Amd §§210-B & 606, Tax L; add §§29 & 30, Ag & Mkts L
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: A9329A
SPONSOR: Septimo TITLE OF BILL:
An act to amend the tax law and the agriculture and markets 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:
Section one establishes the short title of this act to be known and
cited as "New York State Food Rescue Tax Credit Act."
Section two provides the legislative findings and intent, declaring New
York's dual crises of food waste and insecurity, as well as the need to
make donations more financially viable than disposal.
Section three amends section 210-B of the Tax Law, as it relates to
franchise tax credits for business corporations, by adding a new subdi-
vision 63 which would:
*Define "eligible nonprofit food assistance organization," "eligible
taxpayer," and "qualified food donation," "good food nutrition stand-
ards," and "qualified food donation."
*Provide the allowance of credit to be equal to 65% of the fair-market
value of a qualified food donation.
*Allows for an additional 100% credit for transportation and storage
costs related to food donations.
*Allows credit to be refundable and transferable to ensure participation
by small and mid-sized businesses.
*Caps the aggregate, annual statewide credit at $75 million, subject to
appropriation.
*Directs the Commissioner of Taxation and Finance to adopt rules, regu-
lations, and procedures to ensure program integrity and to coordinate
with the Department of Agriculture and
*Markets to verify the eligibility of nonprofit food recipients and the
quality of donated food.
*Directs the Department of Taxation to coordinate with the Department of
Agriculture and Markets to verify donated food meets safety and quality
standards, including a quality certification form to be completed by the
receiving eligible food rescue organization or qualified food recovery
partner.
Section four amends section 606 of the Tax Law, as it relates to credits
against tax, under Article 22 of Personal Income Tax, by adding a new
subsection (www) to create a credit equivalent to the one created in
section three and extend eligibility of such credit to individuals,
partnerships, and S corporations.
Section five amends the Agriculture and Markets Law by adding two new
sections 29 and 30, to create a statewide food rescue training program
and a statewide food rescue data dashboard within the Department of
Agriculture and Markets in coordination with the Department of Taxation
and Finance.
Section six would require the Department of Taxation and Finance, in
consultation with the Department of Agriculture and Markets, to estab-
lish a standardized reporting platform, publish an annual report, and
develop outreach and program guidance to inform eligible businesses and
organizations of the food rescue tax credit.
Section seven provides an effective date.
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 the logistical costs of donating
surplus food. This bill would reverse 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 caused by food waste
in landfills, one of the state's most cost-effective climate inter-
ventions.
Drawing on Pennsylvania's Neighborhood Assistance Program (NAP) and
Charitable Food Program, which offer a 65% tax credit and yield $62 in
social benefit for every $1 invested, this proposal 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. 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.
