Increases tax credits for donations to food pantries made by farmers by increasing the allowable percentage of the fair market value of such donations and increasing the maximum amount of such credit.
Summary
This bill would amend New York’s tax law to increase the state income tax credit available to eligible farmers who donate food to eligible food pantries. Under current law, the credit equals 25% of the fair market value of qualified donations, up to $5,000 per taxable year. The bill would raise that credit to 50% of fair market value and increase the annual cap to $10,000. It would make the same change in both the corporate and personal income tax provisions, including rules for partnerships and S corporations.
The bill applies to taxable years beginning on and after January 1, 2028, and would take effect immediately. In practical terms, it would provide a larger tax incentive for farmers to donate agricultural products to food pantries, potentially increasing the amount of food available for hunger relief efforts while reducing the after-tax cost of those donations for participating farmers.
Impact
The bill would amend sections of the Tax Law governing the farmer food pantry donation credit under both the corporate franchise tax and personal income tax. It increases the credit rate from 25% to 50% of the fair market value of qualifying donations and doubles the annual cap from $5,000 to $10,000, with entity-level caps preserved for partnerships and New York S corporations. The change would affect eligible farmers, food pantries, and the state’s tax revenue by expanding the value of a targeted charitable tax expenditure.
Sentiment
No committee transcript or vote record is provided, so there is no direct evidence of debate or recorded support/opposition. Based on the bill’s purpose and structure, the measure appears to be framed positively as a food security and agricultural support incentive, with an emphasis on encouraging donations to food pantries. The available context suggests a straightforward policy proposal rather than a controversial one.
Contention
No specific points of contention are documented in the provided materials. Potential areas of policy debate, if raised, would likely involve the cost to state revenues, whether the increased credit is necessary to change farmer behavior, and whether the benefit is appropriately targeted to eligible farmers and food pantries. However, the record supplied does not identify any named supporters, opponents, or amendments.
Increases tax credits for donations to food pantries made by farmers by increasing the allowable percentage of the fair market value of such donations and increasing the maximum amount of such credit.
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.
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.
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