NY State Senate Bill 2015-S5431A

Senate Bill S5431A

Vetoed By Governor

2015-2016 Legislative Session

Relates to a credit for donation to a food bank or other emergency food program by New York state farmers

download bill text pdf

Archive: Last Bill Status - Vetoed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Vetoed By Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 11, 2015	vetoed memo.299
Nov 30, 2015	delivered to governor
Jun 18, 2015	returned to senate passed assembly ordered to third reading rules cal.590 substituted for a8075
Jun 16, 2015	referred to ways and means delivered to assembly passed senate ordered to third reading cal.1629 committee discharged and committed to rules
Jun 01, 2015	print number 5431a
Jun 01, 2015	amend and recommit to investigations and government operations
May 14, 2015	referred to investigations and government operations

Votes

- Jun 16, 2015 - Floor Vote
  S5431A
  
  63
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 16, 2015
      
      aye (63)
      
      Addabbo Jr.
      
      Amedore
      
      Avella
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Carlucci
      
      Comrie
      
      Croci
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Espaillat
      
      Farley
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Hassell-Thompson
      
      Hoylman-Sigal
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Libous
      
      Little
      
      Marcellino
      
      Marchione
      
      Martins
      
      Montgomery
      
      Murphy
      
      Nozzolio
      
      O'Mara
      
      Ortt
      
      Panepinto
      
      Parker
      
      Peralta
      
      Perkins
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sampson
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Skelos
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Valesky
      
      Venditto
      
      Young
  Jun 16, 2015 - Rules Committee Vote
  S5431A
  
  24
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 16, 2015
      
      aye (24)
      
      Bonacic
      
      Breslin
      
      Carlucci
      
      Dilan
      
      Espaillat
      
      Farley
      
      Flanagan
      
      Hannon
      
      Hassell-Thompson
      
      Krueger
      
      LaValle
      
      Larkin
      
      Libous
      
      Little
      
      Marcellino
      
      Montgomery
      
      Nozzolio
      
      Parker
      
      Perkins
      
      Seward
      
      Skelos
      
      Stewart-Cousins
      
      Valesky
      
      Young
      
      aye wr (1)
      
      Gianaris

Bill Amendments

Original

A (Active)

2015-S5431 - Details

See Assembly Version of this Bill:: A8075
Law Section:: Tax Law
Laws Affected:: Amd §§606 & 210-B, Tax L
Versions Introduced in 2017-2018 Legislative Session:: A6192

2015-S5431 - Summary

Relates to a tax credit for donation of wholesome food to a food bank or other emergency food program by eligible New York state farmers.

2015-S5431 - Sponsor Memo

                                BILL NUMBER:S5431

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.

SUMMARY OF 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 a credit of twenty-five percent
of the wholesale cost of the taxpayer's qualified donations, up to
five thousand dollars per year.

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 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 the first of January
next succeeding the date on which it shall have become a law and shall
apply to taxable years beginning on or after such date.

2015-S5431 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5431

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              May 14, 2015
                               ___________

Introduced  by  Sen.  FUNKE  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

