S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8138
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 31, 2017
                                ___________
 
 Introduced  by  M. of A. MORELLE -- Multi-Sponsored by -- M. of A. DICK-
   ENS, GOTTFRIED, LUPARDO, MAGNARELLI, NIOU, WILLIAMS, WOERNER  --  read
   once and referred to the Committee on Ways and Means
 
 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  ASSEM-
 BLY, 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.
                                                            LBD11578-03-7
              

 A. 8138                             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 SUBDIVI-
 SION, 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  COMMU-
 NICATION  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 CREDIT-
 ED 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 SUBDIVI-
 SION, TO DETERMINE THE WHOLESALE  VALUE  OF  APPARENTLY  WHOLESOME  FOOD

 A. 8138                             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 COMMU-
 NICATION 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 CREDIT-
 ED 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.