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 equal 15% 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,begin delete 2021.end deletebegin insert 2021, and would require it to be claimed on aend insertbegin insert timely filed original returnend insertbegin insert.end insert 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
P3 1that food bank located in California under Chapter 5 (commencing
2with Section 58501) of Part 1 of Division 21 of the Food and
3Agricultural Code, for taxable years beginning on or after January
41, 2012, and before January 1, 2021, there shall be allowed, without
5regard to the taxpayer’s method of accounting, as a credit against
6the “net tax” (as defined by Section 17039), an amount equal to
715 percent of the qualified value of the qualified donation items,
8
but in no event shall this amount be less than the amount that would
9otherwise be available under this section as added by Chapter 503
10of the Statutes of 2011.
11(b) For purposes of this section, the following definitions shall
12apply:
13(1) “Qualified donation item” means fresh fruits or fresh
14vegetables and the following raw agricultural products or processed
15foods:
16(A) All of the following:
17(i) “Fruits, nuts, or vegetables” as defined in Section 42510 of
18the Food and Agricultural Code.
19(ii) “Meat food product” as defined in Section 18665 of the
20Food and Agricultural Code.
21(iii) “Poultry” as defined in Section 18675 of the Food and
22Agricultural Code.
23(iv) “Eggs” as defined in Section 75027 of the Food and
24Agricultural Code.
25(v) “Fish” as defined in Section 58609 of the Food and
26Agricultural Code.
27(B) All of the following food as defined in Section 109935 of
28the Health and Safety Code:
29(i) Rice.
30(ii) Beans.
31(iii) Fruit, nuts, and vegetables in canned, frozen, dried,
32dehydrated, and 100 percent juice forms.
33(iv) Any cheese, milk, yogurt, butter, and dehydrated milk
34meeting the requirements in Division 15 (commencing with Section
3532501) of the Food and Agricultural Code.
36(v) Infant formula subject to Section 114094.5 of the Health
37and Safety Code.
38(vi) Vegetable oil and olive oil.
39(vii) Soup, pasta sauce, and salsa.
40(viii) Bread and pasta.
P4 1(ix) Canned meats and canned seafood.
2(2) “Qualified taxpayer” means the person responsible for
3planting a crop, managing the crop, harvesting
the crop from land,
4growing or raising a qualified donation item, or harvesting,
5packing, or processing a qualified donation item.
6(3) “Qualified value” means either of the following:
7(A) The qualified value shall be calculated by using the weighted
8average wholesale sale price based on the qualified taxpayer’s
9total wholesale sales of the donated item sold within the calendar
10month of the qualified taxpayer’s donation.
11(B) If no wholesale sales of the donated item have occurred in
12the calendar month of the qualified taxpayer’s donation, the
13qualified value shall be equal to the nearest regional wholesale
14market price for the calendar month of the donation based upon
15the same grade products as published by the United States
16Department
of Agriculture’s Agricultural Marketing Service, or
17its successor.
18(c) If the credit allowed by this section is claimed by the
19qualified taxpayer, any deduction otherwise allowed under this
20part for that amount of the cost paid or incurred by the qualified
21taxpayer that is eligible for the credit shall be reduced by the
22amount of the credit provided in subdivision (a).
23(d) The donor shall provide to the food bank the qualified value
24of the donation items and information regarding the origin of where
25the donation items were grown, processed, or both grown and
26processed. Upon receipt and acceptance of the donation items, the
27food bank shall provide a certificate to the donor. The certificate
28shall contain a statement signed and dated by a person authorized
29
by the food bank that the donation items are accepted under
30Chapter 5 (commencing with Section 58501) of Part 1 of Division
3121 of the Food and Agricultural Code. The certificate shall also
32contain the type, grade, and quantity of items donated, the name
33of the donor or donors, the name and address of the food bank,
34and, as provided by the donor, the origin of the donated items, and
35the qualified value of the donated items, as described in subdivision
36(a). Upon the request of the Franchise Tax Board, the qualified
37taxpayer shall provide a copy of the certification to the Franchise
38Tax Board.
