S T A T E O F N E W Y O R K
________________________________________________________________________
9329
2025-2026 Regular Sessions
I N A S S E M B L Y
December 10, 2025
___________
Introduced by M. of A. SEPTIMO -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to enacting the "New York state
food rescue tax credit act"
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "New York state food rescue tax credit act".
§ 2. Legislative findings and intent. The legislature finds and
declares that:
1. New York generates over four million tons of food waste each year,
a significant portion of which is edible and suitable for donation.
2. Current tax law favors disposal over donation, as deductions for
waste disposal are often more financially advantageous than charitable
incentives for food donation.
3. Food insecurity affects more than 11 percent of New York house-
holds, a rate that has grown in recent years and is expected to rise
further due to federal reductions in SNAP benefits and potential
disruptions in federal nutrition programs.
4. It is therefore the intent of the legislature to establish a
refundable and transferable state tax credit to encourage businesses of
all sizes to donate surplus food and to offset the costs of storage,
transportation, and distribution.
5. This credit will strengthen New York's food assistance network,
reduce landfill waste and methane emissions, and ensure that nutritious
food reaches families in need instead of being discarded.
§ 3. Section 210-B of the tax law is amended by adding a new subdivi-
sion 63 to read as follows:
63. FOOD RESCUE TAX CREDIT. (A) DEFINITIONS. FOR THE PURPOSES OF THIS
SUBDIVISION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14136-02-5
A. 9329 2
(I) "ELIGIBLE NONPROFIT FOOD ASSISTANCE ORGANIZATION" MEANS A NONPRO-
FIT ENTITY RECOGNIZED UNDER SECTION 501(C)(3) OF THE UNITED STATES
INTERNAL REVENUE CODE, OR SIMILARLY RECOGNIZED ORGANIZATION, THAT
ENGAGES PRIMARILY IN FOOD RESCUE, RECOVERY, OR DISTRIBUTION TO INDIVID-
UALS OR FAMILIES IN NEED.
(II) "ELIGIBLE TAXPAYER" INCLUDES FOOD BUSINESSES, FARMERS, MANUFAC-
TURERS, DISTRIBUTORS, WHOLESALERS, RETAILERS, AND ANY OTHER BUSINESS
ENTITY ENGAGED IN THE SALE, MANUFACTURE, OR DISTRIBUTION OF FOOD WITHIN
NEW YORK STATE.
(III) "QUALIFIED FOOD DONATION" MEANS ANY WHOLESOME, EDIBLE FOOD FIT
FOR HUMAN CONSUMPTION, INCLUDING PERISHABLE AND PREPARED FOODS, DONATED
IN COMPLIANCE WITH APPLICABLE STATE AND FEDERAL FOOD SAFETY LAWS AS
CERTIFIED, MEASURED, AND ACCEPTED BY A NEW YORK STATE CHARITABLE ORGAN-
IZATION IN GOOD STANDING AS DEFINED BY ARTICLE SEVEN-A OF THE EXECUTIVE
LAW.
(B) ALLOWANCE OF CREDIT. AN ELIGIBLE TAXPAYER SUBJECT TO TAX UNDER
THIS ARTICLE SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX IN AN AMOUNT
EQUAL TO:
(I) SIXTY-FIVE PERCENT OF THE FAIR MARKET VALUE OF QUALIFIED FOOD
DONATIONS MADE DURING THE TAXABLE YEAR TO AN ELIGIBLE NONPROFIT FOOD
ASSISTANCE ORGANIZATION; AND
(II) ONE HUNDRED PERCENT OF DOCUMENTED TRANSPORTATION AND STORAGE
EXPENSES DIRECTLY ATTRIBUTABLE TO SUCH DONATIONS.
(C) REFUNDABILITY AND TRANSFERABILITY. IF THE AMOUNT OF CREDIT ALLOW-
ABLE UNDER THIS SUBDIVISION EXCEEDS THE ELIGIBLE TAXPAYER'S TAX LIABIL-
ITY FOR THE TAXABLE YEAR, THE EXCESS SHALL BE REFUNDABLE. ALTERNATIVELY,
AN ELIGIBLE TAXPAYER MAY TRANSFER OR ASSIGN THE UNUSED PORTION OF SUCH
CREDIT TO ANOTHER ELIGIBLE TAXPAYER, SUBJECT TO REGULATIONS PROMULGATED
BY THE COMMISSIONER.
(D) LIMITATIONS. (I) THE AGGREGATE AMOUNT OF CREDITS ALLOWED UNDER
THIS SUBDIVISION FOR ALL ELIGIBLE TAXPAYERS IN ANY FISCAL YEAR SHALL NOT
EXCEED SEVENTY-FIVE MILLION DOLLARS STATEWIDE, UNLESS INCREASED BY
APPROPRIATION.
(II) THE COMMISSIONER SHALL ADOPT RULES AND REGULATIONS GOVERNING
DOCUMENTATION, SUBSTANTIATION, TRANSFER AND APPLICATION PROCEDURES TO
ENSURE PROGRAM INTEGRITY.
(III) THE DEPARTMENT SHALL COORDINATE WITH THE DEPARTMENT OF AGRICUL-
TURE AND MARKETS TO VERIFY THE ELIGIBILITY OF NONPROFIT FOOD RECIPIENTS
AND ENSURE DONATED FOOD MEETS SAFETY AND QUALITY STANDARDS.
