A 9329: Enacts the "New York state food rescue tax credit act" in relation to providing a tax credit for certain businesses that donate food to eligible nonprofit food assistance organizations.

  
  STATE OF NEW YORK ________________________________________________________________________ 9329 2025-2026 Regular Sessions  IN ASSEMBLY December 10, 2025 ___________ Introduced by M. of A. SEPTIMO -- read once and referred to the Commit- tee on Ways and Means AN ACT to amend the tax law, in relation to enacting the "New York state food rescue tax credit act" The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "New York state food rescue tax credit act". 3 § 2. Legislative findings and intent. The legislature finds and 4 declares that: 5 1. New York generates over four million tons of food waste each year, 6 a significant portion of which is edible and suitable for donation. 7 2. Current tax law favors disposal over donation, as deductions for 8 waste disposal are often more financially advantageous than charitable 9 incentives for food donation. 10 3. Food insecurity affects more than 11 percent of New York house- 11 holds, a rate that has grown in recent years and is expected to rise 12 further due to federal reductions in SNAP benefits and potential 13 disruptions in federal nutrition programs. 14 4. It is therefore the intent of the legislature to establish a 15 refundable and transferable state tax credit to encourage businesses of 16 all sizes to donate surplus food and to offset the costs of storage, 17 transportation, and distribution. 18 5. This credit will strengthen New York's food assistance network, 19 reduce landfill waste and methane emissions, and ensure that nutritious 20 food reaches families in need instead of being discarded. 21 § 3. Section 210-B of the tax law is amended by adding a new subdivi- 22 sion 63 to read as follows: 23 63. Food rescue tax credit. (a) Definitions. For the purposes of this 24 subdivision, the following terms shall have the following meanings: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14136-02-5 
 A. 9329 2 1 (i) "Eligible nonprofit food assistance organization" means a nonpro- 2 fit entity recognized under section 501(c)(3) of the United States 3 internal revenue code, or similarly recognized organization, that 4 engages primarily in food rescue, recovery, or distribution to individ- 5 uals or families in need. 6 (ii) "Eligible taxpayer" includes food businesses, farmers, manufac- 7 turers, distributors, wholesalers, retailers, and any other business 8 entity engaged in the sale, manufacture, or distribution of food within 9 New York state. 10 (iii) "Qualified food donation" means any wholesome, edible food fit 11 for human consumption, including perishable and prepared foods, donated 12 in compliance with applicable state and federal food safety laws as 13 certified, measured, and accepted by a New York state charitable organ- 14 ization in good standing as defined by article seven-A of the executive 15 law. 16 (b) Allowance of credit. An eligible taxpayer subject to tax under 17 this article shall be allowed a credit against such tax in an amount 18 equal to: 19 (i) sixty-five percent of the fair market value of qualified food 20 donations made during the taxable year to an eligible nonprofit food 21 assistance organization; and 22 (ii) one hundred percent of documented transportation and storage 23 expenses directly attributable to such donations. 24 (c) Refundability and transferability. If the amount of credit allow- 25 able under this subdivision exceeds the eligible taxpayer's tax liabil- 26 ity for the taxable year, the excess shall be refundable. Alternatively, 27 an eligible taxpayer may transfer or assign the unused portion of such 28 credit to another eligible taxpayer, subject to regulations promulgated 29 by the commissioner. 30 (d) Limitations. (i) The aggregate amount of credits allowed under 31 this subdivision for all eligible taxpayers in any fiscal year shall not 32 exceed seventy-five million dollars statewide, unless increased by 33 appropriation. 34 (ii) The commissioner shall adopt rules and regulations governing 35 documentation, substantiation, transfer and application procedures to 36 ensure program integrity. 37 (iii) The department shall coordinate with the department of agricul- 38 ture and markets to verify the eligibility of nonprofit food recipients 39 and ensure donated food meets safety and quality standards. 40 § 4. Section 606 of the tax law is amended by adding a new subsection 41 (www) to read as follows: 42 (www) Food rescue tax credit. (1) Definitions. For the purposes of 43 this subsection, the following terms shall have the following meanings: 44 (A) "Eligible nonprofit food assistance organization" means a nonpro- 45 fit entity recognized under section 501(c)(3) of the United States 46 internal revenue code, or similarly recognized organization, in good 47 standing with the state of New York's charities bureau, that engages 48 primarily in food rescue, recovery, or distribution to individuals or 49 families in need. 50 (B) "Eligible taxpayer" includes food businesses, farmers, manufactur- 51 ers, distributors, wholesalers, retailers, and any other business entity 52 engaged in the sale, manufacture, or distribution of food within New 53 York state. 54 (C) "Qualified food donation" means any wholesome, edible food fit for 55 human consumption, including perishable and prepared foods, donated in 56 compliance with applicable state and federal food safety laws as certi- 
 A. 9329 3 1 fied, measured, and accepted by a New York state charitable organization 2 in good standing as defined by article seven-A of the executive law. 3 (2) Allowance of credit. An eligible taxpayer subject to tax under 4 this article shall be allowed a credit against such tax in an amount 5 equal to: 6 (A) sixty-five percent of the fair market value of qualified food 7 donations made during the taxable year to an eligible nonprofit food 8 assistance organization; and 9 (B) one hundred percent of documented transportation and storage 10 expenses directly attributable to such donations. 11 (3) Refundability and transferability. If the amount of credit allow- 12 able under this subsection exceeds the eligible taxpayer's tax liability 13 for the taxable year, the excess shall be refundable. Alternatively, an 14 eligible taxpayer may transfer or assign the unused portion of such 15 credit to another eligible taxpayer, subject to regulations promulgated 16 by the commissioner. 17 (4) Limitations. (A) The aggregate amount of credits allowed under 18 this subsection for all eligible taxpayers in any fiscal year shall not 19 exceed seventy-five million dollars statewide, unless increased by 20 appropriation. 21 (B) The commissioner shall adopt rules and regulations governing 22 documentation, substantiation, transfer and application procedures to 23 ensure program integrity. 24 (C) The department shall coordinate with the department of agriculture 25 and markets to verify the eligibility of nonprofit food recipients and 26 ensure donated food meets safety and quality standards. 27 (5) Partnerships and S corporations. In the case of a partnership or S 28 corporation, the credit provided for under this subsection shall be 29 passed through to partners, members, or shareholders in proportion to 30 their ownership interests in the entity. 31 § 5. The department of taxation and finance, in consultation with the 32 department of agriculture and markets, shall: 33 1. establish a standardized electronic reporting platform for busi- 34 nesses and eligible nonprofits to record accepted and usable donations, 35 transportation, and storage expenses eligible for the credit; 36 2. publish annual reports to the governor and the legislature includ- 37 ing: 38 (a) the total number of taxpayers claiming the credit; 39 (b) total food rescue tax credits claimed and amount refunded; 40 (c) pounds of food diverted from waste; 41 (d) estimated number of meals provided; and 42 (e) environmental and economic benefits achieved; and 43 3. develop an outreach and guidance program to inform eligible busi- 44 nesses and organizations of the availability of the food rescue tax 45 credit. 46 § 6. This act shall take effect on the first of January next succeed- 47 ing the date upon which it shall have become a law and shall apply to 48 taxable years beginning on or after such date.