S T A T E   O F   N E W   Y O R K
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                                 5583--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            February 27, 2015
                               ___________

Introduced  by M. of A. ORTIZ, LUPARDO, COLTON -- read once and referred
  to the Committee on Ways and Means -- recommitted to the Committee  on
  Ways and Means in accordance with Assembly Rule 3, sec. 2 -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT to amend the tax law, in relation to establishing business fran-
  chise and personal income  tax  credits  for  businesses  that  donate
  prepared food

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 210-B of the tax law is amended  by  adding  a  new
subdivision 52 to read as follows:
  52. PREPARED FOOD DONATION CREDIT.  (A) A QUALIFYING TAXPAYER SHALL BE
ALLOWED  A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO TWEN-
TY-FIVE PERCENT OF THE TAXPAYER'S ELIGIBLE CHARITABLE FOOD DONATION.
  (B) FOR PURPOSES OF THIS SUBDIVISION, THE  FOLLOWING  TERMS  HAVE  THE
MEANINGS GIVEN:
  (1)  "ELIGIBLE  CHARITABLE  FOOD  DONATION"  MEANS  A  CONTRIBUTION OF
PREPARED FOOD ALLOWABLE AS A CHARITABLE DEDUCTION FOR THE  TAXABLE  YEAR
UNDER  SECTION 170(A) OF THE INTERNAL REVENUE CODE, SUBJECT TO THE LIMI-
TATIONS OF SECTION 170(B) OF THE INTERNAL REVENUE CODE,  AND  DETERMINED
WITHOUT REGARD TO WHETHER OR NOT THE TAXPAYER ITEMIZES DEDUCTIONS;
  (2)  "PREPARED  FOOD"  MEANS  FOOD THAT MEETS ALL QUALITY AND LABELING
STANDARDS IMPOSED BY FEDERAL, STATE, AND LOCAL LAWS AND REGULATIONS EVEN
THOUGH THE FOOD MAY NOT BE READILY MARKETABLE DUE  TO  APPEARANCE,  AGE,
FRESHNESS, GRADE, SIZE, SURPLUS, OR OTHER CONDITIONS, AND INCLUDES:
  (I) FOOD WHICH IS COOKED OR HEATED BY THE QUALIFYING TAXPAYER;
  (II)  TWO  OR  MORE INGREDIENTS MIXED TOGETHER TO BE EATEN AS A SINGLE
ITEM; OR
  (III) ANY INGREDIENTS SUPPLIED FOR INGESTION OR CHEWING BY HUMANS THAT
ARE CONSUMED FOR THEIR TASTE OR NUTRITIONAL VALUE;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02134-04-6
              

