NY State Senate Bill 2019-S1241

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to investigations and government operations
Jan 11, 2019	referred to investigations and government operations

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2019-S1241 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§210-B & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S6083
2021-2022: S2147

2019-S1241 (ACTIVE) - Summary

Establishes a tax credit for grocery donations to food pantries.

2019-S1241 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S1241

SPONSOR: SERINO
 
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.

2019-S1241 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1241
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             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 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  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 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
 (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 SUBDIVI-
 SION, 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 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 (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.

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Senate Bill S1241

Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

co-Sponsors

2019-S1241 (ACTIVE) - Details

2019-S1241 (ACTIVE) - Summary

2019-S1241 (ACTIVE) - Sponsor Memo

2019-S1241 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S1241

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Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

co-Sponsors

2019-S1241 (ACTIVE) - Details

2019-S1241 (ACTIVE) - Summary

2019-S1241 (ACTIVE) - Sponsor Memo

2019-S1241 (ACTIVE) - Bill Text download pdf

Comments