HOUSE DOCKET, NO. 3122        FILED ON: 1/20/2017

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 3348

 

The Commonwealth of Massachusetts

_________________

PRESENTED BY:

Paul A. Schmid, III

_________________

To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act to provide a tax deduction for charitable donations of food by farmers.

_______________

PETITION OF:

 

Name:

District/Address:

Date Added:

Paul A. Schmid, III

8th Bristol

1/20/2017

Donald R. Berthiaume, Jr.

5th Worcester

2/3/2017

Michael D. Brady

Second Plymouth and Bristol

2/3/2017

Kate D. Campanale

17th Worcester

2/3/2017

James M. Cantwell

4th Plymouth

1/31/2017

Josh S. Cutler

6th Plymouth

1/30/2017

David F. DeCoste

5th Plymouth

1/24/2017

Daniel M. Donahue

16th Worcester

2/2/2017

Shawn Dooley

9th Norfolk

1/25/2017

Kimberly N. Ferguson

1st Worcester

2/1/2017

Dylan Fernandes

Barnstable, Dukes and Nantucket

1/26/2017

Ann-Margaret Ferrante

5th Essex

1/25/2017

Carole A. Fiola

6th Bristol

1/23/2017

Carmine L. Gentile

13th Middlesex

1/23/2017

Susan Williams Gifford

2nd Plymouth

1/24/2017

Anne M. Gobi

Worcester, Hampden, Hampshire and Middlesex

2/1/2017

Thomas A. Golden, Jr.

16th Middlesex

1/31/2017

Solomon Goldstein-Rose

3rd Hampshire

1/27/2017

Steven S. Howitt

4th Bristol

1/24/2017

Hannah Kane

11th Worcester

1/29/2017

Mary S. Keefe

15th Worcester

2/2/2017

John J. Lawn, Jr.

10th Middlesex

1/27/2017

David Paul Linsky

5th Middlesex

1/30/2017

Keiko M. Orrall

12th Bristol

2/2/2017

Marc R. Pacheco

First Plymouth and Bristol

2/1/2017

Sarah K. Peake

4th Barnstable

1/24/2017

David M. Rogers

24th Middlesex

2/3/2017

John W. Scibak

2nd Hampshire

1/24/2017

Alan Silvia

7th Bristol

1/23/2017

Frank I. Smizik

15th Norfolk

1/25/2017

Bruce E. Tarr

First Essex and Middlesex

2/3/2017

Aaron Vega

5th Hampden

2/3/2017

Chris Walsh

6th Middlesex

1/27/2017

Jonathan D. Zlotnik

2nd Worcester

2/2/2017


HOUSE DOCKET, NO. 3122        FILED ON: 1/20/2017

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 3348

By Mr. Schmid of Westport, a petition (accompanied by bill, House, No. 3348) of Paul A. Schmid, III and others for legislation to provide a tax deduction for charitable donations of food by farmers.  Revenue.

 

The Commonwealth of Massachusetts

 

_______________

In the One Hundred and Ninetieth General Court
(2017-2018)

_______________

 

An Act to provide a tax deduction for charitable donations of food by farmers.

 

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1. Section 3 of Chapter 62 of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by inserting after subparagraph (13), the following subparagraph:

(13A) In the case where the taxpayer is engaged in the trade or business of farming in the commonwealth, as defined in section 1A of chapter 128, and makes a charitable contribution of food from such farm trade or business, a charitable contribution deduction shall be allowed to the taxpayer under subparagraph (13); notwithstanding, the deductibility limitation based on the prior year’s tax rate on Part B taxable income under said subparagraph. Subject to the provisions of this subparagraph, the requirements, conditions and limitations, for charitable deductions for contributions of food inventory under section 170(e) of the Code, as amended, shall apply to determine the amount of the allowed deduction.

For the limited purpose of determining the amount of the allowable deduction for any charitable contribution of food, the taxpayer may elect an alternate cost basis for such contributed food, equal to 25 per cent of the food’s fair market value, regardless of whether the taxpayer is required to account for inventories or capitalize indirect costs under the Code.

A food contribution shall not qualify for an allowable deduction under this subparagraph, unless in addition to such other requirements: (i) the contributed food complies with the applicable quality and labelling standards of “apparently wholesome food” as defined under 42 U.S.C. 1791(b)(2), of the Bill Emerson Good Samaritan Food Donation Act, in effect when this subparagraph was enacted; and, (ii) the donee that accepts the contributed food from the taxpayer, is a charitable organization located in the commonwealth that is exempt from federal taxes under section 501(3)(c) of the Code, other than a private foundation, and that regularly receives and distributes contributed food of any type, for the care of individuals who are ill, needy, or infants in Massachusetts.

SECTION 2. Chapter 63 of the General Laws is hereby amended by inserting after section 38FF, the following section:

Section 38GG.    In determining the net income subject to tax under this chapter a corporation for profit engaged in the trade or business of farming in the commonwealth, as defined in section 1A of chapter 128, shall be allowed a deduction for charitable contributions of food by the corporation to a charitable organization. The term “charitable organization” for the purposes of this section, shall mean an organization exempt from federal taxes under section 501(3)(c) of the Code, excluding private foundations, that is located in the commonwealth and regularly receives and distributes contributed food in any form, for the care of individuals who are ill, needy, or infants in Massachusetts.

Subject to the provisions of this section, the requirements, conditions and limitations, applicable to charitable deductions for contributions of food inventory under section 170  of the Code, shall apply to determine the amount of the allowed deduction.

For the limited purpose of determining the amount of the allowable deduction for any charitable contribution of food, the corporation may elect an alternate cost basis for such contributed food, equal to 25 per cent of the food’s fair market value, regardless of whether the corporation is required to account for inventories or capitalize indirect costs under the Code.

A food contribution shall not qualify for an allowable deduction under this section, unless, in addition to such other requirements, the contributed food complies with the applicable quality and labelling standards of “apparently wholesome food” as defined under 42 U.S.C. 1791(b)(2), of the Bill Emerson Good Samaritan Food Donation Act, in effect when this section was enacted.

The allowed deduction under this section shall be in addition to other deductions allowable for corporations for profit under this chapter.

SECTION 3.  Sections 1 and 2 shall be effective for tax years beginning on or after, January 1, 2018.