An Act To Support Maine Farms and Alleviate Hunger

Sec. 1. 36 MRSA §5219-II  is enacted to read:

§ 5219-II.  Farm donation credit

A person engaged in commercial agricultural production, as defined in section 2013, subsection 1, paragraph A, may claim a credit against the taxes imposed by this Part equal to the fair market value up to $5,000, as determined under Section 170(e) of the Code, of agricultural products donated to a food bank, food kitchen or other organization that is exempt under Section 501(c) of the Code or incorporated under Title 13-B and that provides food to low-income individuals without charging a fee for the food or requiring any other type of compensation from the low-income individual. For purposes of this section, "low-income individual" means a person who is a member of a lower income household as defined in Title 30-A, section 5002, subsection 11. A taxpayer may not claim a credit under this section if the taxpayer claims a deduction from federal income tax for a charitable contribution under Section 170 of the Code for the same donation. This credit may not reduce the tax otherwise due under this Part to less than zero.

This section is repealed December 31, 2017.

Sec. 2. Application. This Act applies to tax years beginning on or after January 1, 2013 and before January 1, 2018.

SUMMARY

This bill provides an income tax credit for a donation of agricultural products with a fair market value of up to $5,000 made by a person engaged in commercial agricultural production to a nonprofit corporation that provides food to low-income individuals and that does not charge a fee for the food or require any other type of compensation. The credit is repealed December 31, 2017.