Bill > S08878

This bill, known as the "New York State Food Rescue Tax Credit Act," establishes a tax credit for businesses that donate surplus food to eligible nonprofit food assistance organizations, which are defined as 501(c)(3) organizations primarily involved in food rescue and distribution to those in need. Eligible taxpayers include a wide range of food-related businesses, farmers, and manufacturers. The credit allows businesses to claim 65% of the fair market value of "qualified food donations" – wholesome, edible food fit for human consumption that meets safety standards – plus 100% of documented transportation and storage expenses related to these donations. Importantly, this credit is refundable, meaning businesses can receive a refund if the credit exceeds their tax liability, and it can also be transferred or assigned to another eligible taxpayer. There's an annual statewide cap of $75 million on the total credits allowed, unless increased by appropriation, and the Department of Taxation and Finance will work with the Department of Agriculture and Markets to ensure program integrity and verify the eligibility of recipient organizations and the quality of donated food. The bill also mandates reporting on the credit's impact, including pounds of food diverted from waste and estimated meals provided, and requires an outreach program to inform businesses about this new incentive.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S8878