Bill > S1802

Introduced Session

This bill provides a credit against the corporation business tax and the gross income tax for the value of certain donations of fruits and vegetables that are made to food banks by commercial farm operators over a five-year period beginning January 1, 2019. The purpose of the bill is to provide a financial incentive that will encourage commercial farm operators to donate surplus crops of fruits and vegetables to local area food banks. Under the bill, commercial farm operators who make donations of fruits or vegetables, fit for human consumption, to a food bank located in this State during tax periods beginning on or after January 1, 2019, but before January 1, 2024, are allowed to claim a credit that can be used to reduce the commercial farm operator's tax liability. The bill provides that the amount of the credit is equal to 10 percent of the wholesale value of the fruits or vegetables donated during the tax period of the donation. The bill requires commercial farm operators claiming the credit to obtain a written statement from the food bank to substantiate each donation of fruits or vegetables. The bill specifies that commercial farm operators must include a copy of each statement issued by a food bank when filing a return that includes a claim for the credit. The bill requires the Director of the Division of Taxation in the Department of the Treasury to prepare an annual report on the utilization of the credits provided by the bill. The bill provides that the report is to be prepared to document the utilization of credits by commercial farm operators in each year of the five-year period for which credits are allowed, and, at a minimum, is to describe: the number of taxpayers claiming the tax credits, the total dollar value of tax credits claimed by commercial farm operators, the wholesale value of fruits and vegetables donated, the counties in which the greatest percentage of donated fruits or vegetables were harvested, the months in which the greatest percentage of fruits and vegetables were donated, and the food banks benefiting from the donated fruits and vegetables.

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Teresa Ruiz (D)*, 

Introduced in the Senate, Referred to Senate Economic Growth Committee (on 02/24/2020)