BILL NUMBER: AB 515 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 26, 2015
INTRODUCED BY Assembly Member Eggman
FEBRUARY 23, 2015
An act to amend Section Sections
17053.88 and 23688 of the Revenue and Taxation Code,
and to amend Section 18995 of, and to amend the heading of Chapter
14.5 (commencing with Section 18995) of Part 6 of Division 9 of, the
Welfare and Institutions Code, relating to taxation.
food banks.
LEGISLATIVE COUNSEL'S DIGEST
AB 515, as amended, Eggman. Personal income tax credit:
Income taxes: credits: food bank donations.
The
(1) The Personal Income Tax Law
and the Corporation Tax Law allow various credits against the taxes
imposed by those laws, including , for taxable years beginning
on or after January 1, 2012, and before January 1, 2017, a
credit for qualified taxpayers, as defined as
the person responsible for planting a crop, managing the crop, and
harvesting the crop from the land , in an amount equal to
a specified percentage 10% of the cost
that would otherwise be included in , or required to be included
in, inventory costs, as specified under federal law
, with respect to the donation of fresh fruits or fresh vegetables
to food banks located in California.
This bill would , under both laws, expand the credit to apply
to the donation of qualified donation items, defined as
raw or processed agricultural products. The bill would expand the
definition of qualified taxpayer to also include the person
responsible for growing or raising a qualified donation item, or
harvesting, packing, or processing a qualified donation item. The
bill would modify the credit amount to instead equal 20% of the
qualified value, as defined, of the qualified donation items. The
bill would extend the operation of the credit to taxable years before
January 1, 2024. The bill would make various conforming changes and
would also make a nonsubstantive change to the personal income
tax provision.
(2) Existing law requires the State Department of Social Services
to establish and administer the State Emergency Food Assistance
Program (SEFAP), to provide food and funding for the provision of
emergency food to food banks, as provided. Existing law creates the
State Emergency Food Assistance Program Account and would, upon
appropriation by the Legislature, allocate the moneys in the account
to SEFAP and require that those moneys be used for the purchase,
storage, and transportation of food grown or produced in California
and for the department's administrative costs.
This bill would rename the State Emergency Food Assistance Program
(SEFAP) as the CalFood Program and would rename the State Emergency
Food Assistance Program Account as the CalFood Account. The bill
would make other conforming changes in this regard.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . 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
that donates fresh fruits or fresh
vegetables to a food bank any qualified donation items
that are accepted by that 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,
2024, 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.
20 percent of the qualified value of the qualified donation
items, but in no event shall this amount be less than the amount that
would otherwise be available under this section as added by Chapter
503 of the Statutes of 2011.
(b) For purposes of this section, "qualified
the following definitions shall apply:
(1) "Qualified donation item" means fresh fruits or fresh
vegetables and the following raw or processed agricultural products:
(A) All of the following:
(i) "Fruits, nuts, or vegetables" as defined in Section 42510 of
the Food and Agricultural Code.
(ii) "Meat food product" as defined in Section 18665 of the Food
and Agricultural Code.
(iii) "Poultry" as defined in Section 18675 of the Food and
Agricultural Code.
(iv) "Eggs" as defined in Section 75027 of the Food and
Agricultural Code.
(v) "Fish" as defined in Section 58609 of the Food and
Agricultural Code.
(B) All of the following food as defined in Section 109935 of the
Health and Safety Code:
(i) Rice.
(ii) Beans.
(iii) Fruit, nuts, and vegetables in canned, frozen, dried,
dehydrated, and 100 percent juice forms.
(iv) Cheese, milk (cow or goat), yogurt, butter, dehydrated milk,
and infant formula from licensed sources.
(v) Vegetable oil and olive oil.
(vi) Shelf stable ready-to-eat products, limited to soup, pasta
sauce, ketchup, salsa, and salad dressings.
(vii) Bread, pasta, or cereal.
