AB 515, as introduced, Eggman. Personal income tax credit: food bank donations.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including a credit for qualified taxpayers, as defined, in an amount equal to a specified percentage of the cost that would otherwise be included in inventory costs, as specified, with respect to the donation of fresh fruits or fresh vegetables to food banks located in California.
This bill would make a nonsubstantive change to the personal income tax provision.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 17053.88 of the Revenue and Taxation
2Code is amended to read:
(a) In the case of a qualified taxpayer who donates
4fresh fruits or fresh vegetables to a food bank located in California
5under Chapter 5 (commencing with Section 58501) of Part 1 of
6Division 21 of the Food and Agricultural Code, for taxable years
P2 1beginning on or after January 1, 2012, and before January 1, 2017,
2there shall be allowed, without regard to the taxpayer’s method of
3accounting, as a credit against the “net tax” (as defined by Section
417039), an amount equal to 10 percent of the cost that would
5otherwise be included in inventory costs under Section 263A of
6the Internal Revenue Code, or that would be required to be included
7in inventory costs under Section 263A of the Internal Revenue
8Code, but for the exception for farming businesses contained in
9Section 263A(d) of the Internal Revenue Code, with respect to
10those
fresh fruits or fresh vegetables.
11(b) For purposes of this section, “qualified taxpayer” means the
12person responsible for planting a crop, managing the crop, and
13harvesting the crop from land.
14(c) If the credit allowed by this section is claimed by the
15qualified taxpayer, any deduction otherwise allowed under this
16part for that amount of the cost paid or incurred by the qualified
17taxpayer that is eligible for the credit shall be reduced by the
18amount of the credit provided in subdivision (a).
19(d) The donor shall provide to the nonprofit organization the
20estimated value of the donated fresh fruits or fresh vegetables and
21information regarding the origin of where the donated fruits or
22vegetables were grown, and upon receipt of the donated fresh fruits
23or fresh vegetables, the nonprofit organization shall provide a
24
certificate to the donor. The certificate shall contain a statement
25signed and dated by a person authorized by that organization that
26the product is donated under Chapter 5 (commencing with Section
2758501) of Part 1 of Division 21 of the Food and Agricultural Code.
28The certificate shall also contain the type and quantity of product
29donated, the name of donor or donors, the name and address of
30the donee nonprofit organization, and, as provided by the donor,
31the estimated value of the donated fresh fruits or fresh vegetables
32and its origins. Upon the request of the Franchise Tax Board, the
33qualified taxpayer shall provide a copy of the certification to the
34Franchise Tax Board.
35(e) In the case where the credit allowed by this section exceeds
36the “net tax,” the excess may be carried over to reduce the “net
37tax” in the following year, and for the six succeeding years if
38necessary, until the credit has been exhausted.
39(f) Using the information available to the Franchise Tax Board
40from the certificates required under subdivision (d) and subdivision
P3 1(d) of Section 23688, the Franchise Tax Board shall report to the
2Legislature on or before December 1, 2014, and each December
31 thereafter until the inoperative date specified in subdivision (g),
4regarding the utilization of the credit authorized by this section
5and Section 23688.The Franchise Tax Board shall also include in
6the report the estimated value of the fresh fruits and fresh
7vegetables donated, the county in which the products originated,
8and the month the donation was made.
9(g) (1) A reportbegin insert requiredend insert to be submitted pursuant to subdivision
10(f) shall be submitted in compliance with Section 9795 of the
11Government
Code.
12(2) The requirement for submitting a report imposed under
13subdivision (f) is inoperative on January 1, 2016, pursuant to
14Section 10231.5 of the Government Code.
15(h) This section shall remain in effect only until December 1,
162017, and as of that date is repealed.
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