Rhode Island 2025 Regular Session

Rhode Island House Bill H5404 Compare Versions

Only one version of the bill is available at this time.

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5	5	2025 -- H 5404
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7	7	LC001256
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO TAXATION -- TAX CREDIT FOR FOOD DONATION
16	16	Introduced By: Representatives McEntee, O'Brien, Fogarty, Spears, Tanzi, Morales,
17	17	Caldwell, Craven, Cortvriend, and Casimiro
18	18	Date Introduced: February 07, 2025
19	19	Referred To: House Finance
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21	21
22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by 1
24	24	adding thereto the following chapter: 2
25	25	CHAPTER 33.7 3
26	26	TAX CREDIT FOR FOOD DONATION 4
27	27	44-33.7-1. Definitions. 5
28	28	As used in this chapter: 6
29	29	(1) "Apparently wholesome food" means food that is fit for human consumption at the time 7
30	30	it was donated as long as it meets all safety and safety-related standards required by federal, state, 8
31	31	and local laws regardless of compliance with any laws, rules or ordinances regulating the packaging 9
32	32	or labeling of food which are not linked to food safety. "Apparently wholesome food" as stipulated 10
33	33	in the Bill Emerson Good Samaritan Food Donation Act is defined as "food that meets all quality 11
34	34	and labeling standards imposed by federal, state, and local laws and regulations, even though the 12
35	35	food may not be readily marketable due to appearance, age, freshness, grade, size, surplus, or other 13
36	36	conditions." "Apparently wholesome food" does not include canned goods that are leaking, 14
37	37	swollen, dented on a seam, or no longer airtight. 15
38	38	(2) "Donate" means to give without requiring anything of monetary value from the 16
39	39	recipient, except that the term shall include giving food, notwithstanding that the donor receives or 17
40	40	charges a good samaritan reduced price. 18
41	41	(3) "Division" means the division of taxation. 19
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45	45	(4) "Good samaritan reduced price" means a price that is an amount not greater than the 1
46	46	cost of handling, administering, harvesting, processing, packaging, transporting, and distributing 2
47	47	the apparently wholesome food. 3
48	48	(5) "Nonprofit organization" means a nonprofit organization that is exempt from federal 4
49	49	taxation pursuant to § 501(c)(3) of the Federal Internal Revenue Code, 26 U.S.C. § 501(c)(3) that: 5
50	50	(i) Operates for religious, charitable, or educational purposes; 6
51	51	(ii) Does not provide net earnings to, or operate in any other manner, that inures to the 7
52	52	benefit of, any officer, employee, or shareholder of the entity; 8
53	53	(6) "Qualified taxpayer" means an individual, corporation, partnership, organization, 9
54	54	association, or governmental entity, including a producer, retail grocer, wholesaler, hotel, motel, 10
55	55	manufacturer, restaurant, caterer, farmer, school food authority, institute of higher education, 11
56	56	nonprofit food distributor, or hospital.   12
57	57	44-33.7-2. Credit for food donation. 13
58	58	(a) For taxable years beginning on or after January 1, 2026, any qualified taxpayer that 14
59	59	donates apparently wholesome food shall be allowed a credit to be computed as provided in this 15
60	60	chapter against a tax imposed by chapters 11, 14, 17, and 30 of this title, for the taxable year of the 16
61	61	donation. The qualified taxpayer shall be allowed a credit in an amount equal to seventy-five (75%) 17
62	62	percent of the fair market value of such apparently wholesome food. This credit shall not exceed 18
63	63	five thousand dollars ($5,000) per tax year. 19
64	64	(b) In the case of a qualified taxpayer who transports any apparently wholesome food 20
65	65	donated in accordance with subsection (a) of this section for taxable years beginning on or after 21
66	66	January 1, 2026, there shall be allowed a credit to be computed as provided in this chapter against 22
67	67	a tax imposed by chapters 11, 14, 17, and 30 of this title, for the taxable year of the donation. The 23
68	68	qualified taxpayer shall be allowed a credit in an amount equal to fifty (50%) percent of the 24
69	69	transportation costs (or any portion thereof) paid or incurred by the qualified taxpayer with respect 25
70	70	to the conveyance of a donated food, including the coordination or arrangement of transportation 26
71	71	services, in connection with the transportation of that qualified donated food item. This credit shall 27
