Modifies provisions relating to a tax credit for donated food

EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
SECOND REGULAR SESSION
SENATE BILL NO. 1082
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR BURGER.
5426S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 135.647, RSMo, and to enact in lieu thereof one new section relating to a tax
credit for donated food.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 135.647, RSMo, is repealed and one new 1
section enacted in lieu thereof, to be known as section 135.647, 2
to read as follows:3
135.647. 1. As used in this section, the following 1
terms shall mean: 2
(1) "Food bank", any food bank that: 3
(a) Is exempt from taxation under section 501(c)(3) of 4
the Internal Revenue Code of 1986, as amended; 5
(b) Maintains an established operation involving the 6
provision of food or edible commodities, or the products of 7
food or edible commodities, to food pantries, soup kitchens, 8
hunger relief centers, or other food or feeding centers 9
that, as an integral part of their normal activities, 10
provide meals or food to needy persons; and 11
(c) Is located in the state of Missouri; 12
(2) "Local food pantry", any food pantry that is: 13
(a) Exempt from taxation under section 501(c)(3) of 14
the Internal Revenue Code of 1986, as amended; and 15
(b) Distributing emergency food supplies to Missouri 16
low-income people who would otherwise not have access to 17
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food supplies in the area in which the taxpayer claiming the 18
tax credit under this section resides; 19
[(2)] (3) "Local homeless shelter", any homeless 20
shelter that is: 21
(a) Exempt from taxation under Section 501(c)(3) of 22
the Internal Revenue Code of 1986, as amended; and 23
(b) Providing temporary living arrangements, in the 24
area in which the taxpayer claiming the tax credit under 25
this section resides, for individuals and families who 26
otherwise lack a fixed, regular, and adequate nighttime 27
residence and lack the resources or support networks to 28
obtain other permanent housing; 29
[(3)] (4) "Local soup kitchen", any soup kitchen that 30
is: 31
(a) Exempt from taxation under section 501(c)(3) of 32
the Internal Revenue Code of 1986, as amended; and 33
(b) Providing prepared meals through an established 34
congregate feeding operation to needy, low-income persons 35
including, but not limited to, homeless persons in the area 36
in which the taxpayer claiming the tax credit under this 37
section resides; 38
[(4)] (5) "Taxpayer", an individual, a firm, a partner 39
in a firm, corporation, or a shareholder in an S corporation 40
doing business in this state and subject to the state income 41
tax imposed by chapter 143, excluding withholding tax 42
imposed by sections 143.191 to 143.265. 43
2. (1) Beginning on March 29, 2013, any donation of 44
cash or food made to a local food pantry on or after January 45
1, 2013, unless such food is donated after the food's 46
expiration date, shall be eligible for tax credits as 47
provided by this section. 48
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(2) Beginning on August 28, 2018, any donation of cash 49
or food made to a local soup kitchen or local homeless 50
shelter on or after January 1, 2018, unless such food is 51
donated after the food's expiration date, shall be eligible 52
for a tax credit as provided under this section. 53
(3) Beginning on August 28, 2026, any donation of cash 54
or food made to a food bank on or after January 1, 2026, 55
unless such food is donated after the food's expiration 56
date, shall be eligible for a tax credit as provided under 57
this section. 58
(4) For all tax years ending on or before December 31, 59
2025, any taxpayer who makes a donation that is eligible for 60
a tax credit under this section shall be allowed a credit 61
against the tax otherwise due under chapter 143, excluding 62
withholding tax imposed by sections 143.191 to 143.265, in 63
an amount equal to fifty percent of the value of the 64
donations made to the extent such amounts that have been 65
subtracted from federal adjusted gross income or federal 66
taxable income are added back in the determination of 67
Missouri adjusted gross income or Missouri taxable income 68
before the credit can be claimed. For all tax years 69
beginning on or after January 1, 2026, any taxpayer who 70
makes a donation that is eligible for a tax credit under 71
this section shall be allowed a credit against the tax 72
otherwise due under chapter 143, excluding withholding tax 73
imposed by sections 143.191 to 143.265, in an amount up to 74
seventy percent of the value of the donations made to the 75
extent such amounts that have been subtracted from federal 76
adjusted gross income or federal taxable income are added 77
back in the determination of Missouri adjusted gross income 78
or Missouri taxable income before the credit can be 79
claimed. Each taxpayer claiming a tax credit under this 80
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section shall file an affidavit with the income tax return 81
