Bill Text: IL HB3301 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 9-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB3301 Detail]

Download: Illinois-2017-HB3301-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB3301 Introduced , by Rep. Sue Scherer SYNOPSIS AS INTRODUCED:
35 ILCS 5/224 new
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
A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Income Tax Act is amended by adding
Section 224 as follows:
(35 ILCS 5/224 new)
Sec. 224. Crop donation credit.
(a) For taxable years beginning on or after January 1,
2017, to the extent that such amounts have not been deducted
for the purposes of calculating the taxpayer's federal adjusted
gross income, each taxpayer that makes a qualified donation of
a crop is allowed a credit against the tax imposed by
subsections (a) and (b) of Section 201. In the case of a
qualified donation made under circumstances described items
(1) or (2) of the definition of "qualified donation" set forth
in subsection (d) of this Section, the amount of the credit
shall be 15% of the value of the quantity of the crop donated
computed at the wholesale market price. In the case of a
qualified donation made under circumstances described in item
(3) of the definition of "qualified donation" set forth in
subsection (d) of this Section, the amount of the credit shall
be 15% of the value of the quantity of the crop donated
computed at the wholesale market price that the grower would

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have received had the quantity of the crop donated been sold or
salable.
(b) For partners, shareholders of Subchapter S
corporations, and owners of limited liability companies, if the
liability company is treated as a partnership for purposes of
federal and State income taxation, the credit under this
Section shall be determined in accordance with the
determination of income and distributive share of income under
Sections 702 and 704 and Subchapter S of the Internal Revenue
Code.
(c) In no event shall a credit under this Section reduce
the taxpayer's liability to less than zero. If the amount of
the credit exceeds the tax liability for the year, the excess
may be carried forward and applied to the tax liability of the
5 taxable years following the excess credit year. The tax
credit shall be applied to the earliest year for which there is
a tax liability. If there are credits for more than one year
that are available to offset a liability, the earlier credit
shall be applied first.
(d) For the purposes of this Section:
"Apparently wholesome food" means:
(1) food fit for human consumption; and
(2) food that meets all quality and labeling standards
imposed by federal, State, or local laws, even though the
food may not be readily marketable due to appearance, age,
freshness, grade, size, surplus, or other condition.

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"Crop" means an agricultural crop producing food for human
consumption and includes, but is not limited to, bedding plants
that produce food, orchard stock intended for the production of
food, and livestock that may be processed into food for human
consumption.
"Food bank or other charitable organization" means any
organization located in this State, including but not limited
to a gleaning cooperative, that is exempt from federal income
taxes under section 501(c)(3) of the Internal Revenue Code and
that has as a principal or ongoing purpose the distribution of
food to children or homeless, unemployed, elderly, or
low-income individuals.
"Qualified donation" means the harvest or post-harvest
contribution in Illinois of a crop or a portion of a crop grown
primarily to be sold for cash that is donated by the grower of
the crop to a food bank or other charitable organization
engaged in the distribution of food without charge, while the
crop is still usable as food for human consumption and:
(1) the grower of the crop has supplied any crop
contract quota with the wholesale or retail buyer;
(2) if the grower of the crop is a party to a
contingent supply contract, the wholesale or retail buyer
reduces the crop quota that was reasonably anticipated to
be supplied by the grower; or
(3) the grower of the crop otherwise determines to make
a donation of apparently wholesome food.

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"Wholesale market price" means the market price for the
produce determined either by:
(1) the amount paid to the grower by the last previous
cash buyer of the particular crop; or
(2) in the event there is no previous cash buyer, a
market price based upon the market price of the nearest
regional wholesale buyer or the regional U-Pick market
price.
(e) This Section is exempt from the provisions of Section
250.
Section 99. Effective date. This Act takes effect upon
becoming law.