39(e) The credit allowed by this section may be claimed only on
40a timely filed original return.
P5 1(e)
end delete
2begin insert(f)end insert In the case where the credit allowed by this section exceeds
3the “net tax,” the excess may be carried over to reduce the “net
4tax” in the following year, and for the six succeeding years if
5necessary, until the credit has been exhausted.
6(f)
end delete
7begin insert(g)end insert Using the information available to the Franchise Tax Board
8from the certificates required under subdivision (d) and subdivision
9(d) of Section 23688, the Franchise Tax Board shall report to the
10Legislature
on or before December 1, 2014, and each December
111 thereafter until the inoperative date specified in paragraph (2)
12of subdivisionbegin delete (g),end deletebegin insert
(h),end insert regarding the utilization of the credit
13authorized by this section and Section 23688. The Franchise Tax
14Board shall also include in the report the estimated value of the
15qualified donation items, the origin of the qualified donation items,
16and the month the donation was made.
17(g)
end delete
18begin insert(h)end insert (1) A report required to be submitted pursuant to subdivision
19begin delete (f)end deletebegin insert (g)end insert shall be
submitted in compliance with Section 9795 of the
20Government Code.
21(2) The requirement for submitting a report imposed under
22subdivisionbegin delete (f)end deletebegin insert (g)end insert is inoperative on January 1, 2020, pursuant to
23Section 10231.5 of the Government Code.
24(h)
end delete25begin insert(i)end insert This section shall be repealed on December 1, 2021.
Section 23688 of the Revenue and Taxation Code is
27amended to read:
(a) In the case of a qualified taxpayer that donates to
29a food bank any qualified donation items that are accepted by that
30food bank located in California under Chapter 5 (commencing
31with Section 58501) of Part 1 of Division 21 of the Food and
32Agricultural Code, for taxable years beginning on or after January
331, 2012, and before January 1, 2021, there shall be allowed, without
34regard to the taxpayer’s method of accounting, as a credit against
35the “tax” (as defined by Section 23036), an amount equal to 15
36percent of the qualified value of the qualified donation items, but
37
in no event shall this amount be less than the amount that would
38otherwise be available under this section as added by Chapter 503
39of the Statutes of 2011.
P6 1(b) For purposes of this section, the following definitions shall
2apply:
3(1) “Qualified donation item” means fresh fruits or fresh
4vegetables and the following raw agricultural products or processed
5foods:
6(A) All of the following:
7(i) “Fruits, nuts, or vegetables” as defined in Section 42510 of
8the Food and Agricultural Code.
9(ii) “Meat food product” as defined in Section 18665 of the
10Food and Agricultural Code.
11(iii) “Poultry” as defined in Section 18675 of the Food and
12Agricultural Code.
13(iv) “Eggs” as defined in Section 75027 of the Food and
14Agricultural Code.
15(v) “Fish” as defined in Section 58609 of the Food and
16Agricultural Code.
17(B) All of the following food as defined in Section 109935 of
18the Health and Safety Code:
19(i) Rice.
20(ii) Beans.
21(iii) Fruit, nuts, and vegetables in canned, frozen, dried,
22dehydrated, and 100 percent juice forms.
23(iv) Any cheese, milk, yogurt, butter, and dehydrated milk
24meeting the requirements in Division 15 (commencing with Section
2532501) of the Food and Agricultural Code.
26(v) Infant formula subject to Section 114094.5 of the Health
27and Safety Code.
28(vi) Vegetable oil and olive oil.
29(vii) Soup, pasta sauce, and salsa.
30(viii) Bread and pasta.
31(ix) Canned meats and canned seafood.
32(2) “Qualified taxpayer” means the person responsible for
33planting a crop, managing the crop, harvesting
the crop from land,
34growing or raising a qualified donation item, or harvesting,
35packing, or processing a qualified donation item.
