Bill Text: IA SF2327 | 2011-2012 | 84th General Assembly | Introduced
Bill Title: A bill for an act providing for charitable food donations to food banks and similar organizations, including by providing for a tax credit and including effective date and applicability provisions. (Formerly SSB 3095, SF 2291, and SF 2323.)
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2012-04-05 - Subcommittee, Helland, Petersen, and Sands. H.J. 761. [SF2327 Detail]
Download: Iowa-2011-SF2327-Introduced.html
Senate
File
2327
-
Introduced
SENATE
FILE
2327
BY
COMMITTEE
ON
APPROPRIATIONS
(SUCCESSOR
TO
SF
2323)
(SUCCESSOR
TO
SF
2291)
(SUCCESSOR
TO
SSB
3095)
A
BILL
FOR
An
Act
providing
for
charitable
food
donations
to
food
banks
1
and
similar
organizations,
including
by
providing
for
a
2
tax
credit
and
including
effective
date
and
applicability
3
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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2327
Section
1.
NEW
SECTION
.
190B.1
Purpose.
1
The
purpose
of
this
chapter
is
to
effectively
and
2
efficiently
utilize
Iowa’s
abundant
supplies
of
nutritional
3
food
to
relieve
situations
of
emergency
or
distress
experienced
4
by
individuals
or
families
in
need
who
reside
in
this
state,
5
including
low-income
individuals
or
families
and
unemployed
6
individuals
or
families.
7
Sec.
2.
NEW
SECTION
.
190B.2
Definitions.
8
As
used
in
this
chapter,
unless
the
context
otherwise
9
requires:
10
1.
“Agricultural
land”
means
the
same
as
defined
in
section
11
425A.2.
12
2.
“Department”
means
the
department
of
revenue.
13
3.
“Federal
emergency
food
assistance
program”
means
the
14
federal
emergency
food
assistance
program,
as
provided
in
7
15
C.F.R.
pts.
250
and
251.
16
4.
“Food”
means
a
substance
which
is
used
in
whole
or
in
17
part
for
human
consumption
in
compliance
with
federal
and
state
18
standards
or
requirements
including
a
donated
food
that
meets
19
the
requirements
of
the
federal
emergency
food
assistance
20
program.
21
5.
“Food
commodity”
means
any
commodity
that
is
derived
22
from
an
agricultural
animal
or
crop,
both
as
defined
in
section
23
717A.1,
which
was
produced
on
agricultural
land
and
which
is
24
intended
to
be
used
as
food.
25
6.
“Iowa
emergency
feeding
organization”
means
a
public
or
26
private
nonprofit
organization
whose
mission
is
compatible
with
27
the
purpose
of
this
chapter
as
provided
in
section
190B.1
and
28
which
includes
an
Iowa
food
bank
or
other
organization
that
29
operates
at
a
congregate
nutritional
site
or
that
provides
30
home-delivered
meals
in
this
state.
An
Iowa
emergency
feeding
31
organization
includes
but
is
not
limited
to
a
food
pantry,
32
hunger
relief
center,
or
soup
kitchen.
33
7.
“Iowa
food
bank”
means
a
private
nonprofit
organization
34
which
meets
all
of
the
following
requirements:
35
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a.
It
receives,
holds,
and
directly
or
indirectly
1
distributes
food
principally
to
Iowa
emergency
feeding
2
organizations
in
a
manner
compatible
with
the
purpose
of
this
3
chapter
as
provided
in
section
190B.1.
4
b.
It
is
an
organization
described
in
section
501(c)(3)
5
of
the
Internal
Revenue
Code
and
exempt
from
taxation
under
6
section
501(a)
of
the
Internal
Revenue
Code.
7
c.
It
receives
contributions
that
are
deductible
under
8
section
170
of
the
Internal
Revenue
Code.
9
8.
“Tax
credit”
means
the
from
farm
to
food
donation
tax
10
credit
as
established
in
this
chapter.
11
Sec.
3.
NEW
SECTION
.
190B.3
Department
of
revenue
——
12
cooperation
with
other
departments.
13
1.
This
chapter
shall
be
administered
by
the
department
of
14
revenue.
15
2.
The
department
shall
adopt
all
rules
necessary
to
16
administer
this
chapter.
17
3.
The
department
of
agriculture
and
land
stewardship,
the
18
department
of
public
health,
the
department
of
human
services,
19
and
the
department
of
inspections
and
appeals
shall
cooperate
20
with
the
department
of
revenue
to
administer
this
chapter.
21
Sec.
4.
NEW
SECTION
.
190B.4
From
farm
to
food
donation
tax
22
credit.
23
The
from
farm
to
food
donation
tax
credit
is
allowed
against
24
the
taxes
imposed
in
chapter
422,
divisions
II
and
III,
as
25
provided
in
this
chapter.
26
Sec.
5.
NEW
SECTION
.
190B.5
From
farm
to
food
donation
tax
27
credit
——
eligibility.
28
In
order
to
qualify
for
the
from
farm
to
food
donation
tax
29
credit,
all
of
the
following
must
apply:
30
1.
The
taxpayer
must
produce
the
donated
food
commodity.
31
2.
The
taxpayer
must
transfer
title
to
the
food
commodity
to
32
an
Iowa
food
bank,
or
an
Iowa
emergency
feeding
organization,
33
recognized
by
the
department.
The
taxpayer
shall
not
receive
34
remuneration
for
the
transfer.
