Bill S5431A-2015

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

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.

Details

Actions

  • Jun 18, 2015: returned to senate
  • Jun 18, 2015: passed assembly
  • Jun 18, 2015: ordered to third reading rules cal.590
  • Jun 18, 2015: substituted for a8075
  • Jun 16, 2015: referred to ways and means
  • Jun 16, 2015: DELIVERED TO ASSEMBLY
  • Jun 16, 2015: PASSED SENATE
  • Jun 16, 2015: ORDERED TO THIRD READING CAL.1629
  • Jun 16, 2015: COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • Jun 1, 2015: PRINT NUMBER 5431A
  • Jun 1, 2015: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • May 14, 2015: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Votes

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.


Text

STATE OF NEW YORK ________________________________________________________________________ 5431--A 2015-2016 Regular Sessions IN SENATE 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
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.
(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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