(viii) Canned meats and canned seafood.
(2) "Qualified taxpayer" means
the person responsible for planting a crop, managing the crop,
and harvesting the crop from land , growing
or raising a qualified donation item, or harvesting, packing, or
processing a qualified donation item .
(3) "Qualified value" means either of the following:
(A) The qualified value shall be calculated by using the weighted
average wholesale sale price based on the qualified taxpayer's total
wholesale sales of the donated item sold within the calendar month of
the qualified taxpayer's donation.
(B) If no wholesale sales of the donated item have occurred in the
calendar month of the qualified taxpayer's donation, the qualified
value shall be equal to the nearest regional wholesale market price
for the calendar month of the donation based upon the same grade
products as published by the United States Department of Agriculture'
s Agricultural Marketing Service, or its successor. This subparagraph
does not apply if the United States Department of Agriculture's
Agricultural Marketing Service or its successor requires payment for
use of their services.
(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
food bank the estimated
qualified value of the donated fresh fruits or fresh
vegetables donation items and information
regarding the origin of where the donated fruits or
vegetables were donation items were grown,
and upon processed, or both grown and
processed. Upon receipt and acceptance of the
donated fresh fruits or fresh vegetables, the nonprofit
organization donation items, the food bank 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 the food bank
that the donation items are accepted 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
, grade, and quantity of product
items donated, the name of the donor or donors, the
name and address of the donee nonprofit organization,
food bank, and, as provided by the donor,
the estimated value of the donated fresh fruits or fresh
vegetables and its origins. the origin of the donated
items, and the qualified value of the donated items, as described in
subdivision (a). 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 paragraph (2)
of subdivision (g), regarding the utilization of the credit
authorized by this section and Section 23688.The
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,
qualified donation items, the origin of the qualified
donation items, 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,
2023, pursuant to Section 10231.5 of the Government Code.
(h) This section shall remain in effect only until December 1,
2017, 2024, and as of that date is
repealed.
SEC. 2. Section 23688 of the Revenue
and Taxation Code is amended to read:
23688. (a) In the case of a qualified taxpayer who
that donates fresh fruits or fresh
vegetables to a food bank any qualified donation items
that are accepted by that 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,
2024, there shall be allowed, without regard to
the taxpayer's method of accounting, as a credit against the "tax"
(as defined by Section 23036), 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. 20
percent of the qualified value of the qualified donation items, but
in no event shall this amount be less than the amount that would
otherwise be available under this section as added by Chapter 503 of
the Statutes of 2011.
(b) For purposes of this section, "qualified taxpayer"
the following definitions shall apply:
(1) "Qualified donation item" means fresh fruits or fresh
vegetables and the following raw or processed agricultural products:
(A) All of the following:
(i) "Fruits, nuts, or vegetables" as defined in Section 42510 of
the Food and Agricultural Code.
(ii) "Meat food product" as defined in Section 18665 of the Food
and Agricultural Code.
(iii) "Poultry" as defined in Section 18675 of the Food and
Agricultural Code.
(iv) "Eggs" as defined in Section 75027 of the Food and
Agricultural Code.
(v) "Fish" as defined in Section 58609 of the Food and
Agricultural Code.
(B) All of the following food as defined in Section 109935 of the
Health and Safety Code:
(i) Rice.
(ii) Beans.
(iii) Fruit, nuts, and vegetables in canned, frozen, dried,
dehydrated, and 100 percent juice forms.
(iv) Cheese, milk (cow or goat), yogurt, butter, dehydrated milk,
and infant formula from licensed sources.
(v) Vegetable oil and olive oil.
(vi) Shelf stable ready-to-eat products, limited to soup, pasta
sauce, ketchup, salsa, and salad dressings.
(vii) Bread, pasta, or cereal.
(viii) Canned meats and canned seafood.
