S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1336
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 17, 2023
                                ___________
 
 Introduced  by  M.  of A. CLARK, KELLES -- 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 59 to read as follows:
   59.  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-FOUR. 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04497-01-3
              

 A. 1336                             2
 
   (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 SECTION 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
 (ooo) to read as follows:
   (OOO) 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-FOUR. 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  SUBSECTION,  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  SUBSECTION,  THE  TERM
 "ELIGIBLE  TAXPAYER"  MEANS  A  GROCERY  STORE, FOOD BROKER, WHOLESALER,
 RESTAURANTEUR, OR CATERING SERVICE.
   (D) ELIGIBLE FOOD PANTRY. FOR PURPOSES OF THIS  SUBSECTION,  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 SUBSECTION,
 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.
 A. 1336                             3

   (F) RECORD OF DONATION. TO CLAIM A CREDIT UNDER  THIS  SUBSECTION,  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  SUBSECTION
 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 SUBSECTION 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 (l) to read as follows:
 (L) GROCERY STORE DONATIONS          AMOUNT OF CREDIT UNDER
 TO FOOD PANTRIES CREDIT UNDER        SUBDIVISION FIFTY-NINE OF
 SUBSECTION (OOO)                     SECTION TWO HUNDRED TEN-B
   § 4. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2024.