Amendment #561 to H4000

Tax Credit for Food Pantry And Food Bank Donations

Representatives Gobi of Spencer, Calter of Kingston, Schmid of Westport, Orrall of Lakeville, Gifford of Wareham, Keefe of Worcester, Farley-Bouvier of Pittsfield, DiNatale of Fitchburg, Benson of Lunenburg, McMurtry of Dedham, Walsh of Framingham, Beaton of Shrewsbury and Ashe of Longmeadow moves to amend the bill by adding the following sections:

“SECTION 38A. Section 6 of chapter 62 of the General Laws, as appearing in the 2012 Official Edition, is hereby amended by inserting after subsection (r), the following subsection:-

(s)(1)  A taxpayer who makes a qualified donation to a food bank or food pantry that is located in the commonwealth shall be allowed a credit against the tax liability imposed by this chapter. The credit that may be claimed  by a taxpayer shall be based on the value of any qualified donation made by a taxpayer; provided, that the total amount of the credit that may be  claimed by a taxpayer under this subsection shall not exceed $75 in any taxable year.

(2)  A taxpayer who is entitled to a credit under this subsection for any taxable year, the amount of which exceeds the individual’s tax liability for the then current taxable year, may carry over the excess amount, as reduced from year to year, and apply it to the individual’s tax liability for any one or more of the next succeeding 3 taxable years; provided however, that in no taxable year may the amount of the credit allowed exceed the total tax due of the taxpayer for the relevant taxable year.

(3)  Any deduction from gross income that may be taken with respect to a qualified donation to a food bank or food pantry shall be disallowed to the extent a credit under this subsection is entitled to be claimed by a taxpayer for the taxable year.

(4)  The commissioner shall adopt regulations necessary for the administration of this subsection.

(5)  As used in this subsection, the following words shall have the following meanings:-

“food bank”, a nonprofit corporation formed under chapter 180, for a civic, charitable, benevolent or religious purpose, and which on a continual basis provides emergency food provisions and grocery items, directly to community food pantries that are located in the

commonwealth, and has a tax-exempt status as a nonprofit charitable organization as described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended.

“food pantry or food pantries”, a nonprofit corporation formed under chapter 180, for a civic, charitable, benevolent or religious purpose, and other nonprofit organization, not a sole individual, that operates primarily for such similar purpose; and which on a continual basis provides emergency food provisions and grocery items, directly to those of economic hardship in the commonwealth, and has a tax-exempt status as a nonprofit charitable organization as described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended.

“qualified donation”, an unconditional gift made by a taxpayer to a food bank or food pantry that consists of any: (i) cash money, that also may be tendered by check, credit card or other financial method, and (ii) tangible items of food, groceries and related goods, which gift is accepted by a food bank or food pantry; and provided, that the value of any such non-monetary gift shall be determined by the fair market value of each item when so accepted. No such gift by a taxpayer shall be made in exchange for any service or tangible item from a food bank or food pantry, other than of non-substantial value, nor be increased in value as a result of any service.

“taxpayer”, an individual who has a primary residence in the commonwealth.

SECTION 38B. Section 38A shall take effect on January 1, 2015.”

Additional co-sponsor(s) added to Amendment #561 to H4000

Tax Credit for Food Pantry And Food Bank Donations