36(3) “Qualified value” means either of the following:
37(A) The qualified value shall be calculated by using the weighted
38average wholesale sale price based on the qualified taxpayer’s
39total wholesale sales of the donated item sold within the calendar
40
month of the qualified taxpayer’s donation.
P7 1(B) If no wholesale sales of the donated item have occurred in
2the calendar month of the qualified taxpayer’s donation, the
3qualified value shall be equal to the nearest regional wholesale
4market price for the calendar month of the donation based upon
5the same grade products as published by the United States
6Department of Agriculture’s Agricultural Marketing Service, or
7its successor.
8(c) If the credit allowed by this section is claimed by the
9qualified taxpayer, any deduction otherwise allowed under this
10part for that amount of the cost paid or incurred by the qualified
11taxpayer that is eligible for the credit shall be reduced by the
12amount of the credit provided in subdivision (a).
13(d) The donor shall provide to the food bank the qualified value
14of the donation items and information regarding the origin of where
15the donation items were grown, processed, or both grown and
16processed. Upon receipt and acceptance of the donation items, the
17food bank shall provide a certificate to the donor. The certificate
18shall contain a statement signed and dated by a person authorized
19by the food bank that the donation items are accepted under
20Chapter 5 (commencing with Section 58501) of Part 1 of Division
2121 of the Food and Agricultural Code. The certificate shall also
22contain the type, grade, and quantity of items donated, the name
23of the donor or donors, the name and address of the food bank,
24and, as provided by the donor, the origin of the donated items, and
25the qualified value of the donated items, as described in subdivision
26(a).
Upon the request of the Franchise Tax Board, the qualified
27taxpayer shall provide a copy of the certification to the Franchise
28Tax Board.
29(e) The credit allowed by this section may be claimed only on
30a timely filed original return.
31(e)
end delete
32begin insert(f)end insert In the case where the credit allowed by this section exceeds
33the “tax,” the excess may be carried over to reduce the “tax” in
34the following year, and for the six succeeding years if necessary,
35until the credit has
been exhausted.
36(f)
end delete37begin insert(g)end insert This section shall be repealed on December 1, 2021.
The heading of Chapter 14.5 (commencing with
39Section 18995) of Part 6 of Division 9 of the Welfare and
40Institutions Code is amended to read:
Section 18995 of the Welfare and Institutions Code is
4amended to read:
(a) On and after January 1, 2016, the State Emergency
6Food Assistance Program (SEFAP), administered by the State
7Department of Social Services, shall be renamed as the “CalFood
8Program.” The CalFood Program shall provide food and funding
9for the provision of emergency food to food banks established
10pursuant to the federal Emergency Food Assistance Program (7
11C.F.R. Parts 250 and 251) whose ongoing primary function is to
12facilitate the distribution of food to low-income households.
13(b) The CalFood Account is hereby established in the
14Emergency Food Assistance Program Fund established pursuant
15to Section 18852 of the Revenue and Taxation Code, and may
16receive federal funds and
voluntary donations or contributions.
17(c) Notwithstanding Section 18853 of the Revenue and Taxation
18Code, the following shall apply:
19(1) All moneys received by the CalFood Account shall, upon
20appropriation by the Legislature, be allocated to the State
21Department of Social Services for allocation to the CalFood
22Program and, with the exception of those contributions made
23pursuant to Section 18851 of the Revenue and Taxation Code and
24funds received through Parts 250 and 251 of Title 7 of the Code
25of Federal Regulations, shall be used for the purchase, storage,
26and transportation of food grown or produced in California. Storage
27and transportation expenditures shall not exceed 10 percent of the
28CalFood Program fund’s annual budget.
29(2) Notwithstanding paragraph (1), funds received by the
30CalFood Account shall, upon appropriation by the Legislature, be
31allocated to the State Department of Social Services for allocation
32to the CalFood Program as described in paragraph (1), and shall,
33in part, be used to pay for the department’s administrative costs
34associated with the administration of the CalFood Program.
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