State of Illinois
2017 and 2018


Introduced , by Rep. Sue Scherer


35 ILCS 5/224 new

    Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who make a qualified donation of a crop to a food bank or other charitable organization in Illinois. Provides that the amount of the credit shall be 15% of the value of the quantity of the crop donated. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.

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HB3301LRB100 06250 HLH 16287 b

1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Income Tax Act is amended by adding
5Section 224 as follows:
6    (35 ILCS 5/224 new)
7    Sec. 224. Crop donation credit.
8    (a) For taxable years beginning on or after January 1,
92017, to the extent that such amounts have not been deducted
10for the purposes of calculating the taxpayer's federal adjusted
11gross income, each taxpayer that makes a qualified donation of
12a crop is allowed a credit against the tax imposed by
13subsections (a) and (b) of Section 201. In the case of a
14qualified donation made under circumstances described items
15(1) or (2) of the definition of "qualified donation" set forth
16in subsection (d) of this Section, the amount of the credit
17shall be 15% of the value of the quantity of the crop donated
18computed at the wholesale market price. In the case of a
19qualified donation made under circumstances described in item
20(3) of the definition of "qualified donation" set forth in
21subsection (d) of this Section, the amount of the credit shall
22be 15% of the value of the quantity of the crop donated
23computed at the wholesale market price that the grower would



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1have received had the quantity of the crop donated been sold or
3    (b) For partners, shareholders of Subchapter S
4corporations, and owners of limited liability companies, if the
5liability company is treated as a partnership for purposes of
6federal and State income taxation, the credit under this
7Section shall be determined in accordance with the
8determination of income and distributive share of income under
9Sections 702 and 704 and Subchapter S of the Internal Revenue
11    (c) In no event shall a credit under this Section reduce
12the taxpayer's liability to less than zero. If the amount of
13the credit exceeds the tax liability for the year, the excess
14may be carried forward and applied to the tax liability of the
155 taxable years following the excess credit year. The tax
16credit shall be applied to the earliest year for which there is
17a tax liability. If there are credits for more than one year
18that are available to offset a liability, the earlier credit
19shall be applied first.
20    (d) For the purposes of this Section:
21    "Apparently wholesome food" means:
22        (1) food fit for human consumption; and
23        (2) food that meets all quality and labeling standards
24    imposed by federal, State, or local laws, even though the
25    food may not be readily marketable due to appearance, age,
26    freshness, grade, size, surplus, or other condition.



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1    "Crop" means an agricultural crop producing food for human
2consumption and includes, but is not limited to, bedding plants
3that produce food, orchard stock intended for the production of
4food, and livestock that may be processed into food for human
6    "Food bank or other charitable organization" means any
7organization located in this State, including but not limited
8to a gleaning cooperative, that is exempt from federal income
9taxes under section 501(c)(3) of the Internal Revenue Code and
10that has as a principal or ongoing purpose the distribution of
11food to children or homeless, unemployed, elderly, or
12low-income individuals.
13    "Qualified donation" means the harvest or post-harvest
14contribution in Illinois of a crop or a portion of a crop grown
15primarily to be sold for cash that is donated by the grower of
16the crop to a food bank or other charitable organization
17engaged in the distribution of food without charge, while the
18crop is still usable as food for human consumption and:
19        (1) the grower of the crop has supplied any crop
20    contract quota with the wholesale or retail buyer;
21        (2) if the grower of the crop is a party to a
22    contingent supply contract, the wholesale or retail buyer
23    reduces the crop quota that was reasonably anticipated to
24    be supplied by the grower; or
25        (3) the grower of the crop otherwise determines to make
26    a donation of apparently wholesome food.



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1    "Wholesale market price" means the market price for the
2produce determined either by:
3        (1) the amount paid to the grower by the last previous
4    cash buyer of the particular crop; or
5        (2) in the event there is no previous cash buyer, a
6    market price based upon the market price of the nearest
7    regional wholesale buyer or the regional U-Pick market
8    price.
9    (e) This Section is exempt from the provisions of Section
11    Section 99. Effective date. This Act takes effect upon
12becoming law.