2018 -- S 2365

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LC004774

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO TAXATION

     

     Introduced By: Senators Felag, Sosnowski, and DiPalma

     Date Introduced: February 15, 2018

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by

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adding thereto the following chapter:

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CHAPTER 70

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CHARITABLE FOOD DONATION TAX CREDIT

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     44-70-1. Purpose.

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     The purpose of this chapter is to encourage donations of food and grocery products to

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non-profit organizations for distribution to needy individuals.

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     44-70-2. Definitions.

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     As used in this chapter:

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     (1) "Apparently wholesome food" means food that meets all quality and labeling

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standards imposed by federal, state, and local laws and regulations even though the food may not

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be readily marketable due to appearance, age, freshness, grade, size, surplus, or other conditions

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as defined in the Bill Emerson Good Samaritan Food Donation Act 42 U.S.C. 1791.

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     (2) "Taxpayer" means any individual subject to tax pursuant to chapter 30 of title 44 or

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any corporation or entity subject to tax pursuant to chapter 11 of title 44.

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     44-70-3. Tax credit.

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     In any taxable year in which a taxpayer makes a charitable contribution of apparently

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wholesome food from any trade or business of the taxpayer, the taxpayer shall be allowed a credit

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against the liability imposed by chapters 11 or 30 of title 44 equal to fifteen percent (15%) of the

 

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fair market value of said contribution. In the case of a taxpayer whose business is not conducted

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entirely within the state, the amount of the credit must be apportioned, as provided by law, and

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the credit calculated based on the apportioned amount. If the amount of the credit allowed

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hereunder exceeds the taxpayer's liability, the division of taxation shall treat such excess as an

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overpayment and shall pay the taxpayer the amount of such excess without interest.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION

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     This act would establish a charitable food donation tax credit to encourage donations of

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food to nonprofit organizations. The tax credit established would be equal to fifteen percent

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(15%) of the fair market value of the contribution.

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     This act would take effect upon passage.

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