Establishes a tax credit for food service establishment donations to food pantries, in the amount of fifty percent of the marketed value of each of the taxpayer's qualified donations up to six dollars per qualified donation, beginning with the 2027 tax year.
Summary
This bill creates a new business tax credit for food service establishments that donate prepared meals to eligible community-based organizations, such as food pantries and other 501(c)(3) programs that accept or distribute prepared meals in New York. The credit would apply to taxable years beginning on or after January 1, 2027, and would equal 50 percent of the marketed value of qualified donations, capped at $7 per donation and $10,000 per taxpayer per year. To qualify, the donated meal must meet federal dietary guideline standards and must be given without receiving money, property, or services in return.
The bill also sets documentation rules for claiming the credit, requiring a receipt or written acknowledgment from the recipient organization that identifies the organization, the date and location of the donation, and a reasonably detailed description of the donation. The credit cannot reduce tax below the minimum tax otherwise due, but unused amounts may be treated as an overpayment and refunded or credited, without interest. In addition, the bill authorizes New York City, through its local legislative body, to adopt a similar credit for the city personal income tax.
Impact
The bill would amend section 210-B of the Tax Law by adding a new corporate franchise tax credit for qualifying food service establishments, and it would also authorize cities with populations of one million or more, effectively New York City, to enact a comparable personal income tax credit. Its practical effect would be to reduce tax liability for restaurants and other prepared-food businesses that donate meals to nonprofit hunger-relief organizations, while creating new recordkeeping and eligibility requirements for both donors and recipient organizations. The measure would also indirectly support food pantries and community meal programs by incentivizing meal donations.
Sentiment
The available context shows no recorded committee debate or votes, so there is no documented opposition or support from transcripts. Based on the bill text and caption, the measure appears to be framed as a pro-charity, anti-hunger tax incentive, suggesting generally favorable policy intent toward food donation and food insecurity relief. The absence of recorded votes or discussion means sentiment cannot be assessed beyond the bill’s apparent charitable purpose.
Contention
No specific points of contention are documented in the provided materials. Potential issues inherent in the bill include the administrative burden of proving the marketed value of donated meals, the need for receipts and acknowledgments from recipient organizations, and the scope of eligibility for what counts as a food service establishment or qualified donation. Another possible area of concern is the fiscal cost of the credit to state and local revenues, though no formal opposition is shown in the record provided.
Same As
Establishes a tax credit for food service establishment donations to food pantries, in the amount of fifty percent of the marketed value of each of the taxpayer's qualified donations up to six dollars per qualified donation, beginning with the 2027 tax year.