Senator RAYMOND J. LESNIAK
District 20 (Union)
Senator STEVEN V. OROHO
District 24 (Morris, Sussex and Warren)
Assemblyman RAJ MUKHERJI
District 33 (Hudson)
Assemblyman DANIEL R. BENSON
District 14 (Mercer and Middlesex)
Assemblywoman JOANN DOWNEY
District 11 (Monmouth)
Senators Beach, Gordon and Assemblyman O'Scanlon
Allows NJ gross income tax deduction for charitable contributions of food made from business inventory.
CURRENT VERSION OF TEXT
An Act allowing a charitable contribution tax deduction under the New Jersey gross income tax for contributions of food made from business inventory, supplementing chapter 3 of Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. A taxpayer shall be allowed to deduct from gross income the amount of charitable contributions of food made in the taxable year equal to the amount which would have been allowed to the taxpayer for the federal taxable year under the provisions of the paragraph (3) of subsection (e) of section 170 of the federal Internal Revenue Code (26 U.S.C. s.170) in effect on December 31, 2013.
2. This act shall take effect immediately and apply to taxable years beginning on or after the January 1 next following enactment.
This bill allows gross income tax deductions for charitable contributions of food made in the tax year from business inventory, as allowed under paragraph (3) of subsection (e) of section 170 of the federal Internal Revenue Code of 1986. The deduction mirrors the federal income tax deduction for contributions of food made from business inventory and is allowed regardless of whether the federal itemized deduction is taken by the taxpayer.
The deduction is an itemized deduction for charitable contributions of food, where “food" is “apparently wholesome food.” Under federal law, “apparently wholesome food” means “food that meets all quality and labeling standards imposed by Federal, State, and local laws and regulations even though the food may not be readily marketable due to appearance, age, freshness, grade, size, surplus, or other conditions.” The contribution must be made to an organization that is determined by the Internal Revenue Service to be an organization eligible to receive tax-deductible charitable contributions.
This bill recognizes and rewards charitable contributions of food made to organizations that serve the underprivileged. Over one million people living in New Jersey lack consistent access to enough food for an active, healthy life for all household members, and have only limited or uncertain availability of nutritionally adequate foods. This new tax deduction will encourage philanthropic gifts of food to deserving organizations and help reduce the number of those who needlessly go hungry in this State.