Bill Text: MI HB4038 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Individual income tax: credit; credit for donation of agricultural products to hunger relief charitable organizations; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.713) by adding secs. 277 & 677.
Spectrum: Partisan Bill (Democrat 13-0)
Status: (Introduced - Dead) 2019-01-15 - Bill Electronically Reproduced 01/15/2019 [HB4038 Detail]
Download: Michigan-2019-HB4038-Introduced.html
HOUSE BILL No. 4038
January 15, 2019, Introduced by Reps. Elder, Hope, Pohutsky, Brixie, Kennedy, Witwer, Cherry, Pagan, Koleszar, Chirkun, Jones, Cynthia Johnson and Lasinski and referred to the Committee on Tax Policy.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.713) by adding sections 277 and 677.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 277. (1) For tax years beginning on and after January 1,
2019, a qualified taxpayer that donates edible agricultural
products to a hunger-relief charitable organization located in this
state may claim a credit against the tax imposed by this part in an
amount equal to 50% of the aggregate value of the edible
agricultural products, as determined under subsection (2), that the
qualified taxpayer donated to a hunger-relief charitable
organization located in this state during the tax year or
$3,000.00, whichever is less.
(2) At the time of the donation, the qualified taxpayer shall
provide to the hunger-relief charitable organization the estimated
value of the donated edible agricultural products. The qualified
taxpayer shall determine the value of the donated edible
agricultural products as follows:
(a) If there was a previous sale of the edible agricultural
products to a buyer, the qualified taxpayer shall determine the
value of the donated edible agricultural products based on an
invoice or other statement identifying the price received by the
qualified taxpayer for those edible agricultural products of
comparable grade or quality.
(b) If there is no previous sale to a buyer, the qualified
taxpayer shall, on the date of the donation, determine the value of
the donated edible agricultural products based on the fair market
value as determined by average weekly regional produce auction
prices or United States Department of Agriculture prices for meat,
fish, and dairy products.
(3) The hunger-relief charitable organization shall provide to
the donor, on a form prescribed by the department, a signed and
dated statement containing, at a minimum, all of the following:
(a) The type and quantity of product donated.
(b) The name, address, and taxpayer identification number of
the donor.
(c) The name and address of the donee hunger-relief charitable
organization.
(d) The estimated value of the donated edible agricultural
products, as provided by the donor.
(4) A qualified taxpayer shall attach the form prescribed
under subsection (3) to the annual return filed under this part on
which a credit under this section is claimed. If the amount of the
credit allowed under this section exceeds the tax liability of the
qualified taxpayer for the tax year, that portion of the credit
that exceeds the tax liability of the taxpayer for the tax year
shall not be refunded.
(5) As used in this section:
(a) "Donor" means a qualified taxpayer that donates edible
agricultural products to a hunger-relief charitable organization.
(b) "Edible agricultural products" means fruits, vegetables,
grains, beef, poultry, pork, fish, or any other edible product
raised or grown in this state that is intended for and fit for
human consumption. Edible agricultural products include any fruits,
vegetables, grains, beef, poultry, pork, fish, or any other edible
product raised or grown in this state and processed in this state
by the donor for human consumption.
(c) "Hunger-relief charitable organization" means a surplus
food collection and distribution program that is operated and
established to collect donated food for redistribution to persons
in need and that is recognized as exempt from federal taxation
under section 501(c)(3) of the internal revenue code. Hunger-relief
organization includes a shelter for homeless persons, food kitchen,
food bank, or other entity located in this state, the primary
purpose of which is to provide overnight accommodations, food, or
meals to persons who are indigent if a contribution to that entity
is tax deductible for the donor under the internal revenue code.
(d) "Qualified taxpayer" means a taxpayer that files a
schedule F with the taxpayer's federal income tax form 1040 for the
same tax year for which a credit is claimed under this section.
Sec. 677. (1) For tax years beginning on and after January 1,
2019, a qualified taxpayer that donates edible agricultural
products to a hunger-relief charitable organization located in this
state may claim a credit against the tax imposed by this part in an
amount equal to 50% of the aggregate value of the edible
agricultural products, as determined under subsection (2), that the
qualified taxpayer donated to a hunger-relief charitable
organization located in this state during the tax year or
$3,000.00, whichever is less.
(2) At the time of the donation, the qualified taxpayer shall
provide to the hunger-relief charitable organization the estimated
value of the donated edible agricultural products. The qualified
taxpayer shall determine the value of the donated edible
agricultural products as follows:
(a) If there was a previous sale of the edible agricultural
products to a buyer, the qualified taxpayer shall determine the
value of the donated edible agricultural products based on an
invoice or other statement identifying the price received by the
qualified taxpayer for those edible agricultural products of
comparable grade or quality.
(b) If there is no previous sale to a buyer, the qualified
taxpayer shall, on the date of the donation, determine the value of
the donated edible agricultural products based on the fair market
value as determined by average weekly regional produce auction
prices or United States Department of Agriculture prices for meat,
fish, and dairy products.
(3) The hunger-relief charitable organization shall provide to
the donor, on a form prescribed by the department, a signed and
dated statement containing, at a minimum, all of the following:
(a) The type and quantity of product donated.
(b) The name, address, and taxpayer identification number of
the donor.
(c) The name and address of the donee hunger-relief charitable
organization.
(d) The estimated value of the donated edible agricultural
products, as provided by the donor.
(4) A qualified taxpayer shall attach the form prescribed
under subsection (3) to the annual return filed under this part on
which a credit under this section is claimed. If the amount of the
credit allowed under this section exceeds the tax liability of the
qualified taxpayer for the tax year, that portion of the credit
that exceeds the tax liability of the taxpayer for the tax year
shall not be refunded.
(5) As used in this section:
(a) "Donor" means a qualified taxpayer that donates edible
agricultural products to a hunger-relief charitable organization.
(b) "Edible agricultural products" means fruits, vegetables,
grains, beef, poultry, pork, fish, or any other edible product
raised or grown in this state that is intended for and fit for
human consumption. Edible agricultural products include any fruits,
vegetables, grains, beef, poultry, pork, fish, or any other edible
product raised or grown in this state and processed in this state
by the donor for human consumption.
(c) "Hunger-relief charitable organization" means a surplus
food collection and distribution program that is operated and
established to collect donated food for redistribution to persons
in need and that is recognized as exempt from federal taxation
under section 501(c)(3) of the internal revenue code. Hunger-relief
organization includes a shelter for homeless persons, food kitchen,
food bank, or other entity located in this state, the primary
purpose of which is to provide overnight accommodations, food, or
meals to persons who are indigent if a contribution to that entity
is tax deductible for the donor under the internal revenue code.
(d) "Qualified taxpayer" means a taxpayer that reports the
income or loss from regular farming operations federal income tax
form 1120 for the same tax year for which a credit is claimed under
this section.
