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141.392 Tax credit for donated edible agricultural products.
(1)
(2)
(3)
For purposes of this section:
(a) "Donor" means a qualified taxpayer who provides free of fee or charge
edible agricultural products to a nonprofit food program operating in
Kentucky;
(b) "Edible agricultural products" means fruits, vegetables, beef, poultry,
pork, fish, or any other edible product raised or grown in Kentucky that is
intended for and fit for human consumption;
(c) "Nonprofit food program" means a surplus food collection and distribution
program operated and established to collect donated food for
redistribution to persons in need and is recognized as exempt from
federal taxation under Section 501(c)(3) of the Internal Revenue Code;
and
(d) "Qualified taxpayer" means a person responsible for and deriving income
from:
1.
Growing fruits, vegetables, or other edible agricultural products; or
2.
Raising beef, poultry, pork, fish, or other edible agricultural products.
(a) For taxable years beginning on or after January 1, 2014, but before
January 1, 2018, any donor shall be allowed a nonrefundable credit
against the tax imposed by KRS 141.020, or 141.040 and 141.0401, with
the ordering of credits as provided in KRS 141.0205, in the amount equal
to ten percent (10%) of the value of the donated edible agricultural
products as determined under subsection (3)(b) of this section.
(b) A qualified taxpayer that is a pass-through entity not subject to the tax
imposed by KRS 141.040 and that has tax credits approved under this
section shall apply the credits against the limited liability entity tax
imposed by KRS 141.0401, and shall also distribute the amount of the
approved tax credits to each partner, member, or shareholder based on
the partner's, member's, or shareholder's distributive share of income as
determined for the year during which the tax credits are approved, with
the ordering of credits as provided in KRS 141.0205.
(a) At the time of the donation, the donor shall provide to the nonprofit food
program the estimated value of the donated edible agricultural products
as determined under paragraph (b) of this subsection. The nonprofit food
program shall provide to the donor, on a form prescribed by the
department, a signed and dated statement containing, at a minimum:
1.
The type and quantity of product donated;
2.
The name, address, and taxpayer identification number of the donor
or donors;
3.
The name and address of the donee nonprofit food program; and
4.
The estimated value of the donated edible agricultural products, as
provided by the donor.
(b) The donor shall determine the value of the donated edible agricultural
products as follows:
1.
If there was a previous sale of the edible agricultural products to a
(4)
(5)
(6)
buyer, the donor should retain a copy of an invoice or other
statement identifying the price received by the donor for the edible
agricultural products of comparable grade or quality; or
2.
If there is no previous sale to a buyer, the donor shall on the date of
the donation, determine the value of the donated edible agricultural
products based on the fair market value as determined by average
weekly regional produce auction prices or United States Department
of Agriculture prices for meat, fish, and dairy products.
A qualified taxpayer claiming the tax credit permitted under this section shall
attach the form prescribed under subsection (3) of this section to the tax return
claiming the credit.
Any tax credit allowable under this section that is not used by the qualified
taxpayer in the current tax year may be carried forward for up to four (4)
succeeding years, until the credit has been exhausted.
The department may promulgate administrative regulations to carry out this
section.
Effective:June 25, 2013
History: Created 2013 Ky. Acts ch. 131, sec. 32, effective June 25, 2013.
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