AB 515, as amended, Eggman. Income taxes: credits: food bank donations.
(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, defined as the person responsible for planting a crop, managing the crop, and harvesting the crop from the land, in an amount equal to 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, under both laws, would expand the credit to apply to the donation of qualified donation items, defined as raw agricultural products or processed foods. 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 equalbegin delete 20%end deletebegin insert 15%end insert 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, 2021. 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, upon appropriation by the Legislature, would 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: yes. 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 that donates
4to a food bank any qualified donation items that are accepted by
5that food bank located in California under Chapter 5 (commencing
6with Section 58501) of Part 1 of Division 21 of the Food and
7Agricultural Code, for taxable years beginning on or after January
81, 2012, and before January 1, 2021, there shall be allowed, without
9regard to the taxpayer’s method of accounting, as a credit against
P3 1the “net tax” (as defined by Section 17039), an amount equal to
2begin delete 20end deletebegin insert 15end insert percent of the qualified value of the qualified donation items,
3
but in no event shall this amount be less than the amount that would
4otherwise be available under this section as added by Chapter 503
5of the Statutes of 2011.
6(b) For purposes of this section, the following definitions shall
7apply:
8(1) “Qualified donation item” means fresh fruits or fresh
9vegetables and the following raw agricultural products or processed
10foods:
11(A) All of the following:
12(i) “Fruits, nuts, or vegetables” as defined in Section 42510 of
13the Food and Agricultural Code.
14(ii) “Meat food product” as defined in Section 18665 of the
15Food and Agricultural Code.
16(iii) “Poultry” as defined in Section 18675 of the Food and
17Agricultural Code.
18(iv) “Eggs” as defined in Section 75027 of the Food and
19Agricultural Code.
20(v) “Fish” as defined in Section 58609 of the Food and
21Agricultural Code.
22(B) All of the following food as defined in Section 109935 of
23the Health and Safety Code:
24(i) Rice.
25(ii) Beans.
26(iii) Fruit, nuts, and vegetables in canned, frozen, dried,
27dehydrated, and 100 percent juice forms.
28(iv) Any cheese, milk, yogurt, butter, and dehydrated milk
29meeting the requirements in Division 15 (commencing with Section
3032501) of the Food and Agricultural Code.
31(v) Infant formula subject to Section 114094.5 of the Health
32and Safety Code.
33(vi) Vegetable oil and olive oil.
34(vii) Soup, pasta sauce, and salsa.
35(viii) Bread and pasta.
36(ix) Canned meats and canned seafood.
37(2) “Qualified taxpayer” means the person responsible for
38planting a crop, managing the crop,
harvesting the crop from land,
39growing or raising a qualified donation item, or harvesting,
40packing, or processing a qualified donation item.
P4 1(3) “Qualified value” means either of the following:
2(A) The qualified value shall be calculated by using the weighted
3average wholesale sale price based on the qualified taxpayer’s
4total wholesale sales of the donated item sold within the calendar
5month of the qualified taxpayer’s donation.
6(B) If no wholesale sales of the donated item have occurred in
7the calendar month of the qualified taxpayer’s donation, the
8qualified value shall be equal to the nearest regional wholesale
9market price for the calendar month of the donation based upon
10the same grade products as published by the
United States
11Department of Agriculture’s Agricultural Marketing Service, or
12its successor.
13(c) If the credit allowed by this section is claimed by the
14qualified taxpayer, any deduction otherwise allowed under this
15part for that amount of the cost paid or incurred by the qualified
16taxpayer that is eligible for the credit shall be reduced by the
17amount of the credit provided in subdivision (a).
