Read the full stored bill text
A bill for an act
relating to taxation; income and corporate franchise; establishing a credit for
farmers who donate food to a food shelf; proposing coding for new law in
Minnesota Statutes, chapter 290.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
new text begin
[290.0651] CREDIT FOR FARMERS MAKING DONATIONS OF FOOD.
new text end
new text begin
Subdivision 1.
new text end
new text begin
Definitions.
new text end
new text begin
(a) For the purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Farmer" means a taxpayer engaged in the business of farming, as defined in Code
of Federal Regulations, title 26, section 1.175-3, and who is eligible to own farmland under
section 500.24.
new text end
new text begin
(c) "Food shelf" means an organization that meets the requirement to be considered a
food shelf under section 124D.1191.
new text end
new text begin
(d) "Qualifying donation" means an in-kind charitable donation of food produced by
the farmer that is eligible for the deduction under section 170 of the Internal Revenue Code.
new text end
new text begin
Subd. 2.
new text end
new text begin
Credit allowed.
new text end
new text begin
(a) A farmer is allowed a credit against the tax imposed under
this chapter equal to 85 percent of qualifying donations to a food shelf.
new text end
new text begin
(b) For the purposes of determining the monetary value of a qualifying donation, the
rules for determining the monetary value of a charitable contribution under section 170 of
the Internal Revenue Code apply.
new text end
new text begin
Subd. 3.
new text end
new text begin
Credit limitation.
new text end
new text begin
The credit under this section is limited to 50 percent of the
real property taxes paid by the taxpayer during the taxable year.
new text end
new text begin
Subd. 4.
new text end
new text begin
Denial of double benefit.
new text end
new text begin
The qualifying donation used to calculate the credit
under this section may not be used to calculate any other state income tax deduction or
credit allowed by law.
new text end
new text begin
Subd. 5.
new text end
new text begin
Credit nonrefundable; carryover.
new text end
new text begin
If the amount of the credit allowed under
this section for any taxable year exceeds the taxpayer's liability for tax under this chapter,
the excess is a credit carryover to each of the five succeeding taxable years. The entire
amount of the excess unused credit for the taxable year must be carried first to the earliest
of the taxable years to which the credit may be carried and then to each successive year to
which the credit may be carried. The amount of the unused credit that may be added under
this subdivision must not exceed the taxpayer's liability for tax less the credit for the taxable
year.
new text end
new text begin
Subd. 6.
new text end
new text begin
Partnerships; multiple owners.
new text end
new text begin
Credits granted or transferred to a partnership,
a limited liability company taxed as a partnership, an S corporation, or multiple owners of
property are passed through to the partners, members, shareholders, or owners, respectively,
pro rata to each partner, member, shareholder, or owner based on their share of the entity's
assets or as specially allocated in their organizational documents or any other executed
agreement, as of the last day of the taxable year.
new text end
new text begin
Subd. 7.
new text end
new text begin
Nonresidents; part-year residents.
new text end
new text begin
For a nonresident or a part-year resident,
the credit under this section must be allocated based on the percentage calculated under
section 290.06, subdivision 2c, paragraph (e).
new text end
new text begin
EFFECTIVE DATE.
new text end
new text begin
This section is effective for taxable years beginning after December
31, 2025.
new text end