Food businesses could claim tax credits for donated meals

State corporate and personal income tax filers could claim the credit. Prepared-food sales must make up at least half of the claimant's federal gross income; corporations, partnerships, and individuals may qualify. Each meal must meet federal dietary guidelines and be given, without anything in return, to a federally tax-exempt nonprofit program in New York that accepts or distributes prepared meals. Unused credits may be refunded without interest; corporate credits cannot lower tax below the fixed minimum. The credits would apply to tax years beginning on or after January 1, 2027.

Claimants would have to get and keep proof of their meal donations. These requirements apply to food businesses claiming either state tax credit. A standard receipt must give the nonprofit's name, GPS location and time, meal details, a signature, photos, both tax ID numbers, and the current local health rating. For corporate tax, an acknowledgment letter needs only the nonprofit name, location and time, and meal details; for personal income tax, it needs every listed item.

A qualifying city could offer the credit against its personal income tax. This authority applies only to a city with at least one million residents acting through its local legislature. The city could choose whether to adopt or change local laws and rules offering the credit. This authority would take effect immediately if the bill becomes law.

State agriculture officials would promote local ingredients for meals donated under the credit. The provision covers eligible food businesses preparing meals that qualify for the state tax credits. Officials would promote local buying only when practical and could provide guidance and resources for finding ingredients from within the state. This provision would take effect immediately if the bill becomes law.