What's happening
This bill creates a tax credit for grocery stores and similar businesses that donate food to eligible food pantries in New York.
Why it matters
Targets food waste reduction. By incentivizing donations of surplus or about-to-expire food, the bill is likely to decrease the amount of edible food sent to landfills, which has environmental benefits and addresses inefficiencies in the food supply chain.
Supports food security efforts. The credit is only available for donations to food pantries, food banks, or emergency food programs that are 501(c)(3) nonprofits in New York, meaning the policy is directly aimed at strengthening organizations that provide food to people experiencing hunger.
Encourages broader participation. The bill defines “eligible taxpayer” broadly to include grocery stores, food brokers, wholesalers, restauranteurs, and catering services, potentially increasing the variety and volume of foods available to food pantries.
Establishes clear accountability and valuation. The requirement for detailed receipts and use of federal standards for determining the “wholesale value” of donations creates a transparent process, likely reducing fraud and making it easier for both donors and recipients to comply with the law.
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Who cares
Grocery stores, food brokers and wholesalers
They could claim a tax credit worth 25% of the wholesale value of qualifying food donations, capped at $5,000 per taxable year.
Restaurant operators and catering services
They would also qualify for the credit when donating apparently wholesome surplus or about-to-waste food to eligible food programs.
New York nonprofit food pantries, food banks and emergency food programs
Donations to qualifying tax-exempt programs would qualify for the credit, donors would need written donation receipts, and local food pantries could reject donations for any reason.
Headline styles
Tax Credit for Food Donations
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
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 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 twenty. 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.
LBD06974-02-9
S. 1241 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 (jjj) to read as follows:
(jjj) 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 twenty. 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. 1241 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 (jjj) section two hundred ten-B
§ 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2020.
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
Purpose
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 Emer- son Good Samaritan Food Act and other tax deductions, strict require- ments 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 signif- icant 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 assist- ing our businesses. The opportunities are best focused on the surplus and about-towaste foods that these businesses must dispose of every day. For example, a national analysis showed that grocery stores and super- markets 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.
Legislative history
2017-18: S.6083A Passed Senate
Fiscal implications
Subject to appropriation
Effective date
This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2020.
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