18(d) The donor shall provide to the food bank the qualified value
19of the donation items and information regarding the origin of where
20the donation items were grown, processed, or both grown and
21processed. Upon receipt and acceptance of the donation items, the
22food bank shall provide a certificate to the donor. The certificate
23shall contain a statement signed and dated by a person authorized
24
by the food bank that the donation items are accepted under
25Chapter 5 (commencing with Section 58501) of Part 1 of Division
2621 of the Food and Agricultural Code. The certificate shall also
27contain the type, grade, and quantity of items donated, the name
28of the donor or donors, the name and address of the food bank,
29and, as provided by the donor, the origin of the donated items, and
30the qualified value of the donated items, as described in subdivision
31(a). Upon the request of the Franchise Tax Board, the qualified
32taxpayer shall provide a copy of the certification to the Franchise
33Tax Board.
34(e) In the case where the credit allowed by this section exceeds
35the “net tax,” the excess may be carried over to reduce the “net
36tax” in the following year, and for the six succeeding years if
37necessary, until the credit has been exhausted.
38(f) Using the information available to the Franchise Tax Board
39from the certificates required under subdivision (d) and subdivision
40(d) of Section 23688, the Franchise Tax Board shall report to the
P5 1Legislature on or before December 1, 2014, and each December
21 thereafter until the inoperative date specified in paragraph (2)
3of subdivision (g), regarding the utilization of the credit authorized
4by this section and Section 23688. The Franchise Tax Board shall
5also include in the report the estimated value of the qualified
6donation items, the origin of the qualified donation items, and the
7month the donation was made.
8(g) (1) A report required to be submitted pursuant to subdivision
9(f) shall be submitted in compliance with Section 9795 of the
10Government Code.
11(2) The requirement for submitting a report imposed under
12subdivision (f) is inoperative on January 1, 2020, pursuant to
13Section 10231.5 of the Government Code.
14(h) This section shall be repealed on December 1, 2021.
Section 23688 of the Revenue and Taxation Code is
16amended to read:
(a) In the case of a qualified taxpayer that donates to
18a food bank any qualified donation items that are accepted by that
19food bank located in California under Chapter 5 (commencing
20with Section 58501) of Part 1 of Division 21 of the Food and
21Agricultural Code, for taxable years beginning on or after January
221, 2012, and before January 1, 2021, there shall be allowed, without
23regard to the taxpayer’s method of accounting, as a credit against
24the “tax” (as defined by Section 23036), an amount equal tobegin delete 20end deletebegin insert 15end insert
25 percent of the qualified value of the qualified donation items, but
26
in no event shall this amount be less than the amount that would
27otherwise be available under this section as added by Chapter 503
28of the Statutes of 2011.
29(b) For purposes of this section, the following definitions shall
30apply:
31(1) “Qualified donation item” means fresh fruits or fresh
32vegetables and the following raw agricultural products or processed
33foods:
34(A) All of the following:
35(i) “Fruits, nuts, or vegetables” as defined in Section 42510 of
36the Food and Agricultural Code.
37(ii) “Meat food product” as defined in Section 18665 of the
38Food and Agricultural Code.
39(iii) “Poultry” as defined in Section 18675 of the Food and
40Agricultural Code.
P6 1(iv) “Eggs” as defined in Section 75027 of the Food and
2Agricultural Code.
3(v) “Fish” as defined in Section 58609 of the Food and
4Agricultural Code.
5(B) All of the following food as defined in Section 109935 of
6the Health and Safety Code:
7(i) Rice.
8(ii) Beans.
9(iii) Fruit, nuts, and vegetables in canned, frozen, dried,
10dehydrated, and 100 percent juice forms.
11(iv) Any cheese, milk, yogurt, butter, and dehydrated milk
12meeting the requirements in Division 15 (commencing with Section
1332501) of the Food and Agricultural Code.
14(v) Infant formula subject to Section 114094.5 of the Health
15and Safety Code.
16(vi) Vegetable oil and olive oil.
17(vii) Soup, pasta sauce, and salsa.
18(viii) Bread and pasta.
19(ix) Canned meats and canned seafood.
20(2) “Qualified taxpayer” means the person responsible for
21planting a crop, managing the crop,
harvesting the crop from land,
22growing or raising a qualified donation item, or harvesting,
23packing, or processing a qualified donation item.