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

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
subsection (n-1) to read as follows:
  (N-1)  CREDIT  FOR  FARM  DONATIONS  TO  FOOD  BANK  OR EMERGENCY FOOD
PROGRAM. (1) GENERAL. IN THE CASE OF A TAXPAYER WHO IS AN ELIGIBLE FARM-
ER, THERE SHALL BE ALLOWED A  CREDIT,  TO  BE  COMPUTED  AS  HEREINAFTER
PROVIDED  AGAINST  THE  TAX IMPOSED BY THIS ARTICLE FOR TAXABLE YEARS ON
AND AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN. THE AMOUNT OF THE  CREDIT
SHALL  BE  TWENTY-FIVE  PERCENT  OF THE WHOLESALE COST OF THE TAXPAYER'S
QUALIFIED DONATIONS, AS DEFINED IN PARAGRAPH THREE OF  THIS  SUBSECTION,
MADE  TO  ANY  FOOD  BANK  OR OTHER PUBLIC, CHARITABLE OR NOT-FOR-PROFIT
EMERGENCY FOOD PROGRAM OPERATING WITHIN THIS STATE, UP TO FIVE  THOUSAND
DOLLARS PER YEAR.
  (2) ELIGIBLE FARMER. FOR PURPOSES OF THIS SUBSECTION, THE TERM "ELIGI-
BLE FARMER" MEANS A TAXPAYER WHOSE FEDERAL GROSS INCOME FROM FARMING FOR
THE  TAXABLE YEAR IS AT LEAST TWO-THIRDS OF EXCESS FEDERAL GROSS INCOME.
EXCESS FEDERAL GROSS INCOME MEANS THE AMOUNT  OF  FEDERAL  GROSS  INCOME
FROM  ALL SOURCES FOR THE TAXABLE YEAR REDUCED BY THE SUM (NOT TO EXCEED
THIRTY THOUSAND DOLLARS) OF THOSE ITEMS INCLUDED IN FEDERAL GROSS INCOME
WHICH CONSIST OF (I) EARNED INCOME,  (II)  PENSION  PAYMENTS,  INCLUDING
SOCIAL  SECURITY  PAYMENTS,  (III)  INTEREST,  AND  (IV)  DIVIDENDS. FOR
PURPOSES OF THIS PARAGRAPH, THE TERM "EARNED INCOME" SHALL  MEAN  WAGES,
SALARIES, TIPS AND OTHER EMPLOYEE COMPENSATION, AND THOSE ITEMS OF GROSS
INCOME  WHICH  ARE  INCLUDIBLE  IN  THE COMPUTATION OF NET EARNINGS FROM
SELF-EMPLOYMENT. FOR THE PURPOSES OF THIS PARAGRAPH, PAYMENTS  FROM  THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11050-02-5

