Personal income tax: credit: food banks: donated fresh fruits and vegetables.
AB 279 stands to significantly impact state laws by formalizing the incentives for agricultural producers to donate surplus produce. By allowing a tax credit, the bill encourages greater participation from farmers, which can help alleviate food insecurity in communities across California. The Franchise Tax Board is tasked with reporting the utilization of this credit periodically, thereby ensuring legislative oversight and tracking the effectiveness in increasing food bank donations.
Assembly Bill 279, introduced by Assembly Member Burke, amends the Revenue and Taxation Code to enhance tax credits for the donation of fresh fruits and vegetables to food banks in California. This legislation allows qualified taxpayers—defined as those responsible for harvesting and managing crops—to receive a tax credit of 15% of the value of donated fresh produce. The credit is applicable for taxable years from 2017 until 2022, aiming to increase the supply of fresh foods available to food banks and improve nutritional assistance for underserved populations.
The overall sentiment surrounding AB 279 appears positive among proponents who see it as a constructive step towards combating hunger and supporting local agriculture. Advocates argue that the bill not only helps food banks but also allows farmers to reduce waste by providing an economic benefit for their excess produce. However, there may be concerns about the actual uptake of the credit and whether it fully addresses the challenges faced by food banks in receiving adequate supplies.
Despite its intended benefits, some contention exists regarding the adequacy of the credit amount in truly incentivizing donations among all growers, especially smaller farms that may struggle with cash flow or logistical issues in making regular donations. Additionally, while the bill mandates the Franchise Tax Board to compile reports on the effectiveness of the credit, there are questions about how to ensure compliance and accurate reporting from multiple agricultural entities, which can vary widely in scale and capability.