(2) "Qualified taxpayer" means
the person responsible for planting a crop, managing the crop,
and harvesting the crop from land.
land, growing or raising a qualified donation item, or
harvesting, packing, or processing a qualified donation item.
(3) "Qualified value" means either of the following:
(A) The qualified value shall be calculated by using the weighted
average wholesale sale price based on the qualified taxpayer's total
wholesale sales of the donated item sold within the calendar month of
the qualified taxpayer's donation.
(B) If no wholesale sales of the donated item have occurred in the
calendar month of the qualified taxpayer's donation, the qualified
value shall be equal to the nearest regional wholesale market price
for the calendar month of the donation based upon the same grade
products as published by the United States Department of Agriculture'
s Agricultural Marketing Service, or its successor. This subparagraph
does not apply if the United States Department of Agriculture's
Agricultural Marketing Service or its successor requires payment for
use of their services.
(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
food bank the estimated
qualified value of the donated fresh fruits or fresh
vegetables donation items and information
regarding the origin of where the donated fruits or
vegetables donation items were grown,
and upon processed, or both grown and processed. Upon
receipt and acceptance of the donated fresh
fruits or fresh vegetables, the nonprofit organization
donation items, the food bank 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 the food bank that the donation
items are accepted 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 , grade, and
quantity of product items donated, the
name of the donor or donors, the name and address of the
donee nonprofit organization, food bank,
and, as provided by the donor, the estimated value of
the donated fresh fruits or fresh vegetables and its origins.
the origin of the donated items, and the qualified
value of the donated items, as described in subdivision (a).
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 "tax," the excess may be carried over to reduce the "tax" in the
following year, and for the six succeeding years if necessary, until
the credit has been exhausted.
(f) This section shall remain in effect only until December 1,
2017, 2024, and as of that date is
repealed.
SEC. 3. The heading of Chapter 14.5 (commencing
with Section 18995) of Part 6 of Division 9 of the Welfare
and Institutions Code is amended to read:
CHAPTER 14.5. THE STATE EMERGENCY FOOD ASSISTANCE
CALFOOD PROGRAM
SEC. 4. Section 18995 of the Welfare
and Institutions Code is amended to read:
18995. (a) On and after January 1, 2012, the State
Department of Social Services shall establish and administer
2016, the State Emergency Food Assistance
Program (SEFAP). (SEFAP), administered by the
State Department of Social Services, shall be renamed as the
"CalFood Program." The SEFAP CalFood
Program shall provide food and funding for the provision of
emergency food to food banks established pursuant to the federal
Emergency Food Assistance Program (7 C.F.R. Parts 250 and 251) whose
ongoing primary function is to facilitate the distribution of food to
low-income households.
(b) The State Emergency Food Assistance Program
CalFood Account is hereby established in the Emergency
Food Assistance Program Fund established pursuant to Section 18852 of
the Revenue and Taxation Code, and may receive federal funds and
voluntary donations or contributions.
(c) Notwithstanding Section 18853 of the Revenue and Taxation
Code, the following shall apply:
(1) All moneys received by the State Emergency Food
Assistance Program CalFood Account shall, upon
appropriation by the Legislature, be allocated to the State
Department of Social Services for allocation to the SEFAP
CalFood Program and, with the exception of those
contributions made pursuant to Section 18851 of the Revenue and
Taxation Code and funds received through Parts 250 and 251 of Title 7
of the Code of Federal Regulations, shall be used for the purchase,
storage, and transportation of food grown or produced in California.
Storage and transportation expenditures shall not exceed 10 percent
of the SEFAP CalFood Program fund's
annual budget.
(2) Notwithstanding paragraph (1), funds received by the
State Emergency Food Assistance Program CalFood
Account shall, upon appropriation by the Legislature, be allocated to
the State Department of Social Services for allocation to the
SEFAP CalFood Program as described in
paragraph (1), and shall, in part, be used to pay for the department'
s administrative costs associated with the administration of the
SEFAP. CalFood Program.