verifying the amount of their contributions. The amount of 82
the tax credit claimed shall not exceed the amount of the 83
taxpayer's state tax liability for the tax year that the 84
credit is claimed and shall not exceed two thousand five 85
hundred dollars per taxpayer claiming the credit. Any 86
amount of credit that the taxpayer is prohibited by this 87
section from claiming in a tax year shall not be refundable, 88
but may be carried forward to any of the taxpayer's three 89
subsequent tax years. No tax credit granted under this 90
section shall be transferred, sold, or assigned. No 91
taxpayer shall be eligible to receive a credit pursuant to 92
this section if such taxpayer employs persons who are not 93
authorized to work in the United States under federal law. 94
No taxpayer shall be able to claim more than one credit 95
under this section for a single donation. 96
3. (1) For all tax years ending on or before December 97
31, 2025, the cumulative amount of tax credits under this 98
section which may be allocated to all taxpayers contributing 99
to a local food pantry, local soup kitchen, or local 100
homeless shelter in any one fiscal year shall not exceed one 101
million seven hundred fifty thousand dollars. For all tax 102
years beginning on or after January 1, 2026, the cumulative 103
amount of tax credits under this section which may be 104
allocated to all taxpayers contributing to a food bank, 105
local food pantry, local soup kitchen, or local homeless 106
shelter in any one fiscal year shall not exceed three 107
million five hundred thousand dollars. The director of 108
revenue shall establish a procedure by which the cumulative 109
amount of tax credits is apportioned among all taxpayers 110
claiming the credit by April fifteenth of the fiscal year in 111
which the tax credit is claimed. To the maximum extent 112
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possible, the director of revenue shall establish the 113
procedure described in this subsection in such a manner as 114
to ensure that taxpayers can claim all the tax credits 115
possible up to the cumulative amount of tax credits 116
available for the fiscal year. 117
(2) In the event a full or partial credit denial, due 118
to the cumulative maximum amount of credits being claimed 119
for the fiscal year, causes a tax balance due to be owed to 120
the state by the taxpayer, the taxpayer shall not be held 121
liable for any addition to tax, penalty, or interest on that 122
tax balance due, provided the balance is paid, or approved 123
payment arrangements have been made, within sixty days from 124
issuance of the notice of credit denial. 125
4. Any food bank, local food pantry, local soup 126
kitchen, or local homeless shelter may accept or reject any 127
donation of food made under this section for any reason. 128
For purposes of this section, any donations of food accepted 129
by a food bank, local food pantry, local soup kitchen, or 130
local homeless shelter shall be valued at fair market value, 131
or at wholesale value if the taxpayer making the donation of 132
food is a retail grocery store, food broker, wholesaler, or 133
restaurant. 134
5. The department of revenue shall promulgate rules to 135
implement the provisions of this section. Any rule or 136
portion of a rule, as that term is defined in section 137
536.010, that is created under the authority delegated in 138
this section shall become effective only if it complies with 139
and is subject to all of the provisions of chapter 536 and, 140
if applicable, section 536.028. This section and chapter 141
536 are nonseverable and if any of the powers vested with 142
the general assembly pursuant to chapter 536 to review, to 143
delay the effective date, or to disapprove and annul a rule 144
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are subsequently held unconstitutional, then the grant of 145
rulemaking authority and any rule proposed or adopted after 146
August 28, 2007, shall be invalid and void. 147
6. Under section 23.253 of the Missouri sunset act: 148
(1) The program authorized under this section shall 149
[be reauthorized as of August 28, 2018, and shall expire on 150
December 31, 2026, unless reauthorized by the general 151
assembly; and] automatically sunset on December 31, 2032, 152
unless reauthorized by an act of the general assembly; 153
(2) This section shall terminate on September first of 154
the calendar year immediately following the calendar year in 155
which the program authorized [under] pursuant to this 156
section is sunset; and 157
(3) The provisions of this subsection shall not be 158
construed to [limit or in any way impair a taxpayer's 159
ability to redeem tax credits authorized on or before the 160
date the program authorized under this section expires] 161
impair or impede the state's fulfillment of any obligations, 162
including the authorization, issuance, or redemption of tax 163
credits, incurred pursuant to this section prior to the date 164
the program authorized pursuant to this section is sunset. 165
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