Bill Text: NY A01336 | 2023-2024 | General Assembly | Introduced

---

Bill Title: Establishes a tax credit for grocery donations to food pantries.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced) 2024-01-03 - referred to ways and means [A01336 Detail]

Download: New_York-2023-A01336-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________

                                          1336

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 17, 2023
                                       ___________

        Introduced  by  M.  of A. CLARK, KELLES -- 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 59 to read as follows:
     3    59.  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-four. 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.
                                                                   LBD04497-01-3
        A. 1336                             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 section for any taxable year reduces  the  tax
    21  to  such amount or if the taxpayer otherwise pays tax based on the fixed
    22  dollar minimum amount, any amount of credit thus not deductible in  such
    23  taxable  year will be treated as an overpayment of tax to be credited or
    24  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  (ooo) to read as follows:
    30    (ooo) 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-four. 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  subsection,  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  subsection,  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  subsection,  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 subsection,
    54  to determine the wholesale value of apparently wholesome food donated to
    55  an  eligible  food  pantry,  the  standards  set forth under section 170
    56  (e)(3)(C)(v) of the internal revenue code shall apply.
        A. 1336                             3

     1    (f) Record of donation. To claim a credit under  this  subsection,  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  subsection
    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 subsection 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 (l) to read as follows:
    26  (l) Grocery store donations          Amount of credit under
    27  to food pantries credit under        subdivision fifty-nine of
    28  subsection (ooo)                     section two hundred ten-B
    29    § 4. This act shall take effect immediately and shall apply to taxable
    30  years beginning on or after January 1, 2024.