Bill Text: NY A03488 | 2021-2022 | General Assembly | Introduced

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

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2022-01-05 - referred to ways and means [A03488 Detail]

Download: New_York-2021-A03488-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          3488

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                    January 27, 2021
                                       ___________

        Introduced  by M. of A. CLARK -- 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 55 to read as follows:
     3    55.  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-two.  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.
                                                                   LBD07261-01-1
        A. 3488                             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 subdivision for any taxable year  reduces  the
    21  tax  to  such  amount or if the taxpayer otherwise pays tax based on the
    22  fixed dollar minimum amount, any amount of credit thus not deductible in
    23  such taxable year will be treated as an overpayment of tax to be credit-
    24  ed or 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  (kkk) to read as follows:
    30    (kkk)  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-two.  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 subdivision, 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 subdivision, 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 subdivision, 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  subdivi-
    54  sion,  to  determine  the  wholesale  value of apparently wholesome food
    55  donated to an eligible  food  pantry,  the  standards  set  forth  under
    56  section 170 (e)(3)(C)(v) of the internal revenue code shall apply.
        A. 3488                             3

     1    (f)  Record  of donation. To claim a credit under this subdivision, 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  subdivision
    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 subdivision 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 (xlvi) to read as
    26  follows:
    27  (xlvi) Grocery store donations       Amount of credit under
    28  to food pantries credit under        subdivision fifty-five of
    29  subsection (kkk)                     section two hundred ten-B
    30    § 4. This act shall take effect immediately and shall apply to taxable
    31  years beginning on or after January 1, 2022.