Today's Law As Amended


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AB-287 Income and bank and corporation taxes: credits: donation of agricultural products.(1999-2000)



As Amends the Law Today


SECTION 1.

 Section 17053.20 is added to the Revenue and Taxation Code, to read:

17053.20.
 (a) There shall be allowed as a credit against the “net tax,” as defined by Section 17039, an amount equal to 10 percent of the fair market value at wholesale of agricultural products donated by a taxpayer during the taxable year to a nonprofit charitable organization or food bank.
(b) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following year, and succeeding years if necessary, until the credit has been exhausted.
(c) A taxpayer shall provide a receipt from the recipient organization with the type and quantity of product donated, name or names of the donor or donors, and the name and address of the recipient.
(d) No taxpayer shall be allowed to claim the credit pursuant to this section and claim a deduction from his or her taxes for charitable purposes for amounts donated pursuant to subdivision (a).
(e) This section shall remain in effect only until December 31, 2005, and as of that date is repealed unless a later enacted statute deletes or extends that date.

SEC. 2.

 Section 23620 is added to the Revenue and Taxation Code, to read:

23620.
 (a) There shall be allowed as a credit against the “tax,” as defined by Section 23036, an amount equal to 10 percent of the fair market value at wholesale of agricultural products donated by a taxpayer during the income year to a nonprofit charitable organization or food bank.
(b) In the case where the credit allowed by this section exceeds the “tax,” the excess may be carried over to reduce the “tax” in the following year, and succeeding years if necessary, until the credit has been exhausted.
(c) A taxpayer shall provide a receipt from the recipient organization with the type and quantity of product donated, name or names of the donor or donors, and the name and address of the recipient.
(d) No taxpayer shall be allowed to claim the credit pursuant to this section and claim a deduction from its taxes for charitable purposes for amount donated pursuant to subdivision (a).
(e) This section shall remain in effect only until December 31, 2005, and as of that date is repealed, unless a later enacted statute deletes or extends that date.
SEC. 3.
 The Franchise Tax Board shall report to the Legislature on or before November 30, 2004, on the number of credits claimed annually pursuant to Sections 17053.20 and 23620 of the Revenue and Taxation Code.
SEC. 4.
 This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.