S. 5431                             2

STATE'S  FARMLAND  PROTECTION PROGRAM, ADMINISTERED BY THE DEPARTMENT OF
AGRICULTURE AND MARKETS, SHALL BE INCLUDED AS FEDERAL GROSS INCOME  FROM
FARMING FOR OTHERWISE ELIGIBLE FARMERS.
  (3)  QUALIFIED  DONATION.  FOR  PURPOSES  OF THIS SUBSECTION, THE TERM
"QUALIFIED DONATION" MEANS A DONATION OF ANY FRESH FOOD  ITEM  GROWN  OR
PRODUCED  BY  AN  ELIGIBLE FARMER TO A FOOD BANK OR OTHER EMERGENCY FOOD
PROGRAM OPERATING WITHIN THIS STATE.
  (4) APPLICATION OF CREDIT. THE CREDIT ALLOWED  UNDER  THIS  SUBSECTION
FOR  ANY  TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE MINIMUM TAX FIXED BY THIS ARTICLE.  HOWEVER, IF THE  AMOUNT  OF
CREDIT  ALLOWED  UNDER  THIS SUBSECTION FOR ANY TAXABLE YEAR REDUCES THE
TAX TO SUCH 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.
  S  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new  clause  (xliii)  to  read  as
follows:
(XLIII) FARM DONATIONS TO FOOD       AMOUNT OF CREDIT UNDER
BANK OR EMERGENCY FOOD PROGRAM       SUBDIVISION FIFTY-ONE
CREDIT UNDER SUBSECTION (N-1)        OF SECTION TWO HUNDRED
                                     TEN-B
  S  3. Section 210-B of the tax law is amended by adding a new subdivi-
sion 51 to read as follows:
  51. CREDIT FOR FARM DONATIONS TO FOOD BANK OR EMERGENCY FOOD PROGRAM.
  (A) GENERAL. IN THE CASE OF A TAXPAYER  WHO  IS  AN  ELIGIBLE  FARMER,
THERE  SHALL BE ALLOWED A 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 SIXTEEN. THE AMOUNT OF THE CREDIT
SHALL BE TWENTY-FIVE PERCENT OF THE WHOLESALE  COST  OF  THE  TAXPAYER'S
QUALIFIED  DONATIONS,  AS  DEFINED IN PARAGRAPH (C) OF THIS SUBDIVISION,
MADE TO ANY FOOD BANK OR  OTHER  PUBLIC,  CHARITABLE  OR  NOT-FOR-PROFIT
EMERGENCY  FOOD PROGRAM OPERATING WITHIN THIS STATE, UP TO FIVE THOUSAND
DOLLARS DURING THE TAXABLE YEAR.
  (B) ELIGIBLE FARMER.  FOR  PURPOSES  OF  THIS  SUBDIVISION,  THE  TERM
"ELIGIBLE FARMER" MEANS A TAXPAYER WHOSE FEDERAL GROSS INCOME FROM FARM-
ING  FOR THE TAXABLE YEAR IS AT LEAST TWO-THIRDS OF EXCESS FEDERAL GROSS
INCOME. EXCESS FEDERAL GROSS INCOME MEANS THE AMOUNT  OF  FEDERAL  GROSS
INCOME  FROM ALL SOURCES FOR THE TAXABLE YEAR REDUCED BY THE SUM (NOT TO
EXCEED THIRTY THOUSAND DOLLARS) OF THOSE ITEMS INCLUDED IN FEDERAL GROSS
INCOME WHICH CONSIST  OF  (I)  EARNED  INCOME,  (II)  PENSION  PAYMENTS,
INCLUDING  SOCIAL SECURITY PAYMENTS, (III) INTEREST, AND (IV) DIVIDENDS.
FOR PURPOSES OF THIS PARAGRAPH, THE  TERM  "EARNED  INCOME"  SHALL  MEAN
WAGES,  SALARIES,  TIPS AND OTHER EMPLOYEE COMPENSATION, AND THOSE ITEMS
OF GROSS INCOME WHICH ARE INCLUDIBLE IN THE COMPUTATION OF NET  EARNINGS
FROM  SELF-EMPLOYMENT. FOR THE PURPOSES OF THIS PARAGRAPH, PAYMENTS FROM
THE STATE'S FARMLAND PROTECTION PROGRAM, ADMINISTERED BY THE  DEPARTMENT
OF  AGRICULTURE  AND  MARKETS, SHALL BE INCLUDED AS FEDERAL GROSS INCOME
FROM FARMING FOR OTHERWISE ELIGIBLE FARMERS.
  (C) QUALIFIED DONATION. FOR PURPOSES OF  THIS  SUBDIVISION,  THE  TERM
"QUALIFIED  DONATION"  MEANS  A DONATION OF ANY FRESH FOOD ITEM GROWN OR
PRODUCED BY AN ELIGIBLE FARMER TO A FOOD BANK OR  OTHER  EMERGENCY  FOOD
PROGRAM OPERATING WITHIN THIS STATE.

S. 5431                             3

  (E)  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  MINIMUM TAX FIXED BY THIS ARTICLE.  HOWEVER, IF THE AMOUNT OF
CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR  REDUCES  THE
TAX  TO  SUCH  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.
  S 4. This act shall take effect on the first of January next  succeed-
ing  the  date  on  which  it shall have become a law and shall apply to
taxable years beginning on or after such date.

co-Sponsors

View additional co-sponsors

2015-S5431A (ACTIVE) - Details

See Assembly Version of this Bill:: A8075
Law Section:: Tax Law
Laws Affected:: Amd §§606 & 210-B, Tax L
Versions Introduced in 2017-2018 Legislative Session:: A6192

2015-S5431A (ACTIVE) - Summary

Relates to a tax credit for donation of wholesome food to a food bank or other emergency food program by eligible New York state farmers.

2015-S5431A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5431A

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 a credit of twenty-five percent
of the wholesale cost of the taxpayer's qualified donations, up to
five thousand dollars per year.

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 the first of January
next succeeding the date on which it shall have become a law and shall
apply to taxable years beginning on or after such date.

