Bill Text: CA AB2768 | 2015-2016 | Regular Session | Amended

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Bill Title: Income and corporation taxes: credit: donation of food.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Failed) 2016-11-30 - From committee without further action. [AB2768 Detail]

Download: California-2015-AB2768-Amended.html

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BILL NUMBER: AB 2768	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 16, 2016

INTRODUCED BY   Assembly Member Thurmond
   (Coauthors: Assembly Members Dababneh and Rodriguez)
   (Coauthors: Senators Hueso and Mendoza)

                        FEBRUARY 19, 2016

   An act to add and repeal Sections 17053.90 and 23690 of the
Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2768, as amended, Thurmond. Income and corporation taxes:
credit: donation of food.
   The Personal Income Tax Law and the Bank and Corporation Tax Law
allow various credits against the taxes imposed by those laws,
including a credit for a farmer to donate fresh foods and vegetables
to a food bank.
   This bill would allow a credit against those taxes for each
taxable year, beginning on and after January 1, 2017, and before
January 1, 2023, to a taxpayer that donates qualified food, as
defined, of its trade or business to an organization located in
California and exempt from federal income taxation, as specified.
   This bill would take effect immediately as a tax levy.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares the following:
   (a) One out of every seven Californians does not know where his or
her next meal will come from.
   (b) Two million three hundred thousand children in California are
food insecure, with one in four children going to bed hungry each
night.
   (c) Although CalFresh is the state's most effective program to
address hunger in the state, serving 4,500,000 Californians, the
state's federal waiver to the three-month time limit for the federal
Able Bodied Adults Without Dependents in the Supplementary Nutrition
Assistance Program, known in California as CalFresh, will expire in
2017. The expiration of the federal waiver is expected to increase
demand on local direct service organizations serving food prepared
for human consumption.
   (d) California has been a leader in public-private partnerships to
reduce hunger. Examples of these partnerships include the CalFresh
Restaurant Meals Program and the California Association of Food Banks'
Farm to Family program.
   (e) Given the growing need for hunger relief, restaurants and
grocers are trying to find a better way to redirect excess food to
the hungry, instead of landfills.
  SEC. 2.  Section 17053.90 is added to the Revenue and Taxation
Code, to read:
   17053.90.  (a) For taxable years beginning on or after January 1,
2017, and before January 1, 2023, in the case of a taxpayer that
donates qualified food of its trade or business to an organization
located in California that is exempt from federal income taxation as
an organization described in Section 501(c)(3) of the Internal
Revenue Code, there shall be allowed as a credit against the "net
tax," as defined in Section 17039, an amount equal to 10 percent of
the fair market value of the contribution.
   (b) For purposes of this section, "qualified food" means
prepackaged food, as defined in Section 113876 of Health and Safety
Code,  and   or  food prepared for
immediate human consumption, including unspoiled fruits and
vegetables.
   (c) A deduction or credit shall not be allowed under this part for
amounts taken into account under this section in calculating the
credit allowed by this section. 
   (d) In the case where the credit allowed under this section
exceeds the net tax, the excess may be carried over to reduce the net
tax in the following year, and for the eight succeeding years, if
necessary, until the credit has been exhausted. 
    (d)     The credit allowed by this section
may be claimed only on a timely filed original return. 
   (e) This section shall be repealed on December 1, 2023.
  SEC. 3.  Section 23690 is added to the Revenue and Taxation Code,
to read:
   23690.  (a) For taxable years beginning on or after January 1,
2017, and before January 1, 2023, in the case of a taxpayer that
donates qualified food  from   of  its
trade or business to an organization located in California that is
exempt from federal income taxation as an organization described in
Section 501(c)(3) of the Internal Revenue Code, there shall be
allowed as a credit against the "tax," as defined in Section 23036,
an amount equal to  15   10  percent of the
fair market value of the contribution.
   (b) For purposes of this section, "qualified food" means
prepackaged food, as defined in Section 113876 of Health and Safety
Code,  and   or  food prepared for
immediate human consumption, including unspoiled fruits and
vegetables.
   (c) A deduction  or credit  shall not be allowed under
this part for amounts taken into account under this section in
calculating the credit allowed by this section. 
   (d) In the case where the credit allowed under this section
exceeds the net tax, the excess may be carried over to reduce the net
tax in the following year, and for the eight succeeding years, if
necessary, until the credit has been exhausted. 
    (d)     The credit allowed by this section
may be claimed only on a timely filed original return. 
   (e) This section shall be repealed on December 1, 2023.
  SEC. 4.  It is the intent of the Legislature to comply with Section
41 of the Revenue and Taxation Code.
  SEC. 5.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.