Bill Text: NY S01241 | 2019-2020 | General Assembly | Introduced

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

Spectrum: Partisan Bill (Republican 8-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S01241 Detail]

Download: New_York-2019-S01241-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          1241
                               2019-2020 Regular Sessions
                    IN SENATE
                                    January 11, 2019
                                       ___________
        Introduced  by Sens. SERINO, GALLIVAN, HELMING, JACOBS, LAVALLE, O'MARA,
          ORTT, ROBACH -- read twice and ordered printed, and when printed to be
          committed to the Committee on Investigations and Government Operations
        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 53 to read as follows:
     3    53.  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.  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
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06974-02-9
        S. 1241                             2
     1  food  program  operating  within  this  state that has qualified for tax
     2  exemption under section 501(c)(3) of the internal revenue code.
     3    (e)  Determination  of  wholesale value. For purposes of this subdivi-
     4  sion, to determine the wholesale  value  of  apparently  wholesome  food
     5  donated  to  an  eligible  food  pantry,  the  standards set forth under
     6  section 170 (e)(3)(C)(v) of the internal revenue code shall apply.
     7    (f) Record of donation. To claim a credit under this  subdivision,  an
     8  eligible  taxpayer  must  get  and keep a receipt from the eligible food
     9  pantry showing: (1) the name of the eligible food pantry; (2)  the  date
    10  and  location  of  the qualified donation; and (3) a reasonably detailed
    11  description of the qualified donation. A letter or other written  commu-
    12  nication  from  the  eligible  food  pantry acknowledging receipt of the
    13  contribution and containing the information in subparagraphs  one,  two,
    14  and  three  of  this  paragraph  will serve as a receipt. Any local food
    15  pantry may accept or reject any donation of food made under this section
    16  for any reason. For purposes of this  section,  any  donations  of  food
    17  accepted by a local food pantry shall be valued at wholesale value.
    18    (g)  Application  of credit. The credit allowed under this subdivision
    19  for any taxable year will not reduce the tax due for such year  to  less
    20  than  the  amount  prescribed  in  paragraph  (d)  of subdivision one of
    21  section two hundred ten of this article.   However,  if  the  amount  of
    22  credit  allowed  under this subdivision for any taxable year reduces the
    23  tax to such amount or if the taxpayer otherwise pays tax  based  on  the
    24  fixed dollar minimum amount, any amount of credit thus not deductible in
    25  such taxable year will be treated as an overpayment of tax to be credit-
    26  ed or refunded in accordance with the provisions of section one thousand
    27  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
    28  subsection (c) of section one  thousand  eighty-eight  of  this  chapter
    29  notwithstanding, no interest will be paid thereon.
    30    §  2. Section 606 of the tax law is amended by adding a new subsection
    31  (jjj) to read as follows:
    32    (jjj) Credit for grocery donations to food pantries. (a)  General.  In
    33  the  case of an eligible taxpayer there shall be allowed a tax credit to
    34  be computed as hereinafter provided against  the  tax  imposed  by  this
    35  article  for  taxable  years  beginning  on and after January first, two
    36  thousand twenty. The amount of  the  tax  credit  shall  be  twenty-five
    37  percent  of  the  wholesale  value  of the eligible taxpayer's qualified
    38  donations made to any eligible food pantry during the taxable year,  not
    39  to  exceed a cumulative amount of tax credits under this section of five
    40  thousand dollars per taxable year.
    41    (b) Qualified donation. For purposes of  this  subdivision,  the  term
    42  "qualified  donation"  means a donation of apparently wholesome food, as
    43  defined in section 170(e)(3)(C)(vi) of the internal revenue  code,  that
    44  is  surplus  or  about-to-waste  food,  including,  but  not limited to,
    45  fruits, vegetables,  meats,  poultry,  eggs,  dairy  products  or  other
    46  natural  and  processed  products  offered  for sale for human or animal
    47  consumption.
    48    (c) Eligible taxpayer. For purposes  of  this  subdivision,  the  term
    49  "eligible  taxpayer"  means  a  grocery  store, food broker, wholesaler,
    50  restauranteur, or catering service.
    51    (d) Eligible food pantry. For purposes of this subdivision,  the  term
    52  "eligible  food pantry" means food pantry, food bank, or other emergency
    53  food program operating within this state  that  has  qualified  for  tax
    54  exemption under section 501(c)(3) of the internal revenue code.
    55    (e)  Determination  of  wholesale value. For purposes of this subdivi-
    56  sion, to determine the wholesale  value  of  apparently  wholesome  food
        S. 1241                             3
     1  donated  to  an  eligible  food  pantry,  the  standards set forth under
     2  section 170 (e)(3)(C)(v) of the internal revenue code shall apply.
     3    (f)  Record  of donation. To claim a credit under this subdivision, an
     4  eligible taxpayer must get and keep a receipt  from  the  eligible  food
     5  pantry  showing:  (1) the name of the eligible food pantry; (2) the date
     6  and location of the qualified donation; and (3)  a  reasonably  detailed
     7  description  of the qualified donation. A letter or other written commu-
     8  nication from the eligible food  pantry  acknowledging  receipt  of  the
     9  contribution  and  containing the information in subparagraphs one, two,
    10  and three of this paragraph will serve as  a  receipt.  Any  local  food
    11  pantry may accept or reject any donation of food made under this section
    12  for  any  reason.  For  purposes  of this section, any donations of food
    13  accepted by a local food pantry shall be at valued wholesale value.
    14    (g) Application of credit. The credit allowed under  this  subdivision
    15  for  any  taxable year will not reduce the tax due for such year to less
    16  than the amount prescribed  in  paragraph  (d)  of  subdivision  one  of
    17  section  two  hundred  ten  of this chapter.   However, if the amount of
    18  credit allowed under this subdivision for any taxable year  reduces  the
    19  tax  to  such  amount or if the taxpayer otherwise pays tax based on the
    20  fixed dollar minimum amount, any amount of credit thus not deductible in
    21  such taxable year will be treated as an overpayment of tax to be credit-
    22  ed or refunded in accordance with the provisions of section one thousand
    23  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
    24  subsection  (c)  of  section  one  thousand eighty-eight of this chapter
    25  notwithstanding, no interest will be paid thereon.
    26    § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
    27  of  the  tax  law  is  amended  by adding a new clause (xliv) to read as
    28  follows:
    29  (xliv) Grocery store donations       Amount of credit under
    30  to food pantries credit under        subdivision fifty-three of
    31  subsection (jjj)                     section two hundred ten-B
    32    § 4. This act shall take effect immediately and shall apply to taxable
    33  years beginning on or after January 1, 2020.