24(3) “Qualified value” means either of the following:
25(A) The qualified value shall be calculated by using the weighted
26average wholesale sale price based on the qualified taxpayer’s
27total wholesale sales of the donated item sold within the calendar
28
month of the qualified taxpayer’s donation.
29(B) If no wholesale sales of the donated item have occurred in
30the calendar month of the qualified taxpayer’s donation, the
31qualified value shall be equal to the nearest regional wholesale
32market price for the calendar month of the donation based upon
33the same grade products as published by the United States
34Department of Agriculture’s Agricultural Marketing Service, or
35its successor.
36(c) If the credit allowed by this section is claimed by the
37qualified taxpayer, any deduction otherwise allowed under this
38part for that amount of the cost paid or incurred by the qualified
39taxpayer that is eligible for the credit shall be reduced by the
40amount of the credit provided in subdivision (a).
P7 1(d) The donor shall provide to the food bank the qualified value
2of the donation items and information regarding the origin of where
3the donation items were grown, processed, or both grown and
4processed. Upon receipt and acceptance of the donation items, the
5food bank shall provide a certificate to the donor. The certificate
6shall contain a statement signed and dated by a person authorized
7by the food bank that the donation items are accepted under
8Chapter 5 (commencing with Section 58501) of Part 1 of Division
921 of the Food and Agricultural Code. The certificate shall also
10contain the type, grade, and quantity of items donated, the name
11of the donor or donors, the name and address of the food bank,
12and, as provided by the donor, the origin of the donated items, and
13the qualified value of the donated items, as described in subdivision
14(a).
Upon the request of the Franchise Tax Board, the qualified
15taxpayer shall provide a copy of the certification to the Franchise
16Tax Board.
17(e) In the case where the credit allowed by this section exceeds
18the “tax,” the excess may be carried over to reduce the “tax” in
19the following year, and for the six succeeding years if necessary,
20until the credit has been exhausted.
21(f) This section shall be repealed on December 1, 2021.
The heading of Chapter 14.5 (commencing with
23Section 18995) of Part 6 of Division 9 of the Welfare and
24Institutions Code is amended to read:
25
Section 18995 of the Welfare and Institutions Code is
29amended to read:
(a) On and after January 1, 2016, the State Emergency
31Food Assistance Program (SEFAP), administered by the State
32Department of Social Services, shall be renamed as the “CalFood
33Program.” The CalFood Program shall provide food and funding
34for the provision of emergency food to food banks established
35pursuant to the federal Emergency Food Assistance Program (7
36C.F.R. Parts 250 and 251) whose ongoing primary function is to
37facilitate the distribution of food to low-income households.
38(b) The CalFood Account is hereby established in the
39Emergency Food Assistance Program Fund established pursuant
P8 1to Section 18852 of the Revenue and Taxation Code, and may
2receive federal funds and
voluntary donations or contributions.
3(c) Notwithstanding Section 18853 of the Revenue and Taxation
4Code, the following shall apply:
5(1) All moneys received by the CalFood Account shall, upon
6appropriation by the Legislature, be allocated to the State
7Department of Social Services for allocation to the CalFood
8Program and, with the exception of those contributions made
9pursuant to Section 18851 of the Revenue and Taxation Code and
10funds received through Parts 250 and 251 of Title 7 of the Code
11of Federal Regulations, shall be used for the purchase, storage,
12and transportation of food grown or produced in California. Storage
13and transportation expenditures shall not exceed 10 percent of the
14CalFood Program fund’s annual budget.
15(2) Notwithstanding paragraph (1), funds received by the
16CalFood Account shall, upon appropriation by the Legislature, be
17allocated to the State Department of Social Services for allocation
18to the CalFood Program as described in paragraph (1), and shall,
19in part, be used to pay for the department’s administrative costs
20associated with the administration of the CalFood Program.
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