Tax Credit Expected to Increase Donations to Emergency Food Programs Across the Stat
Will Boost Agriculture Industry and Save New York Farmers $10 Million Annually
Builds on Governor’s Commitment to Fight Hunger in New York State
Governor Andrew M. Cuomo today announced New York farmers are eligible to receive a tax credit for qualifying food donations made to food banks and other emergency food programs beginning January 1, 2018. The tax credit is expected to save farmers a total of $10 million annually. According to the New York Farm Bureau, farmers across the state donated more than nine million pounds of food in 2017, which helped provide more than seven million meals to New Yorkers in need.
“This administration is committed to stomping out hunger in every corner of New York, and by establishing an incentive to increase access to farm-fresh products, we are one step closer to this goal,” Governor Cuomo said. “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.”
Following a recommendation of Governor Cuomo’s Anti-Hunger Task Force, the tax credit was enacted to compensate farmers for costs associated with harvesting, packaging, and distributing local products to eligible food pantries, food banks and other emergency food programs across the state. Increased donations will help meet the growing demand for fresh, healthful foods in underserved communities across New York.
The tax credit, which is supported by the New York State Council on Hunger and Food Policy, is a refundable credit equal to 25 percent of the fair market value of qualified donations up to $5,000. Eligible donations include fresh fruits and vegetables grown or produced in New York State and provided to emergency food programs that qualify for tax-exempt status. To claim the credit, the taxpayer must receive proof of the donation in the form of a receipt or written acknowledgment from the eligible food program.
A fact sheet on eligibility requirements for the tax credit is available here.
State Agriculture Commissioner Richard Ball said, “Our farmers aren’t just great at growing food, every year they are among the leading donors to food banks, food pantries and similar organizations. Their donations provide fresh, healthy fruits and vegetables to millions of New York families that may otherwise go without. At the Governor’s direction, the State has worked hard to develop this tax credit to reward farmers for their generosity and spur economic growth in the agricultural industry, and to feed even more New Yorkers who need it most.”
New York Farm Bureau President David Fisher said, “New York Farm Bureau is excited to see the rollout of the Farm to Food Bank Tax Credit. 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. We appreciate Governor Cuomo and his agency staff’s efforts to make this day a reality.”
This tax credit builds on Governor Cuomo’s commitment to end hunger in New York State. In the 2018 State of the State address, the Governor proposed a No Student Goes Hungry Program to ensure students of all ages, backgrounds and financial situations have access to healthy, locally-sourced meals. Through his proposal, the state would institute a ban on lunch shaming, require certain schools to serve breakfast ‘after the bell,’ and double the state’s investment in the Farm-to-School program.
The Governor also proposed a more than 300 percent increase in school lunch reimbursements for schools that purchase at least 30 percent ingredients from New York farms. To ensure the availability of healthy food options on college campuses, the Governor proposed a requirement for all SUNY and CUNY schools to either provide physical food pantries on campus, or enable students to receive food through a separate arrangement that is stigma-free.
In 2016, the Governor created the New York State Council on Hunger and Food Policy, to establish a permanent focus on fighting hunger in the state. In addition, the state has expanded the eligibility requirements for the Supplemental Nutrition Assistance Program and extended the Hunger Prevention and Nutrition Assistance Program through 2020. In addition, the state funds several programs to help families-in-need to buy fresh produce at local farmers’ markets.
