Sen. Terri Bryant

Filed: 3/24/2021

 

 


 

 


 
10200SB0279sam001LRB102 04423 HLH 23953 a

1
AMENDMENT TO SENATE BILL 279

2    AMENDMENT NO. ______. Amend Senate Bill 279 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Income Tax Act is amended by
5adding Section 232 as follows:
 
6    (35 ILCS 5/232 new)
7    Sec. 232. Credit for food donations.
8    (a) For taxable years beginning on or after January 1,
92022, there shall be allowed a credit against the tax imposed
10by subsections (a) and (b) of Section 201 of this Act to
11qualifying taxpayers that own and operate a qualifying small
12farm and make a qualifying food commodity donation to a food
13bank or emergency feeding organization. The credit shall be in
14an amount equal to the lesser of $5,000 or 15% of the value of
15the food commodity donated. The food bank or emergency feeding
16organization shall provide documentation to the taxpayer that

 

 

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1(i) sets forth the value of the food commodity donated and (ii)
2verifies that the donation meets the requirements of this
3Section; that documentation shall be attached to the
4taxpayer's State income tax return in the form and manner
5provided by the Department by rule.
6    (b) For the purposes of this Section:
7        "Emergency feeding organization" means a food pantry,
8    soup kitchen, hunger relief center, or other food or
9    feeding center that, as an integral part of its normal
10    activities, provides meals or food to feed needy persons
11    on a regular basis.
12        "Food bank" means a public or charitable institution
13    that maintains an established operation involving the
14    provision of food or edible commodities, or the products
15    of food or edible commodities, to emergency feeding
16    organizations.
17        "Qualifying food commodity" means food that meets all
18    quality and labeling standards imposed by federal, State,
19    and local laws and regulations, even though the food may
20    not be readily marketable due to the appearance, age,
21    freshness, grade, size, surplus, or other conditions.
22    Qualifying food commodity does not mean food that is
23    damaged, out of condition, or unfit for human consumption.
24        "Qualifying small farm" means a small family farm,
25    rural-residence family farm, or intermediate family farms,
26    as defined by the United States Department of

 

 

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1    Agriculture's Economic Research Service, that has gross
2    sales of less than $250,000 per year and is located in the
3    State.
4        "Qualifying taxpayer" means an Illinois resident who:
5    (i) owns and operates a qualifying small farm in the
6    State; (ii) produces the donated food commodity; and (iii)
7    transfers ownership of the donated food commodity to an
8    Illinois food bank or emergency feeding organization.
9    (c) In no event shall a credit under this Section reduce a
10taxpayer's liability to less than zero. If the amount of the
11credit exceeds the tax liability for the year, the excess may
12be carried forward and applied to the tax liability for the 5
13taxable years following the excess credit year. The tax credit
14shall be applied to the earliest year for which there is a tax
15liability. If there are credits for more than one year that are
16available to offset liability, the earliest credit shall be
17applied first.
18    (d) For partners, shareholders of subchapter S
19corporations, and owners of limited liability companies, if
20the liability company is treated as a partnership for purposes
21of federal and State income taxation, there shall be allowed a
22credit under this Section to be determined in accordance with
23the determination of income and distributive share of income
24under Sections 702 and 704 and subchapter S of the Internal
25Revenue Code.
26    (e) The Department shall adopt rules to implement the

 

 

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1provisions of this Section and may work with the United States
2Department of Agriculture or any other relevant agency to
3implement the provisions of this Section.
4    (f) This Section is exempt from the provisions of Section
5250.
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.".