Bill Text: NY A03394 | 2019-2020 | General Assembly | Introduced

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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

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                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.
                                                                   LBD07078-01-9
        A. 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.