What's happening
This bill creates a tax credit for businesses that donate groceries to food pantries, covering 25% of the wholesale value up to $5,000 per year.
Why it matters
Encourages businesses to donate surplus or near-expiring food. by turning potential waste into a tax benefit, which could help reduce food waste at the retail and distribution level and increase food pantry supplies.
Applies to a broad range of food businesses. (grocery stores, food brokers, wholesalers, restaurants, and catering services), potentially expanding the pool of participants and increasing the variety and volume of food available to those in need.
Requires clear documentation and oversight. , as businesses must obtain specific receipts from food pantries, ensuring donations are tracked, legitimate, and properly valued, which helps maintain accountability in the program.
Limits financial risk to the state. by capping the annual tax credit per business and specifying that excess credits are refunded or carried over without accruing interest, thus providing a balance between incentivizing donations and protecting state tax revenues.
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Who cares
Headline styles
Reward Grocery Food Donations
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 63–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.482
- Referred to investigations and government operations
- Print number 6083a
- Amend and recommit to investigations and government operations
- 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.
Tax Credit for Food Donations
In Assembly Committee · Ways And Means · Sponsor Joseph Morelle
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6083--A
2017-2018 Regular Sessions
IN SENATE
May 11, 2017
Introduced by Sen. SERINO -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
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 Assembly, do enact as follows:
Section 1. Section 210-b of the tax law is amended by adding a new subdivision 53 to read as follows:
53. Credit for grocery donations to food pantries. (a) General. In the case of an eligible taxpayer there shall be allowed a tax credit to be computed as hereinafter provided against the tax imposed by this article for taxable years beginning on and after January first, two thousand nineteen. The amount of the tax credit shall be twenty-five percent of the wholesale value of the eligible taxpayer's qualified donations made to any eligible food pantry during the taxable year, not to exceed a cumulative amount of tax credits under this section of five thousand dollars per taxable year.
(b) Qualified donation. For purposes of this subdivision, the term "qualified donation" means a donation of apparently wholesome food, as defined in section 170(e)(3)(C)(vi) of the internal revenue code, that is surplus or about-to-waste food, including, but not limited to, fruits, vegetables, meats, poultry, eggs, dairy products or other natural and processed products offered for sale for human or animal consumption.
(c) Eligible taxpayer. For purposes of this subdivision, the term "eligible taxpayer" means a grocery store, food broker, wholesaler, restauranteur, or catering service.
(d) Eligible food pantry. For purposes of this subdivision, the term "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.
LBD11578-02-7
S. 6083--A 2
food program operating within this state that has qualified for tax exemption under section 501(c)(3) of the internal revenue code.
(e) Determination of wholesale value. For purposes of this subdivision, to determine the wholesale value of apparently wholesome food donated to an eligible food pantry, the standards set forth under section 170 (e)(3)(C)(v) of the internal revenue code shall apply.
(f) Record of donation. To claim a credit under this subdivision, an eligible taxpayer must get and keep a receipt from the eligible food pantry showing: (1) the name of the eligible food pantry; (2) the date and location of the qualified donation; and (3) a reasonably detailed description of the qualified donation. A letter or other written communication from the eligible food pantry acknowledging receipt of the contribution and containing the information in subparagraphs one, two, and three of this paragraph will serve as a receipt. Any local food pantry may accept or reject any donation of food made under this section for any reason. For purposes of this section, any donations of food accepted by a local food pantry shall be valued at wholesale value.
(g) Application of credit. The credit allowed under this subdivision for any taxable year will not reduce the tax due for such year to less than the amount prescribed in paragraph (d) of subdivision one of section two hundred ten of this article. However, if the amount of credit allowed under this subdivision for any taxable year reduces the tax to such amount or if the taxpayer otherwise pays tax based on the fixed dollar minimum amount, any amount of credit thus not deductible in such taxable year will be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section one thousand eighty-six of this chapter. Provided, however, the provisions of subsection (c) of section one thousand eighty-eight of this chapter notwithstanding, no interest will be paid thereon.
§ 2. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows:
(ccc) Credit for grocery donations to food pantries. (a) General. In the case of an eligible taxpayer there shall be allowed a tax credit to be computed as hereinafter provided against the tax imposed by this article for taxable years beginning on and after January first, two thousand nineteen. The amount of the tax credit shall be twenty-five percent of the wholesale value of the eligible taxpayer's qualified donations made to any eligible food pantry during the taxable year, not to exceed a cumulative amount of tax credits under this section of five thousand dollars per taxable year.
