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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9329
SPONSOR: Septimo TITLE OF BILL:
An act to amend the tax law, in relation to enacting the "New York state
food rescue tax credit act"
PURPOSE OR GENERAL IDEA OF BILL:
To create a refundable and transferable state income tax credit that
incentivizes food businesses including farms, grocers, restaurants,
distributors, and manufacturers to donate surplus food to qualified
nonprofit food assistance organizations, thereby reducing waste, fight-
ing hunger, and strengthening New York's food security infrastructure.
SUMMARY OF PROVISIONS:
1. Section 1 Establishes the short title: "New York State Food Rescue
Tax Credit Act."
2. Section 2 States legislative findings and intent, recognizing New
York's dual crises of food waste and food insecurity, and the need to
make donation more financially viable than disposal.
3. Section 3 Amends Tax Law 210-B by adding a new subdivision creating
the Food Rescue Tax Credit for corporate taxpayers.
* Provides a credit equal to sixty-five percent (65%) of the fair market
value of qualified food donations.
*Provides an additional 100% credit for transportation and storage costs
related to food donations.
*Makes the credit refundable and transferable, ensuring participation by
small and mid-sized businesses.
*Caps the aggregate, annual statewide credit at $75 million, subject to
appropriation.
4. Section 4 Amends Tax Law 606 to extend an equivalent credit to indi-
vidual and pass-through entities (partnerships and S corporations).
5. Section 5 Requires the Department of Taxation and Finance, in consul-
tation with the Department of Agriculture and Markets, to:
*Develop standardized reporting tools;
*Track donations and credit usage; and
*Publish annual reports detailing pounds of food diverted, meals
provided, and environmental benefits.
6. Section 6 Provides that the act shall take effect January 1 following
enactment, and apply to taxable years thereafter.
JUSTIFICATION:
New York discards more than four million tons of food each year, a
significant portion of which is edible and suitable for donation. At the
same time, over 11 percent of households and a higher percentage of
households with children experience food insecurity.
Current tax law makes it more financially advantageous to dispose of
surplus food than to donate it, especially for small and mid-sized busi-
nesses that lack resources to absorb donation logistics costs. This
bill reverses that incentive by making donation cheaper than disposal,
thereby redirecting fresh, nutritious food to New Yorkers in need while
supporting local businesses and reducing landfill waste.
The New York State Food Rescue Tax Credit aligns environmental, econom-
ic, and social goals:
* For families, it increases access to healthy food.
* For businesses, it reduces costs and waste.
* For the environment, it reduces methane emissions from landfills one
of the state's most cost-effective climate interventions.
Modeled on Pennsylvania's Neighborhood Assistance Program (NAP) and
Charitable Food Program (CFP), which offer a 65% tax credit and return
$62 in social benefit for every $1 invested, this credit would position
New York as a national leader in sustainable, market-driven hunger
solutions.
With federal SNAP cuts and the risk of government shutdowns threatening
food assistance programs, New York must act decisively to ensure food
reaches people, not landfills.
PRIOR LEGISLATIVE HISTORY:
New Bill - Introduced in the 2025 Legislative Session.
FISCAL IMPLICATIONS:
The statewide annual cap is set at $75 million, with projected returns
exceeding $5 billion in combined food access, environmental, and econom-
ic benefits. The program is expected to be fiscally neutral or positive
due to downstream savings in waste management, emergency food aid, and
healthcare costs.
EFFECTIVE DATE:
This act shall take effect January 1 following enactment and apply to
taxable years beginning on or after such date.
