Senate File 2323 - Introduced SENATE FILE 2323 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SF 2291) (SUCCESSOR TO SSB 3095) A BILL FOR An Act providing for charitable food donations to food banks 1 and similar organizations, including by providing for 2 appropriations and a tax credit and including applicability 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5256SZ (2) 84 da/sc
S.F. 2323 SUBCHAPTER I 1 GENERAL 2 Section 1. NEW SECTION . 190B.101 Purpose. 3 The purpose of this chapter is to effectively and 4 efficiently utilize Iowa’s abundant supplies of nutritional 5 food to relieve situations of emergency or distress experienced 6 by individuals or families in need who reside in this state, 7 including low-income individuals or families and unemployed 8 individuals or families. 9 Sec. 2. NEW SECTION . 190B.102 Definitions. 10 As used in this chapter, unless the context otherwise 11 requires: 12 1. “Federal emergency food assistance program” means the 13 federal emergency food assistance program, as provided in 7 14 C.F.R. pts. 250 and 251. 15 2. “Food” means a substance which is used in whole or in 16 part for human consumption in compliance with federal and state 17 standards or requirements including a donated food that meets 18 the requirements of the federal emergency food assistance 19 program. 20 3. “Iowa emergency feeding organization” means a public or 21 private nonprofit organization whose mission is compatible with 22 the purpose of this chapter as provided in section 190B.101 and 23 which includes an Iowa food bank or other organization that 24 operates at a congregate nutritional site or that provides 25 home-delivered meals in this state. An Iowa emergency feeding 26 organization includes but is not limited to a food pantry, 27 hunger relief center, or soup kitchen. 28 4. “Iowa food bank” means a private nonprofit organization 29 which meets all of the following requirements: 30 a. It receives, holds, and directly or indirectly 31 distributes food principally to Iowa emergency feeding 32 organizations in a manner compatible with the purpose of this 33 chapter as provided in section 190B.101. 34 b. It is an organization described in section 501(c)(3) 35 -1- LSB 5256SZ (2) 84 da/sc 1/ 7
S.F. 2323 of the Internal Revenue Code and exempt from taxation under 1 section 501(a) of the Internal Revenue Code. 2 c. It receives contributions that are deductible under 3 section 170 of the Internal Revenue Code. 4 5. “Iowa food bank association” or “association” means an 5 organization that meets all of the following requirements: 6 a. It is organized as a nonprofit corporation under chapter 7 504. 8 b. Its principal office is or has been located in this 9 state. 10 c. It is an organization described in section 501(c)(3) 11 of the Internal Revenue Code and exempt from taxation under 12 section 501(a) of the Internal Revenue Code. 13 d. It receives contributions that are deductible under 14 section 170 of the Internal Revenue Code. 15 e. Its members include Iowa food banks, or affiliations 16 of Iowa food banks, that together serve all counties in this 17 state. 18 SUBCHAPTER II 19 IOWA FOOD-LINK TO FOOD-BANK INITIATIVE 20 Sec. 3. NEW SECTION . 190B.201 Definition. 21 As used in this subchapter, “department” means the department 22 of human services. 23 Sec. 4. NEW SECTION . 190B.202 Department of human services 24 —— cooperation with other agencies. 25 1. This subchapter shall be administered by the department 26 of human services. 27 2. The department shall adopt all rules necessary to 28 administer this subchapter. 29 3. Each fiscal year, the department shall award the 30 amount appropriated in section 190B.203, to an Iowa food bank 31 association selected by the department to manage programs 32 associated with an Iowa food-link to food-bank initiative. 33 The department shall execute a contract with the association 34 to provide for the terms and conditions of the program’s 35 -2- LSB 5256SZ (2) 84 da/sc 2/ 7
