Bill Text: IL HB1344 | 2023-2024 | 103rd General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who make a qualified donation of a crop to a food bank or other charitable organization in Illinois. Provides that the amount of the credit shall be 15% of the value of the quantity of the crop donated. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2023-01-31 - Referred to Rules Committee [HB1344 Detail]
Download: Illinois-2023-HB1344-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by | |||||||||||||||||||
5 | adding Section 234 as follows:
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6 | (35 ILCS 5/234 new) | |||||||||||||||||||
7 | Sec. 234. Crop donation credit. | |||||||||||||||||||
8 | (a) For taxable years beginning on or after January 1, | |||||||||||||||||||
9 | 2024, each taxpayer that makes a qualified donation of a crop | |||||||||||||||||||
10 | is allowed a credit against the tax imposed by subsections (a) | |||||||||||||||||||
11 | and (b) of Section 201 to the extent that such amounts have not | |||||||||||||||||||
12 | been deducted for the purposes of calculating the taxpayer's | |||||||||||||||||||
13 | federal adjusted gross income. In the case of a qualified | |||||||||||||||||||
14 | donation made under the circumstances described in either item | |||||||||||||||||||
15 | (1) or (2) of the definition of "qualified donation" set forth | |||||||||||||||||||
16 | in subsection (d) of this Section, the amount of the credit | |||||||||||||||||||
17 | shall be 15% of the value of the quantity of the crop donated, | |||||||||||||||||||
18 | computed at the wholesale market price. In the case of a | |||||||||||||||||||
19 | qualified donation made under the circumstances described in | |||||||||||||||||||
20 | item (3) of the definition of "qualified donation" set forth | |||||||||||||||||||
21 | in subsection (d) of this Section, the amount of the credit | |||||||||||||||||||
22 | shall be 15% of the value of the quantity of the crop donated, | |||||||||||||||||||
23 | computed at the wholesale market price that the grower would |
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1 | have received had the quantity of crop donated been sold or | ||||||
2 | salable. | ||||||
3 | (b) For partners, shareholders of Subchapter S | ||||||
4 | corporations, and owners of limited liability companies, if | ||||||
5 | the liability company is treated as a partnership for purposes | ||||||
6 | of federal and State income taxation, the credit under this | ||||||
7 | Section shall be determined in accordance with the | ||||||
8 | determination of income and distributive share of income under | ||||||
9 | Sections 702 and 704 and Subchapter S of the Internal Revenue | ||||||
10 | Code. | ||||||
11 | (c) In no event shall a credit under this Section reduce | ||||||
12 | the taxpayer's liability to less than zero. If the amount of | ||||||
13 | the credit exceeds the tax liability for the year, the excess | ||||||
14 | may be carried forward and applied to the tax liability of the | ||||||
15 | 5 taxable years following the excess credit year. The tax | ||||||
16 | credit shall be applied to the earliest year for which there is | ||||||
17 | a tax liability. If there are credits for more than one year | ||||||
18 | that are available to offset a liability, the earlier credit | ||||||
19 | shall be applied first. | ||||||
20 | (d) As used in this Section: | ||||||
21 | "Apparently wholesome food" means: | ||||||
22 | (1) food fit for human consumption; and | ||||||
23 | (2) food that meets all quality and labeling standards | ||||||
24 | imposed by federal, State, or local laws, even though the | ||||||
25 | food may not be readily marketable due to appearance, age, | ||||||
26 | freshness, grade, size, surplus, or other condition. |
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1 | "Crop" means an agricultural crop producing food for human | ||||||
2 | consumption and includes, but is not limited to, bedding | ||||||
3 | plants that produce food, orchard stock intended for the | ||||||
4 | production of food, and livestock that may be processed into | ||||||
5 | food for human consumption. | ||||||
6 | "Food bank or other charitable organization" means any | ||||||
7 | organization located in this State, including, but not limited | ||||||
8 | to, a gleaning cooperative, that is exempt from federal income | ||||||
9 | taxes under section 501(c)(3) of the Internal Revenue Code and | ||||||
10 | that has as a principal or ongoing purpose the distribution of | ||||||
11 | food to children or homeless, unemployed, elderly, or | ||||||
12 | low-income individuals. | ||||||
13 | "Qualified donation" means the harvest or post-harvest | ||||||
14 | contribution in Illinois of a crop or a portion of a crop grown | ||||||
15 | primarily to be sold for cash and donated by the grower of the | ||||||
16 | crop to a food bank or other charitable organization engaged | ||||||
17 | in the distribution of food without charge while the crop is | ||||||
18 | still usable as food for human consumption and: | ||||||
19 | (1) the grower of the crop has supplied any crop | ||||||
20 | contract quota with the wholesale or retail buyer; | ||||||
21 | (2) if the grower of the crop is a party to a | ||||||
22 | contingent supply contract, the wholesale or retail buyer | ||||||
23 | reduces the crop quota that was reasonably anticipated to | ||||||
24 | be supplied by the grower; or | ||||||
25 | (3) the grower of the crop otherwise determines to | ||||||
26 | make a donation of apparently wholesome food. |
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1 | "Wholesale market price" means the market price determined | ||||||
2 | either by: | ||||||
3 | (1) the amount paid to the grower by the last previous | ||||||
4 | cash buyer of the particular crop; or | ||||||
5 | (2) in the event there is no previous cash buyer, a | ||||||
6 | market price based upon the market price of the nearest | ||||||
7 | regional wholesale buyer or the regional U-Pick market | ||||||
8 | price. | ||||||
9 | (e) This Section is exempt from the provisions of Section | ||||||
10 | 250.
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11 | Section 99. Effective date. This Act takes effect upon | ||||||
12 | becoming law.
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