Bill Text: NY A03394 | 2019-2020 | General Assembly | Introduced
Bill Title: Establishes business franchise and personal income tax credits for businesses that donate prepared foods.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2020-01-08 - referred to ways and means [A03394 Detail]
Download: New_York-2019-A03394-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 3394 2019-2020 Regular Sessions IN ASSEMBLY January 29, 2019 ___________ Introduced by M. of A. ORTIZ, JONES -- Multi-Sponsored by -- M. of A. COLTON, LUPARDO -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to establishing business fran- chise and personal income tax credits for businesses that donate prepared food 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 53 to read as follows: 3 53. Prepared food donation credit. (a) A qualifying taxpayer shall be 4 allowed a credit against the tax imposed by this article equal to twen- 5 ty-five percent of the taxpayer's eligible charitable food donation. 6 (b) For purposes of this subdivision, the following terms have the 7 meanings given: 8 (1) "eligible charitable food donation" means a contribution of 9 prepared food allowable as a charitable deduction for the taxable year 10 under section 170(a) of the Internal Revenue Code, subject to the limi- 11 tations of section 170(b) of the Internal Revenue Code, and determined 12 without regard to whether or not the taxpayer itemizes deductions; 13 (2) "prepared food" means food that meets all quality and labeling 14 standards imposed by federal, state, and local laws and regulations even 15 though the food may not be readily marketable due to appearance, age, 16 freshness, grade, size, surplus, or other conditions, and includes: 17 (i) food which is cooked or heated by the qualifying taxpayer; 18 (ii) two or more ingredients mixed together to be eaten as a single 19 item; or 20 (iii) any ingredients supplied for ingestion or chewing by humans that 21 are consumed for their taste or nutritional value; 22 (3) "qualifying taxpayer" means any restaurant making a charitable 23 food donation in New York; and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07078-01-9A. 3394 2 1 (4) "restaurant" means any facility: 2 (i) which is operated for profit; 3 (ii) where the usual and customary business is the serving of meals to 4 consumers; 5 (iii) which has a kitchen within the facility; and 6 (iv) which receives at least fifty percent of its gross receipts from 7 the sale of prepared food. 8 (c) Application of credit. The credit allowed under this subdivision 9 for any taxable year may not reduce the tax due for such year to less 10 than the amount prescribed in paragraph (d) of subdivision one of 11 section two hundred ten of this article. However, if the amount of cred- 12 it allowed under this subdivision for any taxable year reduces the tax 13 to such amount or if the taxpayer otherwise pays tax based on the fixed 14 dollar minimum amount, any amount of credit thus not deductible in such 15 taxable year will be treated as an overpayment of tax to be credited or 16 refunded in accordance with the provisions of section one thousand 17 eighty-six of this chapter. Provided, however, no interest will be paid 18 thereon. 19 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 20 of the tax law is amended by adding a new clause (xliv) to read as 21 follows: 22 (xliv) Prepared food donation Amount of credit under 23 credit under subdivision fifty-three 24 subsection (jjj) of section two hundred ten-B 25 § 3. Section 606 of the tax law is amended by adding a new subsection 26 (jjj) to read as follows: 27 (jjj) Prepared food donation credit. (1) A qualifying taxpayer is 28 allowed a credit against the tax imposed by this article equal to twen- 29 ty-five percent of the taxpayer's eligible charitable food donation. The 30 credit may not exceed the taxpayer's liability for tax and may not be 31 carried forward to any other taxable year. 32 (2) For purposes of this subdivision, the following terms have the 33 meanings given: 34 (A) "eligible charitable food donation" means a contribution of 35 prepared food allowable as a charitable deduction for the taxable year 36 under section 170(a) of the Internal Revenue Code, subject to the limi- 37 tations of section 170(b) of the Internal Revenue Code, and determined 38 without regard to whether or not the taxpayer itemizes deductions; 39 (B) "prepared food" means food that meets all quality and labeling 40 standards imposed by federal, state, and local laws and regulations even 41 though the food may not be readily marketable due to appearance, age, 42 freshness, grade, size, surplus, or other conditions, and includes: 43 (i) food which is cooked or heated by the qualifying taxpayer; 44 (ii) two or more ingredients mixed together to be eaten as a single 45 item; or 46 (iii) any ingredients supplied for ingestion or chewing by humans that 47 are consumed for their taste or nutritional value; 48 (C) "qualifying taxpayer" means any restaurant making a charitable 49 food donation in New York; and 50 (D) "restaurant" means any facility: 51 (i) which is operated for profit; 52 (ii) where the usual and customary business is the serving of meals to 53 consumers; 54 (iii) which has a kitchen within the facility; and 55 (iv) which receives at least fifty percent of its gross receipts from 56 the sale of prepared food.A. 3394 3 1 (3) Credits allowed to a partnership, a limited liability company 2 taxed as a partnership, an S corporation, or multiple owners of property 3 are passed through to the partners, members, shareholders, or owners, 4 respectively, pro rata to each partner, member, shareholder, or owner 5 based on their share of the entity's income for the taxable year. 6 (4) Application of credit. If the amount of the credit allowed under 7 this subsection for any taxable year shall exceed the taxpayer's tax for 8 such year, the excess shall be treated as an overpayment of tax to be 9 credited or refunded in accordance with the provisions of section six 10 hundred eighty-six of this article, provided, however, that no interest 11 shall be paid thereon. 12 § 4. This act shall take effect immediately and shall apply to taxable 13 years beginning on or after January 1, 2020.