BILL NUMBER: AB 515	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Eggman

                        FEBRUARY 23, 2015

   An act to amend Section 17053.88 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   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 1.  Section 17053.88 of the Revenue and Taxation Code is
amended to read:
   17053.88.  (a) In the case of a qualified taxpayer who donates
fresh fruits or fresh vegetables to a food bank located in California
under Chapter 5 (commencing with Section 58501) of Part 1 of
Division 21 of the Food and Agricultural Code, for taxable years
beginning on or after January 1, 2012, and before January 1, 2017,
there shall be allowed, without regard to the taxpayer's method of
accounting, as a credit against the "net tax" (as defined by Section
17039), an amount equal to 10 percent of the cost that would
otherwise be included in inventory costs under Section 263A of the
Internal Revenue Code, or that would be required to be included in
inventory costs under Section 263A of the Internal Revenue Code, but
for the exception for farming businesses contained in Section 263A(d)
of the Internal Revenue Code, with respect to those fresh fruits or
fresh vegetables.
   (b) For purposes of this section, "qualified taxpayer" means the
person responsible for planting a crop, managing the crop, and
harvesting the crop from land.
   (c) If the credit allowed by this section is claimed by the
qualified taxpayer, any deduction otherwise allowed under this part
for that amount of the cost paid or incurred by the qualified
taxpayer that is eligible for the credit shall be reduced by the
amount of the credit provided in subdivision (a).
   (d) The donor shall provide to the nonprofit organization the
estimated value of the donated fresh fruits or fresh vegetables and
information regarding the origin of where the donated fruits or
vegetables were grown, and upon receipt of the donated fresh fruits
or fresh vegetables, the nonprofit organization shall provide a
certificate to the donor. The certificate shall contain a statement
signed and dated by a person authorized by that organization that the
product is donated under Chapter 5 (commencing with Section 58501)
of Part 1 of Division 21 of the Food and Agricultural Code. The
certificate shall also contain the type and quantity of product
donated, the name of donor or donors, the name and address of the
donee nonprofit organization, and, as provided by the donor, the
estimated value of the donated fresh fruits or fresh vegetables and
its origins. Upon the request of the Franchise Tax Board, the
qualified taxpayer shall provide a copy of the certification to the
Franchise Tax Board.
   (e) In the case where the credit allowed by this section exceeds
the "net tax," the excess may be carried over to reduce the "net tax"
in the following year, and for the six succeeding years if
necessary, until the credit has been exhausted.
   (f) Using the information available to the Franchise Tax Board
from the certificates required under subdivision (d) and subdivision
(d) of Section 23688, the Franchise Tax Board shall report to the
Legislature on or before December 1, 2014, and each December 1
thereafter until the inoperative date specified in subdivision (g),
regarding the utilization of the credit authorized by this section
and Section 23688.The Franchise Tax Board shall also include in the
report the estimated value of the fresh fruits and fresh vegetables
donated, the county in which the products originated, and the month
the donation was made.
   (g) (1) A report  required  to be submitted pursuant to
subdivision (f) shall be submitted in compliance with Section 9795 of
the Government Code.
   (2) The requirement for submitting a report imposed under
subdivision (f) is inoperative on January 1, 2016, pursuant to
Section 10231.5 of the Government Code.
   (h) This section shall remain in effect only until December 1,
2017, and as of that date is repealed.