2015-S5431A (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5431--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              May 14, 2015
                               ___________

Introduced  by  Sen.  FUNKE  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment  Operations  --  committee  discharged,  bill  amended,   ordered
  reprinted as amended and recommitted to said committee

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

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  606  of  the  tax law is amended by adding a new
subsection (n-1) to read as follows:
  (N-1) CREDIT FOR  FARM  DONATIONS  TO  FOOD  BANK  OR  EMERGENCY  FOOD
PROGRAM. (1) GENERAL. IN THE CASE OF A TAXPAYER WHO IS AN ELIGIBLE FARM-
ER,  THERE  SHALL  BE  ALLOWED  A  CREDIT, TO BE COMPUTED AS HEREINAFTER
PROVIDED AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR  TAXABLE  YEARS  ON
AND  AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN. THE AMOUNT OF THE CREDIT
SHALL BE TWENTY-FIVE PERCENT OF THE WHOLESALE  COST  OF  THE  TAXPAYER'S
QUALIFIED  DONATIONS,  AS DEFINED IN PARAGRAPH THREE OF THIS SUBSECTION,
MADE TO ANY FOOD BANK OR  OTHER  PUBLIC,  CHARITABLE  OR  NOT-FOR-PROFIT
EMERGENCY  FOOD PROGRAM OPERATING WITHIN THIS STATE, UP TO FIVE THOUSAND
DOLLARS PER YEAR.
  (2) ELIGIBLE FARMER. FOR PURPOSES OF THIS SUBSECTION, THE TERM "ELIGI-
BLE FARMER" MEANS A TAXPAYER WHOSE FEDERAL GROSS INCOME FROM FARMING FOR
THE TAXABLE YEAR IS AT LEAST TWO-THIRDS OF EXCESS FEDERAL GROSS  INCOME.
EXCESS  FEDERAL  GROSS  INCOME  MEANS THE AMOUNT OF FEDERAL GROSS INCOME
FROM ALL SOURCES FOR THE TAXABLE YEAR REDUCED BY THE SUM (NOT TO  EXCEED
THIRTY THOUSAND DOLLARS) OF THOSE ITEMS INCLUDED IN FEDERAL GROSS INCOME
WHICH  CONSIST  OF  (I)  EARNED INCOME, (II) PENSION PAYMENTS, INCLUDING
SOCIAL SECURITY  PAYMENTS,  (III)  INTEREST,  AND  (IV)  DIVIDENDS.  FOR
PURPOSES  OF  THIS PARAGRAPH, THE TERM "EARNED INCOME" SHALL MEAN WAGES,
SALARIES, TIPS AND OTHER EMPLOYEE COMPENSATION, AND THOSE ITEMS OF GROSS
INCOME WHICH ARE INCLUDIBLE IN THE  COMPUTATION  OF  NET  EARNINGS  FROM

