SB0279sam001 102ND GENERAL ASSEMBLY

Sen. Terri Bryant

Filed: 3/24/2021

10200SB0279sam001 LRB102 04423 HLH 23953 a

AMENDMENT TO SENATE BILL 279

AMENDMENT NO. ______. Amend Senate Bill 279 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Income Tax Act is amended by adding Section 232 as follows:

(35 ILCS 5/232 new)

Sec. 232. Credit for food donations.

(a) For taxable years beginning on or after January 1, 2022, there shall be allowed a credit against the tax imposed by subsections (a) and (b) of Section 201 of this Act to qualifying taxpayers that own and operate a qualifying small farm and make a qualifying food commodity donation to a food bank or emergency feeding organization. The credit shall be in an amount equal to the lesser of $5,000 or 15% of the value of the food commodity donated. The food bank or emergency feeding organization shall provide documentation to the taxpayer that (i) sets forth the value of the food commodity donated and (ii) verifies that the donation meets the requirements of this Section; that documentation shall be attached to the taxpayer's State income tax return in the form and manner provided by the Department by rule.

(b) For the purposes of this Section:

"Emergency feeding organization" means a food pantry, soup kitchen, hunger relief center, or other food or feeding center that, as an integral part of its normal activities, provides meals or food to feed needy persons on a regular basis.

"Food bank" means a public or charitable institution that maintains an established operation involving the provision of food or edible commodities, or the products of food or edible commodities, to emergency feeding organizations.

"Qualifying food commodity" means food that meets all quality and labeling standards imposed by federal, State, and local laws and regulations, even though the food may not be readily marketable due to the appearance, age, freshness, grade, size, surplus, or other conditions. Qualifying food commodity does not mean food that is damaged, out of condition, or unfit for human consumption.

"Qualifying small farm" means a small family farm, rural-residence family farm, or intermediate family farms, as defined by the United States Department of Agriculture's Economic Research Service, that has gross sales of less than $250,000 per year and is located in the State.

"Qualifying taxpayer" means an Illinois resident who: (i) owns and operates a qualifying small farm in the State; (ii) produces the donated food commodity; and (iii) transfers ownership of the donated food commodity to an Illinois food bank or emergency feeding organization.

(c) In no event shall a credit under this Section reduce a taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability for the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset liability, the earliest credit shall be applied first.

(d) For partners, shareholders of subchapter S corporations, and owners of limited liability companies, if the liability company is treated as a partnership for purposes of federal and State income taxation, there shall be allowed a credit under this Section to be determined in accordance with the determination of income and distributive share of income under Sections 702 and 704 and subchapter S of the Internal Revenue Code.

(e) The Department shall adopt rules to implement the provisions of this Section and may work with the United States Department of Agriculture or any other relevant agency to implement the provisions of this Section.

(f) This Section is exempt from the provisions of Section 250.

Section 99. Effective date. This Act takes effect upon becoming law.".