Income taxation: credits: voluntary contributions: food bank donations.

Plain English Breakdown

The bill summary and digest do not provide specific details on how the voluntary contributions will be used beyond supporting emergency food funds.

Extending Tax Credits and Voluntary Contributions for Food Bank Donations

This legislation extends tax credits for donating food to food banks until January 1, 2032, and the reporting requirement until January 1, 2031. It also extends voluntary contributions to support emergency food funds until January 1, 2037.

What This Bill Does

• Extends the tax credit for donating fresh fruits, vegetables, raw agricultural products, or processed foods to food banks until January 1, 2032.
• Requires the Franchise Tax Board to report on how these tax credits are used until January 1, 2031.
• Allows individuals to contribute more than their income tax for emergency food funds until January 1, 2037.

Who It Names or Affects

• Taxpayers who donate food to food banks
• Individuals contributing extra money to support emergency food funds

Terms To Know

tax credit

A reduction in the amount of tax a person or business has to pay.

voluntary contribution fund

A special fund that people can choose to donate extra money to when they file their taxes.

Limits and Unknowns

• The bill does not specify how much the voluntary contributions will be used for beyond supporting emergency food funds.
• It is unclear what happens after January 1, 2037, regarding the voluntary contribution fund.

Official Summary Text

SB 881, as introduced, McNerney.
Income taxation: credits: voluntary contributions: food bank donations.
(1) The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including, for taxable years beginning on or after January 1, 2017, and before January 1, 2027, a credit for qualified taxpayers in an amount equal to 15% of the qualified value of fresh fruits or vegetables and specified raw agricultural products or processed foods donated to a food bank.
This bill would extend the authorization for those tax credits for taxable years beginning before January 1, 2032.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. For purposes of complying with these
requirements, existing law requires the Franchise Tax Board to submit a report to the Legislature regarding the utilization of the above-described credit on or before December 1 of each year until January 1, 2026.
This bill would extend that reporting requirement to January 1, 2031. The bill would make related findings and declarations.
(2) Existing law authorizes individuals to contribute amounts in excess of their personal income tax liability for the support of specified funds, including the Emergency Food for Families Voluntary Tax Contribution Fund. Under existing law, the provisions governing that voluntary contribution fund are in effect until January 1, 2026, and are repealed as of December 1 of that year.
This bill would extend the provisions that apply to the Emergency Food for Families Voluntary Tax Contribution Fund until January 1, 2037, as
provided. The bill would additionally make a nonsubstantive change reflective of existing law. By extending the term of a continuously appropriated fund, the bill would make an appropriation.

Current Bill Text

Download Bill PDF