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3.
a.
The
food
commodity
must
be
intended
for
human
1
consumption
in
its
raw
or
processed
state.
2
b.
The
food
commodity
cannot
be
damaged
or
out-of-condition
3
and
declared
to
be
unfit
for
human
consumption
by
a
federal,
4
state,
or
local
health
official.
A
food
commodity
that
meets
5
the
requirements
for
donated
foods
pursuant
to
the
federal
6
emergency
food
assistance
program
satisfies
this
requirement.
7
4.
The
taxpayer
shall
provide
documentation
supporting
8
the
tax
credit
claim
in
a
form
and
manner
prescribed
by
the
9
department
by
rule.
10
Sec.
6.
NEW
SECTION
.
190B.6
From
farm
to
food
donation
11
tax
credit
——
claims
filed
by
individuals
who
belong
to
business
12
entities.
13
An
individual
may
claim
a
from
farm
to
food
donation
14
tax
credit
of
a
partnership,
limited
liability
company,
15
S
corporation,
estate,
or
trust
electing
to
have
income
16
taxed
directly
to
the
individual.
The
amount
claimed
by
the
17
individual
shall
be
based
upon
the
pro
rata
share
of
the
18
individual’s
earnings
from
the
partnership,
limited
liability
19
company,
S
corporation,
estate,
or
trust.
20
Sec.
7.
NEW
SECTION
.
190B.7
From
farm
to
food
donation
tax
21
credit
——
limits
on
claims.
22
The
from
farm
to
food
donation
tax
credit
is
subject
to
all
23
of
the
following
limitations:
24
1.
The
tax
credit
shall
not
exceed
a
qualifying
amount
for
25
the
tax
year
that
the
tax
credit
is
claimed.
The
qualifying
26
amount
is
the
lesser
of
the
following:
27
a.
Ten
percent
of
the
value
of
the
commodities
donated
28
during
the
tax
year
for
which
the
credit
is
claimed.
The
value
29
of
the
commodities
shall
be
determined
in
the
same
manner
as
a
30
charitable
contribution
of
food
for
federal
tax
purposes
under
31
section
170(e)(3)(C)
of
the
Internal
Revenue
Code.
32
b.
Five
thousand
dollars.
33
2.
The
tax
credit
in
excess
of
the
taxpayer’s
liability
34
for
the
tax
year
is
not
refundable
but
may
be
credited
to
the
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2327
tax
liability
for
the
following
five
years
or
until
depleted,
1
whichever
is
earlier.
2
3.
The
amount
of
the
contribution
for
which
the
tax
credit
3
is
claimed
shall
not
be
deductible
in
determining
taxable
4
income
for
state
tax
purposes.
5
4.
The
tax
credit
shall
not
be
carried
back
to
a
tax
year
6
prior
to
the
tax
year
in
which
the
taxpayer
claims
the
tax
7
credit.
8
Sec.
8.
NEW
SECTION
.
422.11L
From
farm
to
food
donation
tax
9
credit.
10
The
taxes
imposed
under
this
division,
less
the
credits
11
allowed
under
section
422.12,
shall
be
reduced
by
a
from
farm
12
to
food
donation
tax
credit
as
allowed
under
chapter
190B.
13
Sec.
9.
Section
422.33,
Code
Supplement
2011,
is
amended
by
14
adding
the
following
new
subsection:
15
NEW
SUBSECTION
.
29.
The
taxes
imposed
under
this
division
16
shall
be
reduced
by
a
from
farm
to
food
donation
tax
credit
as
17
allowed
under
chapter
190B.
18
Sec.
10.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
19
2013.
20
Sec.
11.
APPLICABILITY.
This
Act
applies
to
tax
years
21
beginning
on
or
after
January
1,
2013.
22
EXPLANATION
23
PURPOSE.
The
stated
purpose
of
this
bill
is
to
provide
for
24
charitable
food
donations
to
food
banks
and
other
emergency
25
feeding
organizations
that
relieve
situations
of
emergency
or
26
distress
experienced
by
individuals
or
families
in
need
who
27
reside
in
this
state.
28
TAX
CREDIT.
The
bill
establishes
a
from
farm
to
food
29
donation
tax
credit
against
individual
or
corporate
income
30
taxes.
The
tax
credit
may
be
claimed
by
the
taxpayer
who
31
produces
the
food.
The
tax
credit
is
administered
by
the
32
department
of
revenue.
The
bill
provides
that
the
taxpayer
33
may
claim
a
tax
credit
for
10
percent
of
the
value
of
34
donated
commodities
up
to
$5,000.
The
bill
requires
that
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the
commodities
be
suitable
for
human
consumption.
The
bill
1
provides
that
if
the
tax
credit
is
claimed
by
the
taxpayer
2
the
amount
of
the
contribution
is
not
deductible
for
state
3
income
tax
purposes.
The
bill
provides
that
the
tax
credit
4
is
not
refundable
but
allows
a
taxpayer
to
carry
forward
the
5
tax
credit
for
up
to
five
years.
An
individual
may
claim
a
6
tax
credit
of
a
partnership,
limited
liability
company,
S
7
corporation,
estate,
or
trust
electing
to
have
income
taxed
8
directly
to
the
individual.
9
EFFECTIVE
AND
APPLICABILITY
DATES.
The
tax
credit
is
10
effective
on
January
1,
2013,
and
applies
to
tax
years
11
beginning
on
or
after
that
date.
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