S.F. 2323 management. A contract shall not obligate the state to pay 1 moneys for multiple fiscal years. 2 4. The department of agriculture and land stewardship, 3 the department of public health, and the department of 4 inspections and appeals shall cooperate with the department of 5 human services to administer the Iowa food-link to food-bank 6 initiative. 7 Sec. 5. NEW SECTION . 190B.203 Iowa food-link to food-bank 8 initiative —— appropriation. 9 1. For the fiscal year beginning July 1, 2012, and ending 10 June 30, 2013, and for each subsequent fiscal year, there 11 is appropriated from the general fund of the state to the 12 department of human services the amount of two million dollars 13 to support an Iowa food-link to food-bank initiative to further 14 the purpose provided in section 190B.101. 15 2. The department of human services shall allocate 16 one million eight hundred thousand dollars of the amount 17 appropriated in subsection 1 to an Iowa food bank association 18 selected by the department as provided in section 190B.201 for 19 purposes of supporting the following programs: 20 a. An Iowa emergency food purchase program. The department 21 shall allocate one million seven hundred thousand dollars to 22 the association for the purchase of food on behalf of an Iowa 23 emergency feeding organization or for the distribution of 24 moneys to Iowa emergency feeding organizations for the purchase 25 of food. 26 (1) A preference shall be provided to the purchase of food 27 produced, processed, or packaged within this state whenever 28 reasonably practicable. 29 (2) The food shall be purchased in a manner that best 30 furthers a significant economic benefit to communities of this 31 state. 32 b. An Iowa emergency food nutritional education program. 33 The department shall allocate one hundred thousand dollars to 34 the association to distribute the moneys to one or more Iowa 35 -3- LSB 5256SZ (2) 84 da/sc 3/ 7
S.F. 2323 emergency feeding organizations in order to provide instruction 1 regarding nutrition and promote a lifelong healthy diet. 2 3. The department of human services shall allocate two 3 hundred thousand dollars of the amount appropriated in 4 subsection 1 to an Iowa food bank association selected by the 5 department as provided in section 190B.202 for purposes of 6 administering the programs provided in that section. 7 SUBCHAPTER III 8 FROM FARM TO FOOD DONATION TAX CREDIT 9 Sec. 6. NEW SECTION . 190B.301 Definitions. 10 As used in this subchapter, unless the context otherwise 11 requires: 12 1. “Agricultural land” means the same as defined in section 13 425A.2. 14 2. “Department” means the department of revenue. 15 3. “Food commodity” means any commodity that is derived 16 from an agricultural animal or crop, both as defined in section 17 717A.1, which was produced on agricultural land and which is 18 intended to be used as food. 19 4. “Tax credit” means the from farm to food donation tax 20 credit as established in this subchapter. 21 Sec. 7. NEW SECTION . 190B.302 Department of revenue —— 22 cooperation with other departments. 23 1. This subchapter shall be administered by the department 24 of revenue. 25 2. The department shall adopt all rules necessary to 26 administer this subchapter. 27 3. The department of agriculture and land stewardship, the 28 department of public health, the department of human services, 29 and the department of inspections and appeals shall cooperate 30 with the department of revenue to administer this subchapter. 31 Sec. 8. NEW SECTION . 190B.303 From farm to food donation 32 tax credit. 33 A from farm to food donation tax credit is allowed against 34 the taxes imposed in chapter 422, divisions II and III, as 35 -4- LSB 5256SZ (2) 84 da/sc 4/ 7
S.F. 2323 provided in this subchapter. 1 Sec. 9. NEW SECTION . 190B.304 From farm to food donation 2 tax credit —— eligibility. 3 In order to qualify for a from farm to food donation tax 4 credit, all of the following must apply: 5 1. The taxpayer must produce the donated food commodity. 6 2. The taxpayer must transfer title to a food commodity to 7 an Iowa food bank, or an Iowa emergency feeding organization, 8 recognized by the department. The taxpayer shall not receive 9 remuneration for the transfer. 10 3. a. The food commodity must be intended for human 11 consumption in its raw or processed state. 12 (1) A food commodity in its raw state for processing 13 includes but is not limited to milk, eggs, vegetables, fruits, 14 nuts, syrup, and honey. 15 (2) A food commodity in its processed state includes but is 16 not limited to dairy products, meat, or poultry products. 17 b. A food commodity cannot be damaged or out-of-condition 18 and declared to be unfit for human consumption by a federal, 19 state, or local health official. A food commodity that meets 20 the requirements for donated foods pursuant to the federal 21 emergency food assistance program satisfies this requirement. 22 4. A taxpayer claiming the tax credit shall provide 23 documentation supporting the tax credit claim in a form and 24 manner prescribed by the department by rule. 25 Sec. 10. NEW SECTION . 190B.305 From farm to food donation 26 tax credit —— claims filed by individuals who belong to business 27 entities. 28 An individual may claim a from farm to food donation 29 tax credit of a partnership, limited liability company, 30 S corporation, estate, or trust electing to have income 31 taxed directly to the individual. The amount claimed by the 32 individual shall be based upon the pro rata share of the 33 individual’s earnings from the partnership, limited liability 34 company, S corporation, estate, or trust. 35 -5- LSB 5256SZ (2) 84 da/sc 5/ 7
