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| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3103 Introduced , by Rep. Lance Yednock SYNOPSIS AS INTRODUCED:
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Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who make a qualified donation of a crop to a food bank or other charitable organization in Illinois. Provides that the amount of the credit shall be 15% of the value of the quantity of the crop donated. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
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| | HB3103 | | LRB102 09892 HLH 15210 b |
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| 1 | | AN ACT concerning revenue.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Illinois Income Tax Act is amended by |
| 5 | | adding Section 232 as follows:
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| 6 | | (35 ILCS 5/232 new) |
| 7 | | Sec. 232. Crop donation credit. |
| 8 | | (a) For taxable years beginning on or after January 1, |
| 9 | | 2021, to the extent that such amounts have not been deducted |
| 10 | | for the purposes of calculating the taxpayer's federal |
| 11 | | adjusted gross income, each taxpayer that makes a qualified |
| 12 | | donation of a crop is allowed a credit against the tax imposed |
| 13 | | by subsections (a) and (b) of Section 201. In the case of a |
| 14 | | qualified donation made under circumstances described items |
| 15 | | (1) or (2) of the definition of "qualified donation" set forth |
| 16 | | in subsection (d) of this Section, the amount of the credit |
| 17 | | shall be 15% of the value of the quantity of the crop donated |
| 18 | | computed at the wholesale market price. In the case of a |
| 19 | | qualified donation made under circumstances described in item |
| 20 | | (3) of the definition of "qualified donation" set forth in |
| 21 | | subsection (d) of this Section, the amount of the credit shall |
| 22 | | be 15% of the value of the quantity of the crop donated |
| 23 | | computed at the wholesale market price that the grower would |
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| 1 | | have received had the quantity of the crop donated been sold or |
| 2 | | salable. |
| 3 | | (b) For partners, shareholders of Subchapter S |
| 4 | | corporations, and owners of limited liability companies, if |
| 5 | | the liability company is treated as a partnership for purposes |
| 6 | | of federal and State income taxation, the credit under this |
| 7 | | Section shall be determined in accordance with the |
| 8 | | determination of income and distributive share of income under |
| 9 | | Sections 702 and 704 and Subchapter S of the Internal Revenue |
| 10 | | Code. |
| 11 | | (c) In no event shall a credit under this Section reduce |
| 12 | | the taxpayer's liability to less than zero. If the amount of |
| 13 | | the credit exceeds the tax liability for the year, the excess |
| 14 | | may be carried forward and applied to the tax liability of the |
| 15 | | 5 taxable years following the excess credit year. The tax |
| 16 | | credit shall be applied to the earliest year for which there is |
| 17 | | a tax liability. If there are credits for more than one year |
| 18 | | that are available to offset a liability, the earlier credit |
| 19 | | shall be applied first. |
| 20 | | (d) For the purposes of this Section: |
| 21 | | "Apparently wholesome food" means: |
| 22 | | (1) food fit for human consumption; and |
| 23 | | (2) food that meets all quality and labeling standards |
| 24 | | imposed by federal, State, or local laws, even though the |
| 25 | | food may not be readily marketable due to appearance, age, |
| 26 | | freshness, grade, size, surplus, or other condition. |
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| 1 | | "Crop" means an agricultural crop producing food for human |
| 2 | | consumption and includes, but is not limited to, bedding |
| 3 | | plants that produce food, orchard stock intended for the |
| 4 | | production of food, and livestock that may be processed into |
| 5 | | food for human consumption. |
| 6 | | "Food bank or other charitable organization" means any |
| 7 | | organization located in this State, including but not limited |
| 8 | | to a gleaning cooperative, that is exempt from federal income |
| 9 | | taxes under section 501(c)(3) of the Internal Revenue Code and |
| 10 | | that has as a principal or ongoing purpose the distribution of |
| 11 | | food to children or homeless, unemployed, elderly, or |
| 12 | | low-income individuals. |
| 13 | | "Qualified donation" means the harvest or post-harvest |
| 14 | | contribution in Illinois of a crop or a portion of a crop grown |
| 15 | | primarily to be sold for cash that is donated by the grower of |
| 16 | | the crop to a food bank or other charitable organization |
| 17 | | engaged in the distribution of food without charge, while the |
| 18 | | crop is still usable as food for human consumption and: |
| 19 | | (1) the grower of the crop has supplied any crop |
| 20 | | contract quota with the wholesale or retail buyer; |
| 21 | | (2) if the grower of the crop is a party to a |
| 22 | | contingent supply contract, the wholesale or retail buyer |
| 23 | | reduces the crop quota that was reasonably anticipated to |
| 24 | | be supplied by the grower; or |
| 25 | | (3) the grower of the crop otherwise determines to |
| 26 | | make a donation of apparently wholesome food. |
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| 1 | | "Wholesale market price" means the market price for the |
| 2 | | produce determined either by: |
| 3 | | (1) the amount paid to the grower by the last previous |
| 4 | | cash buyer of the particular crop; or |
| 5 | | (2) in the event there is no previous cash buyer, a |
| 6 | | market price based upon the market price of the nearest |
| 7 | | regional wholesale buyer or the regional U-Pick market |
| 8 | | price. |
| 9 | | (e) This Section is exempt from the provisions of Section |
| 10 | | 250.
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| 11 | | Section 99. Effective date. This Act takes effect upon |
| 12 | | becoming law.
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