HF 2046

as introduced - 90th Legislature (2017 - 2018) Posted on 03/02/2017 01:28pm

A bill for an act
relating to taxation; income; providing for a prepared food donation credit;
amending Minnesota Statutes 2016, sections 290.0131, by adding a subdivision;
290.0133, by adding a subdivision; 290.06, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 290.0131, is amended by adding a subdivision
to read:

new text begin Subd. 14. new text end

new text begin Prepared food donation. new text end

new text begin The amount of charitable contributions under section
170 of the Internal Revenue Code used to claim the credit under section 290.06, subdivision
37, is an addition.
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, 2016.
new text end

Sec. 2.

Minnesota Statutes 2016, section 290.0133, is amended by adding a subdivision
to read:

new text begin Subd. 15. new text end

new text begin Prepared food donation. new text end

new text begin The amount of charitable contributions under section
170 of the Internal Revenue Code used to claim the credit under section 290.06, subdivision
37, is an addition.
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, 2016.
new text end

Sec. 3.

Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to
read:

new text begin Subd. 37. new text end

new text begin Prepared food donation credit. new text end

new text begin (a) A qualifying taxpayer is allowed a credit
against the tax imposed by this chapter equal to 20 percent of the taxpayer's eligible charitable
food donation. The credit may not exceed the taxpayer's liability for tax and may not be
carried forward to any other taxable year.
new text end

new text begin (b) For purposes of this subdivision, the following terms have the meanings given:
new text end

new text begin (1) "eligible charitable food donation" means a contribution of prepared food allowable
as a charitable deduction for the taxable year under section 170(a) of the Internal Revenue
Code, subject to the limitations of section 170(b) of the Internal Revenue Code, and
determined without regard to whether or not the taxpayer itemizes deductions;
new text end

new text begin (2) "prepared food" means food that meets all quality and labeling standards imposed
by federal, state, and local laws and regulations even though the food may not be readily
marketable due to appearance, age, freshness, grade, size, surplus, or other conditions, and
includes:
new text end

new text begin (i) food that is cooked or heated by the qualifying taxpayer;
new text end

new text begin (ii) two or more ingredients mixed together to be eaten as a single item; and
new text end

new text begin (iii) any ingredients supplied for ingestion or chewing by humans that are consumed for
their taste or nutritional value; and
new text end

new text begin (3) "qualifying taxpayer" means an individual or entity that makes a charitable food
donation in Minnesota and is engaged in a trade or business that includes regularly selling
prepared food.
new text end

new text begin (c) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under subdivision 2c, paragraph (e).
new text end

new text begin (d) Credits allowed 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 income for the taxable year.
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, 2016.
new text end