72	72	not exceed five thousand dollars ($5,000) per tax year. This credit shall only be allowed if the 28
73	73	qualified taxpayer does not receive anything of monetary value, including receipt of a good 29
74	74	samaritan reduced price. 30
75	75	(c) Credits shall be allowed under this section only if: 31
76	76	(1) The use of the donated food by the donee nonprofit organization is related to providing 32
77	77	food to the needy; and 33
78	78	(2) The donated food, if sold by the donee nonprofit organization, is provided to or sold to 34
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82	82	the needy or other nonprofit organizations that intend to use the food to provide food to the needy 1
83	83	at no cost or at a good samaritan reduced price. 2
84	84	(d) Upon receipt of the donated food, the nonprofit organization shall provide a certificate 3
85	85	to the qualified taxpayer, which shall contain the name of the qualified taxpayer, the name and 4
86	86	address of the donee nonprofit organization, the date of the donation, the type and quantity of 5
87	87	donated food, and, as provided by the qualified taxpayer, the fair market value of the donated food. 6
88	88	The certificate shall also include a statement by the donee nonprofit organization that its use and 7
89	89	disposition of the donated food complies with the requirements under subsection (c) of this section. 8
90	90	(e) For every taxable year for which a qualified taxpayer seeks a tax credit under this 9
91	91	chapter, the person shall apply to the division in accordance with the forms, instructions, dates, and 10
92	92	procedures prescribed by the division. 11
93	93	44-33.7-3. Limit on tax credit. 12
94	94	(a) The amount of the credit claimed under § 44-33.7-2(a) and (b) shall not exceed the total 13
95	95	amount of tax imposed upon the qualified taxpayer for the taxable year. Any credit not usable for 14
96	96	the taxable year for which the credit was first allowed may be carried over for credit against the 15
97	97	income taxes of the qualified taxpayer in the next five (5) succeeding taxable years or until the total 16
98	98	amount of the tax credit has been taken, whichever is sooner. 17
99	99	(b) Credits granted to a partnership, limited liability company, or electing small business 18
100	100	corporation (S corporation) shall be allocated to the individual partners, members, or shareholders, 19
101	101	respectively, in proportion to their ownership or interest in such business entities. 20
102	102	(c) Any tax credits claimed shall not reduce a corporation's tax liability below the state 21
103	103	corporate minimum tax. 22
104	104	(d) This chapter amends § 44-30-2.6 to add the tax credit for food donation as an allowable 23
105	105	credit against personal income tax. 24
106	106	44-33.7-4. Promulgation of rules and regulations. 25
107	107	The division shall be authorized to develop guidelines, rules or regulations implementing 26
108	108	the provisions of this chapter. The guidelines, rules and regulations shall include procedures for the 27
109	109	allocation of tax credits among qualified taxpayers.  28
110	110	44-33.7-5. Reporting requirements. 29
111	111	Using information available to the division, the division shall report to the general 30
112	112	assembly, annually, through the division of taxation’s testimony at the May revenue estimating 31
113	113	conference, regarding the use of the credit authorized under this chapter. The report shall include, 32
114	114	at a minimum, the credits generated in the taxable year, the credits claimed in the taxable year, and 33
115	115	the number of qualified taxpayer claimed credits. 34
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119	119	SECTION 2. Chapter 44-30 of the General Laws entitled "Personal Income Tax" is hereby 1
120	120	amended by adding thereto the following section: 2
121	121	44-30-28. Food donation tax credit. 3
122	122	Pursuant to the provisions of chapter 33.7 of title 44, an entity or individual shall be entitled 4
123	123	to an income tax credit for the donation of food up to five thousand dollars ($5,000) per year. 5
124	124	SECTION 3. This act shall take effect on January 1, 2026. 6
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131	131	EXPLANATION
132	132	BY THE LEGISLATIVE COUNCIL
133	133	OF
134	134	A N A C T
135	135	RELATING TO TAXATION -- TAX CREDIT FOR FOOD DONATION
136	136	***
137	137	This act would provide a tax credit for food donations by qualified taxpayers to nonprofit 1
138	138	organizations up to five thousand dollars ($5,000) per year. 2
139	139	This act would take effect on January 1, 2026. 3
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