Full Text of HB3460 101st General Assembly
HB3460 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB3460 Introduced , by Rep. Lance Yednock SYNOPSIS AS INTRODUCED: |
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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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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Income Tax Act is amended by adding | 5 | | Section 229 as follows: | 6 | | (35 ILCS 5/229 new) | 7 | | Sec. 229. Crop donation credit. | 8 | | (a) For taxable years beginning on or after January 1, | 9 | | 2019, to the extent that such amounts have not been deducted | 10 | | for the purposes of calculating the taxpayer's federal adjusted | 11 | | gross income, each taxpayer that makes a qualified donation of | 12 | | a crop is allowed a credit against the tax imposed by | 13 | | subsections (a) and (b) of Section 201. In the case of a | 14 | | qualified donation made under circumstances described items | 15 | | (1) or (2) of the definition of "qualified donation" set forth | 16 | | in subsection (d) of this Section, the amount of the credit | 17 | | shall be 15% of the value of the quantity of the crop donated | 18 | | computed at the wholesale market price. In the case of a | 19 | | qualified donation made under circumstances described in item | 20 | | (3) of the definition of "qualified donation" set forth in | 21 | | subsection (d) of this Section, the amount of the credit shall | 22 | | be 15% of the value of the quantity of the crop donated | 23 | | computed at the wholesale market price that the grower would |
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| 1 | | have received had the quantity of the crop donated been sold or | 2 | | salable. | 3 | | (b) For partners, shareholders of Subchapter S | 4 | | corporations, and owners of limited liability companies, if the | 5 | | liability company is treated as a partnership for purposes of | 6 | | federal and State income taxation, the credit under this | 7 | | Section shall be determined in accordance with the | 8 | | determination of income and distributive share of income under | 9 | | Sections 702 and 704 and Subchapter S of the Internal Revenue | 10 | | Code. | 11 | | (c) In no event shall a credit under this Section reduce | 12 | | the taxpayer's liability to less than zero. If the amount of | 13 | | the credit exceeds the tax liability for the year, the excess | 14 | | may be carried forward and applied to the tax liability of the | 15 | | 5 taxable years following the excess credit year. The tax | 16 | | credit shall be applied to the earliest year for which there is | 17 | | a tax liability. If there are credits for more than one year | 18 | | that are available to offset a liability, the earlier credit | 19 | | shall 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 | 2 | | consumption and includes, but is not limited to, bedding plants | 3 | | that produce food, orchard stock intended for the production of | 4 | | food, and livestock that may be processed into food for human | 5 | | consumption. | 6 | | "Food bank or other charitable organization" means any | 7 | | organization located in this State, including but not limited | 8 | | to a gleaning cooperative, that is exempt from federal income | 9 | | taxes under section 501(c)(3) of the Internal Revenue Code and | 10 | | that has as a principal or ongoing purpose the distribution of | 11 | | food to children or homeless, unemployed, elderly, or | 12 | | low-income individuals. | 13 | | "Qualified donation" means the harvest or post-harvest | 14 | | contribution in Illinois of a crop or a portion of a crop grown | 15 | | primarily to be sold for cash that is donated by the grower of | 16 | | the crop to a food bank or other charitable organization | 17 | | engaged in the distribution of food without charge, while the | 18 | | crop 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 | 2 | | produce 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 | 10 | | 250.
| 11 | | Section 99. Effective date. This Act takes effect upon | 12 | | becoming law.
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