§ 4. Section 606 of the tax law is amended by adding a new subsection
(www) to read as follows:
(WWW) FOOD RESCUE TAX CREDIT. (1) DEFINITIONS. FOR THE PURPOSES OF
THIS SUBSECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
(A) "ELIGIBLE NONPROFIT FOOD ASSISTANCE ORGANIZATION" MEANS A NONPRO-
FIT ENTITY RECOGNIZED UNDER SECTION 501(C)(3) OF THE UNITED STATES
INTERNAL REVENUE CODE, OR SIMILARLY RECOGNIZED ORGANIZATION, IN GOOD
STANDING WITH THE STATE OF NEW YORK'S CHARITIES BUREAU, THAT ENGAGES
PRIMARILY IN FOOD RESCUE, RECOVERY, OR DISTRIBUTION TO INDIVIDUALS OR
FAMILIES IN NEED.
(B) "ELIGIBLE TAXPAYER" INCLUDES FOOD BUSINESSES, FARMERS, MANUFACTUR-
ERS, DISTRIBUTORS, WHOLESALERS, RETAILERS, AND ANY OTHER BUSINESS ENTITY
ENGAGED IN THE SALE, MANUFACTURE, OR DISTRIBUTION OF FOOD WITHIN NEW
YORK STATE.
(C) "QUALIFIED FOOD DONATION" MEANS ANY WHOLESOME, EDIBLE FOOD FIT FOR
HUMAN CONSUMPTION, INCLUDING PERISHABLE AND PREPARED FOODS, DONATED IN
COMPLIANCE WITH APPLICABLE STATE AND FEDERAL FOOD SAFETY LAWS AS CERTI-
A. 9329 3
FIED, MEASURED, AND ACCEPTED BY A NEW YORK STATE CHARITABLE ORGANIZATION
IN GOOD STANDING AS DEFINED BY ARTICLE SEVEN-A OF THE EXECUTIVE LAW.
(2) ALLOWANCE OF CREDIT. AN ELIGIBLE TAXPAYER SUBJECT TO TAX UNDER
THIS ARTICLE SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX IN AN AMOUNT
EQUAL TO:
(A) SIXTY-FIVE PERCENT OF THE FAIR MARKET VALUE OF QUALIFIED FOOD
DONATIONS MADE DURING THE TAXABLE YEAR TO AN ELIGIBLE NONPROFIT FOOD
ASSISTANCE ORGANIZATION; AND
(B) ONE HUNDRED PERCENT OF DOCUMENTED TRANSPORTATION AND STORAGE
EXPENSES DIRECTLY ATTRIBUTABLE TO SUCH DONATIONS.
(3) REFUNDABILITY AND TRANSFERABILITY. IF THE AMOUNT OF CREDIT ALLOW-
ABLE UNDER THIS SUBSECTION EXCEEDS THE ELIGIBLE TAXPAYER'S TAX LIABILITY
FOR THE TAXABLE YEAR, THE EXCESS SHALL BE REFUNDABLE. ALTERNATIVELY, AN
ELIGIBLE TAXPAYER MAY TRANSFER OR ASSIGN THE UNUSED PORTION OF SUCH
CREDIT TO ANOTHER ELIGIBLE TAXPAYER, SUBJECT TO REGULATIONS PROMULGATED
BY THE COMMISSIONER.
(4) LIMITATIONS. (A) THE AGGREGATE AMOUNT OF CREDITS ALLOWED UNDER
THIS SUBSECTION FOR ALL ELIGIBLE TAXPAYERS IN ANY FISCAL YEAR SHALL NOT
EXCEED SEVENTY-FIVE MILLION DOLLARS STATEWIDE, UNLESS INCREASED BY
APPROPRIATION.
(B) THE COMMISSIONER SHALL ADOPT RULES AND REGULATIONS GOVERNING
DOCUMENTATION, SUBSTANTIATION, TRANSFER AND APPLICATION PROCEDURES TO
ENSURE PROGRAM INTEGRITY.
(C) THE DEPARTMENT SHALL COORDINATE WITH THE DEPARTMENT OF AGRICULTURE
AND MARKETS TO VERIFY THE ELIGIBILITY OF NONPROFIT FOOD RECIPIENTS AND
ENSURE DONATED FOOD MEETS SAFETY AND QUALITY STANDARDS.
(5) PARTNERSHIPS AND S CORPORATIONS. IN THE CASE OF A PARTNERSHIP OR S
CORPORATION, THE CREDIT PROVIDED FOR UNDER THIS SUBSECTION SHALL BE
PASSED THROUGH TO PARTNERS, MEMBERS, OR SHAREHOLDERS IN PROPORTION TO
THEIR OWNERSHIP INTERESTS IN THE ENTITY.
§ 5. The department of taxation and finance, in consultation with the
department of agriculture and markets, shall:
1. establish a standardized electronic reporting platform for busi-
nesses and eligible nonprofits to record accepted and usable donations,
transportation, and storage expenses eligible for the credit;
2. publish annual reports to the governor and the legislature includ-
ing:
(a) the total number of taxpayers claiming the credit;
(b) total food rescue tax credits claimed and amount refunded;
(c) pounds of food diverted from waste;
(d) estimated number of meals provided; and
(e) environmental and economic benefits achieved; and
3. develop an outreach and guidance program to inform eligible busi-
nesses and organizations of the availability of the food rescue tax
credit.
§ 6. This act shall take effect on the first of January next succeed-
ing the date upon which it shall have become a law and shall apply to
taxable years beginning on or after such date.