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Farmers’ food donations now eligible for state tax credit
Farmers’ food donations now eligible for state tax credit
Food that farmers donate to organizations serving the needy will now qualify for a state tax credit worth 25 percent of their donation’s market value.
Gov. Andrew M. Cuomo announced the new refundable tax credit this week in an effort to both boost the agriculture industry and address hunger. New York farmers donated more than 9 million pounds of food in 2017 to food pantries and emergency feeding programs, according to the NY Farm Bureau. Cuomo predicted donations would increase because of the tax benefit.
“Refunding farmers for their generous food donations not only supports the state’s agricultural economy, but encourages more New Yorkers to help end hunger in our communities once and for all,” Cuomo said.
He said the program will save New York farmers $10 million a year, as farmers will be able to earn up to $5,000 each in tax credit. If the credit is larger than tax owed, the farmer would receive a refund. No state tax credit was available before this, though farmers’ donations could have been eligible for a federal tax benefit.
The state tax credit was recommended by Cuomo’s Anti-Hunger Task Force to help compensate farmers for costs associated with giving food away, such as harvesting, packaging and transporting the food. Eligible products include fresh fruits, vegetables, meats and eggs produced on New York farms. Donations starting at the beginning of the year will be eligible. The food must meet minimum quality standards.
State Sen. Patty Ritchie, chair of the Senate Committee on Agriculture, said, “New York State’s hardworking farmers are … some of the most generous people in our entire state. Most of our farmers are already making these vital donations of farm fresh fruits and vegetables to food banks and pantries across the state. In providing them this credit, we are not only rewarding them for their kindness, but we are also investing in our state’s future.”
Added David Fisher, president of the NY Farm Bureau, “This has been a priority issue for our organization’s members who routinely donate to their regional food banks and local pantries. The credit will help offset the costs of picking, packing and transporting the food to the donation centers, while also increasing access of fresh, local food to New Yorkers in need.”
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