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11050-04-5

S. 5431--A                          2

SELF-EMPLOYMENT.  FOR  THE PURPOSES OF THIS PARAGRAPH, PAYMENTS FROM THE
STATE'S FARMLAND PROTECTION PROGRAM, ADMINISTERED BY THE  DEPARTMENT  OF
AGRICULTURE  AND MARKETS, SHALL BE INCLUDED AS FEDERAL GROSS INCOME FROM
FARMING FOR OTHERWISE ELIGIBLE FARMERS.
  (3)  QUALIFIED  DONATION.  FOR  PURPOSES  OF THIS SUBSECTION, THE TERM
"QUALIFIED DONATION" MEANS A DONATION OF ANY FRESH FOOD  ITEM  GROWN  OR
PRODUCED  BY  AN  ELIGIBLE FARMER TO A FOOD BANK OR OTHER EMERGENCY FOOD
PROGRAM OPERATING WITHIN THIS STATE.
  (4) APPLICATION OF CREDIT. THE CREDIT ALLOWED  UNDER  THIS  SUBSECTION
FOR  ANY  TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE MINIMUM TAX FIXED BY THIS ARTICLE.  HOWEVER, IF THE  AMOUNT  OF
CREDIT  ALLOWED  UNDER  THIS SUBSECTION FOR ANY TAXABLE YEAR REDUCES THE
TAX TO SUCH 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.
  S  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new  clause  (xliii)  to  read  as
follows:
(XLIII) FARM DONATIONS TO FOOD       AMOUNT OF CREDIT UNDER
BANK OR EMERGENCY FOOD PROGRAM       SUBDIVISION FIFTY-ONE
CREDIT UNDER SUBSECTION (N-1)        OF SECTION TWO HUNDRED
                                     TEN-B
  S  3. Section 210-B of the tax law is amended by adding a new subdivi-
sion 51 to read as follows:
  51. CREDIT FOR FARM DONATIONS TO FOOD BANK OR EMERGENCY FOOD PROGRAM.
  (A) GENERAL. IN THE CASE OF A TAXPAYER  WHO  IS  AN  ELIGIBLE  FARMER,
THERE  SHALL BE ALLOWED A 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 SIXTEEN. THE AMOUNT OF THE CREDIT
SHALL BE TWENTY-FIVE PERCENT OF THE WHOLESALE  COST  OF  THE  TAXPAYER'S
QUALIFIED  DONATIONS,  AS  DEFINED IN PARAGRAPH (C) OF THIS SUBDIVISION,
MADE TO ANY FOOD BANK OR  OTHER  PUBLIC,  CHARITABLE  OR  NOT-FOR-PROFIT
EMERGENCY  FOOD PROGRAM OPERATING WITHIN THIS STATE, UP TO FIVE THOUSAND
DOLLARS DURING THE TAXABLE YEAR.
  (B) ELIGIBLE FARMER.  FOR  PURPOSES  OF  THIS  SUBDIVISION,  THE  TERM
"ELIGIBLE FARMER" MEANS A TAXPAYER WHOSE FEDERAL GROSS INCOME FROM FARM-
ING  FOR THE TAXABLE YEAR IS AT LEAST TWO-THIRDS OF EXCESS FEDERAL GROSS
INCOME. EXCESS FEDERAL GROSS INCOME MEANS THE AMOUNT  OF  FEDERAL  GROSS
INCOME  FROM ALL SOURCES FOR THE TAXABLE YEAR REDUCED BY THE SUM (NOT TO
EXCEED THIRTY THOUSAND DOLLARS) OF THOSE ITEMS INCLUDED IN FEDERAL GROSS
INCOME WHICH CONSIST  OF  (I)  EARNED  INCOME,  (II)  PENSION  PAYMENTS,
INCLUDING  SOCIAL SECURITY PAYMENTS, (III) INTEREST, AND (IV) DIVIDENDS.
FOR PURPOSES OF THIS PARAGRAPH, THE  TERM  "EARNED  INCOME"  SHALL  MEAN
WAGES,  SALARIES,  TIPS AND OTHER EMPLOYEE COMPENSATION, AND THOSE ITEMS
OF GROSS INCOME WHICH ARE INCLUDIBLE IN THE COMPUTATION OF NET  EARNINGS
FROM  SELF-EMPLOYMENT. FOR THE PURPOSES OF THIS PARAGRAPH, PAYMENTS FROM
THE STATE'S FARMLAND PROTECTION PROGRAM, ADMINISTERED BY THE  DEPARTMENT
OF  AGRICULTURE  AND  MARKETS, SHALL BE INCLUDED AS FEDERAL GROSS INCOME
FROM FARMING FOR OTHERWISE ELIGIBLE FARMERS.
  (C) QUALIFIED DONATION. FOR PURPOSES OF  THIS  SUBDIVISION,  THE  TERM
"QUALIFIED  DONATION"  MEANS  A DONATION OF ANY FRESH FOOD ITEM GROWN OR
PRODUCED BY AN ELIGIBLE FARMER TO A FOOD BANK OR  OTHER  EMERGENCY  FOOD
PROGRAM OPERATING WITHIN THIS STATE.

S. 5431--A                          3

  (D)  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  MINIMUM TAX FIXED BY THIS ARTICLE.  HOWEVER, IF THE AMOUNT OF
CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR  REDUCES  THE
TAX  TO  SUCH  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.
  S 4. The department of agriculture and markets,  in  conjunction  with
the  department  of  taxation  and  finance, shall establish an accepted
wholesale price of the taxpayer's qualified donations and promulgate any
necessary rules and regulations.
  S 5. This act shall take effect on the first of January next  succeed-
ing  the  date  on  which  it shall have become a law and shall apply to
taxable years beginning on or after such date.

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Senate Bill S5431A

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Rich Funke