102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB0279
 
Introduced 2/19/2021, by Sen. Terri Bryant
 
SYNOPSIS AS INTRODUCED:
 

 
35 ILCS 5/232 new

     Amends the Illinois Income Tax Act. Creates an income tax credit to taxpayers that own and operate a small farm and make a qualifying food commodity donation to a food bank or emergency feeding organization. Provides that the credit shall be equal to the lesser of $5,000 or 15% of the value of the food commodity donated. Effective immediately.
  


LRB102 04423 HLH 14441 b

FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 

  
SB0279LRB102 04423 HLH 14441 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 
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, 
92021, 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.
16    (b) For the purposes of this Section: 
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. 
 
 
SB0279- 2 -LRB102 04423 HLH 14441 b

1        "Qualifying small farm" means a small family farm, 
2    rural-residence family farm, or intermediate family farms, 
3    as defined by the United States Department of 
4    Agriculture's Economic Research Service, that has gross 
5    sales of less than $250,000 per year and is located in the 
6    State. 
7        "Qualifying taxpayer" means an Illinois resident who: 
8    (i) owns and operates a qualifying small farm in the 
9    State; (ii) produces the donated food commodity; and (iii) 
10    transfers ownership of the donated food commodity to an 
11    Illinois food bank or emergency feeding organization. 
12    (c) In no event shall a credit under this Section reduce a 
13taxpayer's liability to less than zero. If the amount of the 
14credit exceeds the tax liability for the year, the excess may 
15be carried forward and applied to the tax liability for the 5 
16taxable years following the excess credit year. The tax credit 
17shall be applied to the earliest year for which there is a tax 
18liability. If there are credits for more than one year that are 
19available to offset liability, the earliest credit shall be 
20applied first. 
21    (d) The Department shall adopt rules to implement the 
22provisions of this Section and may work with the United States 
23Department of Agriculture or any other relevant agency to 
24implement the provisions of this Section. 
25    (e) This Section is exempt from the provisions of Section 
26250. 
 
 
 
 
SB0279- 3 -LRB102 04423 HLH 14441 b

1    Section 99. Effective date. This Act takes effect upon 
2becoming law.