Bill > S3147

This bill provides tax credits for commercial farm operators, defined as those primarily responsible for the day-to-day operation of a farm where fruits and vegetables are grown and harvested, who donate produce fit for human consumption to food banks located in the state. For donations made between January 1, 2016, and January 1, 2021, these operators can receive a tax credit equal to 10% of the wholesale value of the donated produce. The wholesale value is determined by either the farm operator's average wholesale sales price for similar produce in the month of donation or, if no such sales occurred, by the average price at the nearest terminal market. To claim the credit, the farm operator must obtain a written statement from the food bank detailing the donation, including the variety, grade, quantity, wholesale value, and origin of the produce. This credit can be applied against either the corporation business tax or the gross income tax, but it cannot exceed 50% of the tax liability due and can be carried forward for up to 20 years if not fully used. The Director of the Division of Taxation will also prepare an annual report detailing the utilization of these tax credits, including information on the number of taxpayers, total credit value, wholesale value of donations, and the locations and timing of these donations.