PRINTER'S NO. 2389
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1641
Session of
2015
INTRODUCED BY DRISCOLL, DiGIROLAMO, SCHWEYER, SCHLOSSBERG,
LONGIETTI, KINSEY, MURT, THOMAS, READSHAW, BULLOCK, O'BRIEN,
McNEILL, BIZZARRO, DAVIS, COHEN, ZIMMERMAN, FARINA,
YOUNGBLOOD, D. COSTA, KIM, BRADFORD AND SCHEMEL,
OCTOBER 19, 2015
REFERRED TO COMMITTEE ON FINANCE, OCTOBER 19, 2015
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," providing for a food donation tax credit.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, is amended by adding an article to
read:
ARTICLE XVIII-G
FOOD DONATION TAX CREDIT
Section 1801-G. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
context clearly indicates otherwise:
"Department." The Department of Revenue of the Commonwealth.
"Emergency food provider." As defined in section 2 of the
act of December 11, 1992 (P.L.807, No.129), known as the State
Food Purchase Program Act.
"Glean." As defined in 42 Pa.C.S. ยง 8338 (relating to
liability for damages from donated food and grocery products).
"Pass-through entity." A partnership as defined in section
301(n.0) or a Pennsylvania S Corporation as defined in section
301(n.1).
"Qualified tax liability." The liability for taxes imposed
under Article III or IV.
"Regional food bank." As defined in section 2 of the act of
December 11, 1992 (P.L.807, No.129), known as the State Food
Purchase Program Act.
"Tax credit." The food donation tax credit available under
this article.
"Taxpayer." An individual or entity subject to taxation
under Article III or IV.
Section 1802-G. Application.
A taxpayer applying to claim a food donation tax credit must
complete and submit to the department a tax credit application
on a form and in a manner as determined by the department.
Section 1803-G. Applicable taxes.
A taxpayer may apply the tax credit to the taxpayer's
qualified tax liability.
Section 1804-G. Eligibility.
(a) Tax credit.--A taxpayer who donates food to a regional
food bank or emergency food provider shall be allowed a tax
credit against the taxes imposed under Article III or IV.
20150HB1641PN2389 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(b) Amount.--The tax credit may not exceed a qualifying
amount for the tax year in which the tax credit is claimed. The
qualifying amount is 15% of the value of the commodities donated
during the tax year in which the tax credit is claimed. The
value of the commodities shall be determined in the same manner
as a charitable contribution of food for Federal tax purposes
under section 170(e)(3)(C) of the Internal Revenue Code of 1986
(Public Law 99-514, 26 U.S.C. ยง 170(e)(3)(C)). Food collected or
gleaned for donating satisfies this requirement. The tax credit
may not exceed $10,000 per taxpayer.
(c) Limitation.--The donated food commodity may not be
damaged or out-of-condition and declared to be unfit for human
consumption by a Federal, State or local health official. A food
commodity that meets the requirements for donated food under any
Federal emergency food assistance program satisfies this
requirement. A regional food bank or emergency food provider may
accept or reject a donation of food for any reason.
Section 1805-G. Availability.
(a) Availability.--A tax credit shall be made available by
the department on a first-come, first-served basis.
(b) Limitation.--Each fiscal year, $5,000,000 in tax credits
shall be made available to the department and may be awarded by
the department in accordance with this article. In any fiscal
year, the department may award prior fiscal year tax credits not
previously issued.
Section 1806-G. Limitations.
The following apply to tax credits under this article:
(1) If the taxpayer cannot use the entire amount of the
tax credit for the taxable year in which the tax credit is
first approved, the excess may be carried over to succeeding
20150HB1641PN2389 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
taxable years and used as a credit against the qualified tax
liability of the taxpayer for the taxable years. Each time
the tax credit is carried over to a succeeding taxable year,
the tax credit shall be reduced by the amount of the tax
credit used as a credit during the immediately preceding
taxable year. The tax credit may be carried over and applied
to succeeding taxable years for no more than three taxable
years following the first taxable year for which the taxpayer
was entitled to claim the credit.
(2) A tax credit approved by the department in a taxable
year first shall be applied against the taxpayer's qualified
tax liability for the current taxable year as of the date on
which the credit was approved before the tax credit can be
applied against any tax liability under paragraph (1).
(3) A taxpayer shall not be entitled to carry forward,
carry back, obtain a refund of or sell or assign all or any
portion of an unused tax credit granted to the taxpayer under
this article.
Section 1807-G. Pass-through entity.
(a) General rule.--If a pass-through entity has any unused
tax credits under section 1806-G, the entity may elect in
writing, according to procedures established by the department,
to transfer all or a portion of the credit to shareholders,
members or partners in proportion or the share of the entity's
distributive income to which the shareholder, member or partner
is entitled.
(b) Limitation.--A pass-through entity and a shareholder,
member or partner of a pass-through entity may not claim the
credit under subsection (a) for the same food donation.
(c) Application.--A shareholder, member or partner of a
20150HB1641PN2389 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
pass-through entity to whom a credit is transferred under
subsection (a) shall immediately claim the credit in the taxable
year in which the transfer is made. The shareholder, member or
partner may not carry forward, carry back, obtain a refund of or
sell or assign the credit.
Section 1808-G. Guidelines.
(a) Guidelines.--The department shall develop and publish
guidelines necessary to implement this article.
(b) Rules.--The department may promulgate rules to implement
the provisions of this section.
Section 2. This act shall apply to taxable years beginning
after December 31, 2015.
Section 3. This act shall take effect immediately.
20150HB1641PN2389 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13