101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5380

 

Introduced , by Rep. Terri Bryant - Grant Wehrli - Avery Bourne - Amy Grant - Patrick Windhorst

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/232 new

    Amends the Illinois Income Tax Act. Creates an income tax credit to taxpayers that own and operate a small farm and make a qualifying food commodity donation to a food bank or emergency feeding organization. Provides that the credit shall be equal to the lesser of $5,000 or 15% of the value of the food commodity donated. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by adding
5Section 232 as follows:
 
6    (35 ILCS 5/232 new)
7    Sec. 232. Credit for food donations.
8    (a) For taxable years beginning on or after January 1,
92020, there shall be allowed a credit against the tax imposed
10by subsections (a) and (b) of Section 201 of this Act to
11qualifying taxpayers that own and operate a qualifying small
12farm and make a qualifying food commodity donation to a food
13bank or emergency feeding organization. The credit shall be in
14an amount equal to the lesser of $5,000 or 15% of the value of
15the food commodity donated.
16    (b)For the purposes of this Section:
17        "Qualifying food commodity" means food that meets all
18    quality and labeling standards imposed by federal, State,
19    and local laws and regulations, even though the food may
20    not be readily marketable due to the appearance, age,
21    freshness, grade, size, surplus, or other conditions.
22    Qualifying food commodity does not mean food that is
23    damaged, out of condition, or unfit for human consumption.

 

 

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1        "Qualifying small farm" means a small family farm,
2    rural-residence family farm, or intermediate family farms,
3    as defined by the United States Department of Agriculture's
4    Economic Research Service, that has gross sales of less
5    than $250,000 per year and is located in the State.
6        "Qualifying taxpayer" means an Illinois resident who:
7    (i) owns and operates a qualifying small farm in the State;
8    (ii) produces the donated food commodity; and (iii)
9    transfers ownership of the donated food commodity to an
10    Illinois food bank or emergency feeding organization.
11    (c) In no event shall a credit under this Section reduce a
12taxpayer's liability to less than zero. If the amount of the
13credit exceeds the tax liability for the year, the excess may
14be carried forward and applied to the tax liability for the 5
15taxable years following the excess credit year. The tax credit
16shall be applied to the earliest year for which there is a tax
17liability. If there are credits for more than one year that are
18available to offset liability, the earliest credit shall be
19applied first.
20    (d) The Department shall adopt rules to implement the
21provisions of this Section and may work with the United States
22Department of Agriculture or any other relevant agency to
23implement the provisions of this Section.
24    (e) This Section is exempt from the provisions of Section
25250.
 
26    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.