STATE OF NEW JERSEY
219th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2020 SESSION
Sponsored by:
Assemblyman RAJ MUKHERJI
District 33 (Hudson)
Assemblyman DANIEL R. BENSON
District 14 (Mercer and Middlesex)
Assemblyman JAY WEBBER
District 26 (Essex, Morris and Passaic)
Co-Sponsored by:
Assemblywoman Chaparro, Assemblyman Verrelli, Assemblywoman Quijano and Assemblyman Danielsen
SYNOPSIS
Allows NJ gross income tax deduction for charitable contributions of food made from business inventory.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act allowing a charitable contribution tax deduction under the New Jersey gross income tax for contributions of food made from business inventory and 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 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.
STATEMENT
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 is required to be made to an organization that is determined by the Internal Revenue Service to be an organization eligible to receive tax-deductible charitable contributions.