Bill Text: NY A10584 | 2015-2016 | General Assembly | Introduced
Bill Title: Establishes a tax credit for donation of wholesome food to a food bank or other emergency food program by eligible New York state farmers.
Spectrum: Bipartisan Bill
Status: (Vetoed) 2016-11-28 - tabled [A10584 Detail]
Download: New_York-2015-A10584-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 10584 IN ASSEMBLY June 7, 2016 ___________ Introduced by COMMITTEE ON RULES -- (at request of M. of A. Moya, Palmesano) -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to a credit for donations to a food bank or other emergency food program by New York state farmers The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 606 of the tax law is amended by adding a new 2 subsection (n-2) to read as follows: 3 (n-2) Credit for farm donations to food bank or emergency food 4 program. (1) General. In the case of a taxpayer who is an eligible farm- 5 er, there shall be allowed a credit, to be computed as hereinafter 6 provided against the tax imposed by this article for taxable years on 7 and after January first, two thousand seventeen. The amount of the cred- 8 it shall be twenty-five percent of the wholesale cost of the taxpayer's 9 qualified donations, as defined in paragraph three of this subsection, 10 made to any food bank or other public, charitable or not-for-profit 11 emergency food program operating within this state, up to five thousand 12 dollars per year. 13 (2) Eligible farmer. For purposes of this subsection, the term "eligi- 14 ble farmer" means a New York state resident taxpayer whose federal gross 15 income from farming for the taxable year is at least two-thirds of 16 excess federal gross income. Excess federal gross income means the 17 amount of federal gross income from all sources for the taxable year 18 reduced by the sum (not to exceed thirty thousand dollars) of those 19 items included in federal gross income which consist of (i) earned 20 income, (ii) pension payments, including social security payments, (iii) 21 interest, and (iv) dividends. For purposes of this paragraph, the term 22 "earned income" shall mean wages, salaries, tips and other employee 23 compensation, and those items of gross income which are includible in 24 the computation of net earnings from self-employment. For the purposes 25 of this paragraph, payments from the state's farmland protection 26 program, administered by the department of agriculture and markets, EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD15365-02-6A. 10584 2 1 shall be included as federal gross income from farming for otherwise 2 eligible farmers. 3 (3) Qualified donation. For purposes of this subsection, the term 4 "qualified donation" means a donation of any fresh food item grown or 5 produced by an eligible farmer to a food bank or other emergency food 6 program operating within this state. 7 (4) Application of credit. The credit allowed under this subsection 8 for any taxable year will not reduce the tax due for such year to less 9 than the minimum tax fixed by this article. However, if the amount of 10 credit allowed under this subsection for any taxable year reduces the 11 tax to such amount, any amount of credit thus not deductible in such 12 taxable year will be treated as an overpayment of tax to be credited or 13 refunded in accordance with the provisions of section one thousand 14 eighty-six of this chapter. Provided, however, the provisions of 15 subsection (c) of section one thousand eighty-eight of this chapter 16 notwithstanding, no interest will be paid thereon. 17 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 18 of the tax law is amended by adding a new clause (xliii) to read as 19 follows: 20 (xliii) Farm donations to food Amount of credit under 21 bank or emergency food program subdivision fifty-two 22 credit under subsection (n-2) of section two hundred 23 ten-B 24 § 3. Section 210-B of the tax law is amended by adding a new subdivi- 25 sion 52 to read as follows: 26 52. Credit for farm donations to food bank or emergency food program. 27 (a) General. In the case of a taxpayer who is an eligible farmer, there 28 shall be allowed a credit, to be computed as hereinafter provided 29 against the tax imposed by this article for taxable years beginning on 30 and after January first, two thousand seventeen. The amount of the cred- 31 it shall be twenty-five percent of the wholesale cost of the taxpayer's 32 qualified donations, as defined in paragraph (c) of this subdivision, 33 made to any food bank or other public, charitable or not-for-profit 34 emergency food program operating within this state, up to five thousand 35 dollars during the taxable year. 36 (b) Eligible farmer. For purposes of this subdivision, the term 37 "eligible farmer" means a New York state resident taxpayer whose federal 38 gross income from farming for the taxable year is at least two-thirds of 39 excess federal gross income. Excess federal gross income means the 40 amount of federal gross income from all sources for the taxable year 41 reduced by the sum (not to exceed thirty thousand dollars) of those 42 items included in federal gross income which consist of (i) earned 43 income, (ii) pension payments, including social security payments, (iii) 44 interest, and (iv) dividends. For purposes of this paragraph, the term 45 "earned income" shall mean wages, salaries, tips and other employee 46 compensation, and those items of gross income which are includible in 47 the computation of net earnings from self-employment. For the purposes 48 of this paragraph, payments from the state's farmland protection 49 program, administered by the department of agriculture and markets, 50 shall be included as federal gross income from farming for otherwise 51 eligible farmers. 52 (c) Qualified donation. For purposes of this subdivision, the term 53 "qualified donation" means a donation of any fresh food item grown or 54 produced by an eligible farmer to a food bank or other emergency food 55 program operating within this state.A. 10584 3 1 (d) Application of credit. The credit allowed under this subdivision 2 for any taxable year will not reduce the tax due for such year to less 3 than the minimum tax fixed by this article. However, if the amount of 4 credit allowed under this subdivision for any taxable year reduces the 5 tax to such amount, any amount of credit thus not deductible in such 6 taxable year will be treated as an overpayment of tax to be credited or 7 refunded in accordance with the provisions of section one thousand 8 eighty-six of this chapter. Provided, however, the provisions of 9 subsection (c) of section one thousand eighty-eight of this chapter 10 notwithstanding, no interest will be paid thereon. 11 § 4. The department of agriculture and markets, in conjunction with 12 the department of taxation and finance, shall establish an accepted 13 wholesale price of the taxpayer's qualified donations and promulgate any 14 necessary rules and regulations. 15 § 5. This act shall take effect on January 1, 2017 and shall apply to 16 taxable years beginning on or after such date.
