2019 -- S 0121

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LC000791

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO TAXATION

     Introduced By: Senators Felag, Conley, Sosnowski, DiPalma, and Seveney

     Date Introduced: January 24, 2019

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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

adding thereto the following chapter:

CHAPTER 70

CHARITABLE FOOD DONATION TAX CREDIT

     44-70-1. Purpose.

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

non-profit organizations for distribution to needy individuals.

     44-70-2. Definitions.

     As used in this chapter:

     (1) "Apparently wholesome food" 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 appearance, age, freshness, grade, size, surplus, or other conditions

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

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

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

     44-70-3. Tax credit.

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

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

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

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

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

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

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

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

     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

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

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

     This act would take effect upon passage.

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