BILL NUMBER:S4946                Revised 05/20/15

TITLE OF BILL:

An act to amend the tax law, in relation to creating a vending to food
pantries and soup kitchens tax credit

PURPOSE:

To allow a tax credit for farms that sell fruits and vegetables grown
in New York to food pantries and soup kitchens.

SUMMARY OF PROVISIONS:

Section 1. Section 210-B of the tax law is amended by adding a new
subdivision 28 to read as follows:

28. Vending to food pantry and soup kitchen tax credit. Part(a)
Taxpayers who operate farms in the state of New York and sell fruits
and vegetables grown in New York to food pantries and soup kitchens
may claim the vending to food pantry and soup kitchen

Part (b) defines the amount of the credit as fifty percent of the
revenue earned by the farmer from the sale of fruits and vegetables
grown in New York to food pantries and soup kitchens.

              

Part (c) declares receipts must be submitted with tax returns to
receive the tax credit.

Section 2. Adds a new subdivision to Section 606 of the tax law that
relates to the tax credit for the revenue from the sale of fruits and
vegetables to food pantries and soup kitchens to be computed as
provided in paragraph 3 of this subsection. Paragraph two declares the
amount of credit, as fifty percent of the revenue from sales to food
pantries and soup kitchens.

Section 3: relates to the new clause in Subparagraph (B) of paragraph
1 of subsection (i) of section 606 of the tax law which is amended to
reflect this new tax credit.

Section 4 sets forth the effective date.

JUSTIFICATION:

Many New Yorkers are facing significant hardships. Nearly a third of
the state is poor or near poverty and over half the children in
Rochester, Syracuse and Schenectady live in poverty. The poverty rate
for children in Buffalo is nearly 46%. As a result many of our fellow
New Yorkers have trouble accessing needed food. According to the USDA
food insecurity in new York is rising. According to the Hunger Action
Network:

*almost half of the households in New York State with children have
had difficulty affording food for themselves and their families;

*nearly 15% of children under the age of 18 are faced with food
insecurity;


*nearly 15% of children under the age of 18 are faced with food
insecurity; and

*nearly half of New York city's households with children can barely
afford needed food.

This is unacceptable, especially in a state where 25% of our land is
used in agriculture production.

Families who face food insecurity must turn to soup kitchens and food
pantries. Unfortunately, soup kitchens and food pantries are having
trouble keeping up with the demand for food and the food that they do
obtain tends to lack the nutritional content required to maintain good
health. The lower nutritional value in these foods results in negative
impacts to health. A New York City food bank report found that 20% of
the NYC residents receiving food from soup kitchens and food pantries,
have been diagnosed with diabetes and 10% with heart disease.

This bill will create an incentive for farms in New York to sell fresh
fruits and vegetables to food pantries and soup kitchens thereby
helping to feed our needy children while also providing more healthy
food for those in need. This will have positive health effects and
could result in lowered medical costs. The goal of this legislation is
to get fresh, nutritious, locally grown food to families and
individuals in need

LEGISLATIVE HISTORY:

This is a new bill.

FISCAL IMPLICATIONS:

If enacted, this measure would result in a reduction of State revenue
of approximately $100,000 in SFY 2016-17 and $500,000 annually
thereafter.

EFFECTIVE DATE:

This act shall take effect which will be immediately, provided,
however, that the credits established by sections one, two and three
of this act shall apply to taxable years beginning on or after January
1, 2016.