S.F. 2323 Sec. 11. NEW SECTION . 190B.306 From farm to food donation 1 tax credit —— limits on claims. 2 A from farm to food donation tax credit is subject to all of 3 the following limitations: 4 1. The tax credit shall not exceed a qualifying amount for 5 the tax year that the tax credit is claimed. The qualifying 6 amount is the lesser of the following: 7 a. Ten percent of the value of the commodities donated 8 during the tax year for which the credit is claimed. The value 9 of the commodities shall be determined in the same manner as a 10 charitable contribution of food for federal tax purposes under 11 section 170(e)(3)(C) of the Internal Revenue Code. 12 b. Five thousand dollars. 13 2. A tax credit in excess of the taxpayer’s liability for 14 the tax year is not refundable but may be credited to the tax 15 liability for the following five years or until depleted, 16 whichever is earlier. 17 3. The amount of the contribution for which the tax credit 18 is claimed shall not be deductible in determining taxable 19 income for state tax purposes. 20 4. A tax credit shall not be carried back to a tax year 21 prior to the tax year in which the taxpayer claims the tax 22 credit. 23 Sec. 12. NEW SECTION . 422.11L From farm to food donation 24 tax credit. 25 The taxes imposed under this division, less the credits 26 allowed under section 422.12, shall be reduced by a from farm 27 to food donation tax credit as allowed under chapter 190B, 28 subchapter III. 29 Sec. 13. Section 422.33, Code Supplement 2011, is amended by 30 adding the following new subsection: 31 NEW SUBSECTION . 29. The taxes imposed under this division 32 shall be reduced by a from farm to food donation tax credit as 33 allowed under chapter 190B, subchapter III. 34 Sec. 14. APPLICABILITY. The provisions of this Act 35 -6- LSB 5256SZ (2) 84 da/sc 6/ 7
S.F. 2323 providing for a from farm to food donation tax credit apply to 1 tax years beginning on or after January 1, 2013. 2 EXPLANATION 3 GENERAL. This bill provides for charitable food donations 4 to food banks and other emergency feeding organizations that 5 relieve situations of emergency or distress experienced by 6 individuals or families in need who reside in this state. 7 IOWA FOOD-LINK TO FOOD-BANK INITIATIVE. The bill creates 8 an Iowa food-link to food-bank initiative administered by the 9 department of human services. Each fiscal year, moneys from 10 the general fund are appropriated to the department in order to 11 support several programs managed by an association representing 12 Iowa food banks. The programs include the purchase of 13 food, the improvement of food storage and distribution 14 infrastructure, and instruction regarding nutrition and diet. 15 TAX CREDIT —— GENERAL. The bill establishes a from farm 16 to food donation tax credit against individual or corporate 17 income taxes. The tax credit may be claimed by the taxpayer 18 who produces the food. The tax credit is administered by the 19 department of revenue. 20 TAX CREDIT —— TAXPAYERS. The bill provides that the 21 taxpayer may claim a tax credit for 10 percent of the value 22 of donated commodities up to $5,000. The bill requires that 23 the commodities be suitable for human consumption. The bill 24 provides that if the tax credit is claimed by the taxpayer 25 the amount of the contribution is not deductible for state 26 income tax purposes. The bill provides that the tax credit 27 is not refundable but allows a taxpayer to carry forward the 28 tax credit for up to five years. An individual may claim a 29 tax credit of a partnership, limited liability company, S 30 corporation, estate, or trust electing to have income taxed 31 directly to the individual. 32 TAX CREDIT —— APPLICABILITY. The tax credit applies to tax 33 years beginning on or after January 1, 2013. 34 -7- LSB 5256SZ (2) 84 da/sc 7/ 7