determine the wholesale value of apparently wholesome food 55 donated to an eligible food pantry, the standards set forth under 56 section 170 (e)(3)(C)(v) of the internal revenue code shall apply.A. 6492 3 1 (f) Record of donation. To claim a credit under this subdivision, an 2 eligible taxpayer must get and keep a receipt from the eligible food 3 pantry showing: (1) the name of the eligible food pantry; (2) the date 4 and location of the qualified donation; and (3) a reasonably detailed 5 description of the qualified donation. A letter or other written commu- 6 nication from the eligible food pantry acknowledging receipt of the 7 contribution and containing the information in subparagraphs one, two, 8 and three of this paragraph will serve as a receipt. Any local food 9 pantry may accept or reject any donation of food made under this section 10 for any reason. For purposes of this section, any donations of food 11 accepted by a local food pantry shall be at valued wholesale value. 12 (g) Application of credit. The credit allowed under this subdivision 13 for any taxable year will not reduce the tax due for such year to less 14 than the amount prescribed in paragraph (d) of subdivision one of 15 section two hundred ten of this chapter. However, if the amount of 16 credit allowed under this subdivision for any taxable year reduces the 17 tax to such amount or if the taxpayer otherwise pays tax based on the 18 fixed dollar minimum amount, any amount of credit thus not deductible in 19 such taxable year will be treated as an overpayment of tax to be credit- 20 ed or refunded in accordance with the provisions of section one thousand 21 eighty-six of this chapter. Provided, however, the provisions of 22 subsection (c) of section one thousand eighty-eight of this chapter 23 notwithstanding, no interest will be paid thereon. 24 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 25 of the tax law is amended by adding a new clause (xliv) to read as 26 follows: 27 (xliv) Grocery store donations Amount of credit under 28 to food pantries credit under subdivision fifty-three of 29 subsection (jjj) section two hundred ten-B 30 § 4. This act shall take effect immediately and shall apply to taxable 31 years beginning on or after January 1, 2021.
