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