A. 5583--A                          2

  (3) "QUALIFYING TAXPAYER" MEANS ANY  RESTAURANT  MAKING  A  CHARITABLE
FOOD DONATION IN NEW YORK; AND
  (4) "RESTAURANT" MEANS ANY FACILITY:
  (I) WHICH IS OPERATED FOR PROFIT;
  (II) WHERE THE USUAL AND CUSTOMARY BUSINESS IS THE SERVING OF MEALS TO
CONSUMERS;
  (III) WHICH HAS A KITCHEN WITHIN THE FACILITY; AND
  (IV)  WHICH RECEIVES AT LEAST FIFTY PERCENT OF ITS GROSS RECEIPTS FROM
THE SALE OF PREPARED FOOD.
  (C) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
FOR  ANY  TAXABLE  YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE AMOUNT PRESCRIBED  IN  PARAGRAPH  (D)  OF  SUBDIVISION  ONE  OF
SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CRED-
IT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX
TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE  FIXED
DOLLAR  MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED  OR
REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, NO INTEREST WILL BE  PAID
THEREON.
  S  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new  clause  (xliii)  to  read  as
follows:
(XLIII) PREPARED FOOD DONATION       AMOUNT OF CREDIT UNDER
CREDIT UNDER                         SUBDIVISION FIFTY-TWO
SUBSECTION (FFF)                     OF SECTION TWO HUNDRED TEN-B
  S  3. Section 606 of the tax law is amended by adding a new subsection
(fff) to read as follows:
  (FFF) PREPARED FOOD DONATION CREDIT.  (1)  A  QUALIFYING  TAXPAYER  IS
ALLOWED  A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO TWEN-
TY-FIVE PERCENT OF THE TAXPAYER'S ELIGIBLE CHARITABLE FOOD DONATION. THE
CREDIT MAY NOT EXCEED THE TAXPAYER'S LIABILITY FOR TAX AND  MAY  NOT  BE
CARRIED FORWARD TO ANY OTHER TAXABLE YEAR.
  (2)  FOR  PURPOSES  OF  THIS SUBDIVISION, THE FOLLOWING TERMS HAVE THE
MEANINGS GIVEN:
  (A) "ELIGIBLE  CHARITABLE  FOOD  DONATION"  MEANS  A  CONTRIBUTION  OF
PREPARED  FOOD  ALLOWABLE AS A CHARITABLE DEDUCTION FOR THE TAXABLE YEAR
UNDER SECTION 170(A) OF THE INTERNAL REVENUE CODE, SUBJECT TO THE  LIMI-
TATIONS  OF  SECTION 170(B) OF THE INTERNAL REVENUE CODE, AND DETERMINED
WITHOUT REGARD TO WHETHER OR NOT THE TAXPAYER ITEMIZES DEDUCTIONS;
  (B) "PREPARED FOOD" MEANS FOOD THAT MEETS  ALL  QUALITY  AND  LABELING
STANDARDS IMPOSED BY FEDERAL, STATE, AND LOCAL LAWS AND REGULATIONS EVEN
THOUGH  THE  FOOD  MAY NOT BE READILY MARKETABLE DUE TO APPEARANCE, AGE,
FRESHNESS, GRADE, SIZE, SURPLUS, OR OTHER CONDITIONS, AND INCLUDES:
  (I) FOOD WHICH IS COOKED OR HEATED BY THE QUALIFYING TAXPAYER;
  (II) TWO OR MORE INGREDIENTS MIXED TOGETHER TO BE EATEN  AS  A  SINGLE
ITEM; OR
  (III) ANY INGREDIENTS SUPPLIED FOR INGESTION OR CHEWING BY HUMANS THAT
ARE CONSUMED FOR THEIR TASTE OR NUTRITIONAL VALUE;
  (C)  "QUALIFYING  TAXPAYER"  MEANS  ANY RESTAURANT MAKING A CHARITABLE
FOOD DONATION IN NEW YORK; AND
  (D) "RESTAURANT" MEANS ANY FACILITY:
  (I) WHICH IS OPERATED FOR PROFIT;
  (II) WHERE THE USUAL AND CUSTOMARY BUSINESS IS THE SERVING OF MEALS TO
CONSUMERS;
  (III) WHICH HAS A KITCHEN WITHIN THE FACILITY; AND

A. 5583--A                          3

  (IV) WHICH RECEIVES AT LEAST FIFTY PERCENT OF ITS GROSS RECEIPTS  FROM
THE SALE OF PREPARED FOOD.
  (3)  CREDITS  ALLOWED  TO  A  PARTNERSHIP, A LIMITED LIABILITY COMPANY
TAXED AS A PARTNERSHIP, AN S CORPORATION, OR MULTIPLE OWNERS OF PROPERTY
ARE PASSED THROUGH TO THE PARTNERS, MEMBERS,  SHAREHOLDERS,  OR  OWNERS,
RESPECTIVELY,  PRO  RATA  TO EACH PARTNER, MEMBER, SHAREHOLDER, OR OWNER
BASED ON THEIR SHARE OF THE ENTITY'S INCOME FOR THE TAXABLE YEAR.
  (4) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
SUCH  YEAR,  THE  EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX
HUNDRED  EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
SHALL BE PAID THEREON.
  S 4. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2017.