Creates a vending to food pantries and soup kitchens tax credit

28. Vending to food pantry and soup kitchen tax credit. Part(a) Taxpayers who operate farms in the state of New York and sell fruits and vegetables grown in New York to food pantries and soup kitchens may claim the vending to food pantry and soup kitchen tax credit.

Part (b) defines the amount of the credit as fifty percent of the revenue earned by the farmer from the sale of fruits and vegetables grown in New York to food pantries and soup kitchens.

Part (c) declares receipts must be submitted with tax returns to receive the tax credit.

Section 2. Adds a new subdivision to Section 606 of the tax law that relates to the tax credit for the revenue from the sale of fruits and vegetables to food pantries and soup kitchens to be computed as provided in paragraph 3 of this subsection. Paragraph two declares the amount of credit, as fifty percent of the revenue from sales to food pantries and soup kitchens.

Section 3: relates to the new clause in Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law which is amended to reflect this new tax credit.

Section 4: sets forth the effective date.

Justification

Many New Yorkers are facing significant hardships. Nearly a third of the state is poor or near poverty and over half the children in Rochester, Syracuse and Schenectady live in poverty. The poverty rate for children in Buffalo is nearly 46%. As a result many of our fellow New Yorkers have trouble accessing needed food. According to the USDA food insecurity in new York is rising. According to the Hunger Action Network:

*almost half of the households in New York State with children have had difficulty affording food for themselves and their families;

*nearly 15% of children under the age of 18 are faced with food insecurity;

*nearly half of New York City's households with children can barely afford needed food.

This is unacceptable, especially in a state where 25% of our land is used in agriculture production. Families who face food insecurity must turn to soup kitchens and food pantries. Unfortunately, soup kitchens and food pantries are having trouble keeping up with the demand for food and the food that they do obtain tends to lack the nutritional content required to maintain good health. The lower nutritional value in these foods results in negative impacts to overall health. A New York City food bank report found that 20% of the NYC residents receiving food from soup kitchens and food pantries, have been diagnosed with diabetes and 10Ö/0 with heart disease.

This bill will create an incentive for farms in New York to sell fresh fruits and vegetables to food pantries and soup kitchens thereby helping to feed our needy children while also providing more healthy food for those in need. This will have positive health effects and could result in lowered medical costs. The goal of this legislation is to get fresh, nutritious, locally grown food to families and individuals in need.

Legislative history

A new bill.

Fiscal implications

If enacted, this measure would result in a reduction of State revenue of approximately $100,000 in SFY 2016-17 and $500,000 annually thereafter.

Local fiscal implications

None.

Effective date

This act shall take effect which will be immediately, provided, however, that the credits established by sections one, two and three of this act shall apply to taxable years beginning on or after January 1, 2017.