(b) Qualified donation. For purposes of this subdivision, the term "qualified donation" means a donation of apparently wholesome food, as defined in section 170(e)(3)(C)(vi) of the internal revenue code, that is surplus or about-to-waste food, including, but not limited to, fruits, vegetables, meats, poultry, eggs, dairy products or other natural and processed products offered for sale for human or animal consumption.
(c) Eligible taxpayer. For purposes of this subdivision, the term "eligible taxpayer" means a grocery store, food broker, wholesaler, restauranteur, or catering service.
(d) Eligible food pantry. For purposes of this subdivision, the term "eligible food pantry" means food pantry, food bank, or other emergency food program operating within this state that has qualified for tax exemption under section 501(c)(3) of the internal revenue code.
(e) Determination of wholesale value. For purposes of this subdivision, to determine the wholesale value of apparently wholesome food
S. 6083--A 3
donated to an eligible food pantry, the standards set forth under section 170 (e)(3)(C)(v) of the internal revenue code shall apply.
(f) Record of donation. To claim a credit under this subdivision, an eligible taxpayer must get and keep a receipt from the eligible food pantry showing: (1) the name of the eligible food pantry; (2) the date and location of the qualified donation; and (3) a reasonably detailed description of the qualified donation. A letter or other written communication from the eligible food pantry acknowledging receipt of the contribution and containing the information in subparagraphs one, two, and three of this paragraph will serve as a receipt. Any local food pantry may accept or reject any donation of food made under this section for any reason. For purposes of this section, any donations of food accepted by a local food pantry shall be at valued wholesale value.
(g) Application of credit. The credit allowed under this subdivision for any taxable year will not reduce the tax due for such year to less than the amount prescribed in paragraph (d) of subdivision one of section two hundred ten of this chapter. However, if the amount of credit allowed under this subdivision for any taxable year reduces the tax to such amount or if the taxpayer otherwise pays tax based on the fixed dollar minimum amount, any amount of credit thus not deductible in such taxable year will be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section one thousand eighty-six of this chapter. Provided, however, the provisions of subsection (c) of section one thousand eighty-eight of this chapter notwithstanding, no interest will be paid thereon.
§ 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xliv) to read as follows: (xliv) Grocery store donations Amount of credit under to food pantries credit under subdivision fifty-three of subsection (ccc) section two hundred ten-B
§ 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2019.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to establishing a tax credit for grocery donations to food pantries
Title of bill
An act to amend the tax law, in relation to establishing a tax credit for grocery donations to food pantries
Purpose or general idea of bill
Amends the tax law, in relation to establishing a tax credit for grocery donations to food pantries
Summary of provisions
Section 1 of the bill amends section 210-b of the tax law by adding a new subdivision 53 to provide for tax credits for grocery stores, food brokers, wholesalers, restauranteurs, or catering services that donate surplus or about-to-waste food to local food pantries.
Section 2 of the bill amends section 606 of the tax law to add a new subsection (ccc) to provide for tax credits for specified taxpayers who donate surplus or about-to-waste food to local food pantries.
Section 3 of the bill amends subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law to add a new clause (xiiv) to provide for the specified tax credits.
Section 4 of the bill provides for the effective date.
Justification
Food waste has become a topic of international debate as countries including France have begun mandating grocers to donate surplus and about-to-waste food. While the United States has incentives at the federal level to compel grocers to donate food, including the Bill Emerson Good Samaritan Food Act and other tax deductions, strict requirements regarding donation, like those in the international context, could become problematic given strict food safety requirements and projected costs in the U.S.
Nevertheless, food waste remains a concern across the country and in New York. For example, in 2014 New York ranked among the top twenty states with the worst food hardship. It was estimated that more than 3 million New Yorkers relied on nutrition assistance programs - one third of those people being children. To that end, AARP estimated that of the nine million Americans over the age of 50 that were facing the threat of hunger, 7% resided in New York State. Given the significant impact that hunger poses to our most vulnerable, it is imperative that we take steps to address hunger throughout our state.
With that said, through the opportunities for collaboration with food providers, including grocery stores, restauranteurs, and catering services, among others, we can promote food donation while also assisting our businesses. The opportunities are best focused on the surplus and about-to-waste foods that these businesses must dispose of every day. For example, a national analysis showed that grocery stores and supermarkets in the United States threw out 43 billion pounds, or $46.7 billion worth, of food in 2010. This legislation will provide important tax credits to these grocery stores and food distributors to donate to local food banks when they have surplus and about-to-waste foods rather than throwing them out. This will bolster the relationship between our local food pantries and our businesses to help build community supports and begin to address hunger at a local level.
Prior legislative history
New bill.
Fiscal implications for state and local governments
Subject to appropriation
Effective date
This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2019.
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