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Sponsors
3 Co-sponsors
History
- Substituted by A10584
- Ordered to third reading cal.1945
- Committee discharged and committed to rules
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to establishing a credit for donation to a food bank or other emergency food program by New York state farmers
Vetoed · Sponsor Francisco Moya
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
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
Purpose or general idea of bill
To create a credit for donation to a food bank or other emergency food program by New York state farmers of twenty five percent of wholesale cost of donations, up to five thousand dollars per year.
Specific provisions
Section one amends the tax law to add subsection (n-1) to section 606 creating a credit for farm donations to food bank or emergency food program. Allowing an eligible farmer, who must be a New York State resident taxpayer, a credit of twenty-five percent of the wholesale cost of the taxpayer's qualified donations, up to five thousand dollars per year.
Read the full memo (637 words)
Section two amends the tax law by adding a new clause to subparagraph (B) of paragraph 1 of subsection (i) to add farm donations to food bank or emergency food program credit under subsection (n-1)
Section three amends the tax law by adding a new subdivision 51 to section 210-B for the credit for farm donations to food bank or emergency food program.
Section four ensures that the department of agriculture and markets, in conjunction with the department of taxation and finance establish an accepted wholesale price of the taxpayer's qualified donations and promulgate any necessary rules and regulations.
Section five sets forth the effective date
Justification
New York farmers have historically been very generous in donating food to those in need and in 2014 they donated a record amount. of more than 10 million pounds of food to the statewide food bank system It is only natural for the people who grow food to want all members of their community to have access to that food, especially the neediest among them. While the economy is rebounding and employment is increasing, there are still an alarming number of families that continue to seek the assistance of the food pantries, soup kitchens and other feeding programs that are serviced by the food bank system in New York State.
There is even more food in the state that could be donated, but farmers face some real barriers to getting this unharvested or unmarketed food into the emergency food system. Sometimes the real costs of labor to harvest additional food from the fields, the cost of the boxes or bins to package it, and the expense to transport this all to the food bank are too great to overcome. A tax credit would help farmers re-coop some of these expenses so that a donation does not incur such a great out-of-pocket expense for the farmer. This tax credit would help remove part of the barrier to greater donations.
Farmers can receive a tax credit for charitable donations of food at the federal level, but this credit cannot be used by sole proprietors and many others because of the accounting methods required. The federal deduction is a based on the basis of the donated product and farmers that use a cash method of accounting, which is used by almost all farmers in New York, can't calculate a basis and therefore are prevented from using the federal credit. In addition, it has not been enough of an incentive to remove all of the cost barriers to greater food donations that farmers in New York face. A state tax credit will benefit both the farmers who wish to provide more donations and the families will be able to receive this healthy, wholesome, locally grown food.
Prior legislative history
New Bill
Fiscal implications
To be determined
Effective date
This act shall take effect on January 1, 2017 and shall apply to taxable years beginning on or after such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.