HB 2457

                                SECOND REGULAR SESSION
                   HOUSE BILL NO. 2457
                          103RD GENERAL ASSEMBLY
                         INTRODUCED BY REPRESENTATIVE MANSUR.
5953H.01I  JOSEPH ENGLER, Chief Clerk
                                           AN ACT
To repeal section 135.647, RSMo, and to enact in lieu thereof one new section relating to food
       pantry donation tax credits.
Be it enacted by the General Assembly of the state of Missouri, as follows:
        Section A. Section 135.647, RSMo, is repealed and one new section enacted in lieu
2 thereof, to be known as section 135.647, to read as follows:
        135.647. 1. As used in this section, the following terms shall mean:
2(1) "Food bank", any food bank that:
3(a) Is exempt from taxation under section 501(c)(3) of the Internal Revenue
4 Code of 1986, as amended;
5(b) Maintains an established operation involving the provision of food or edible
6 commodities, or the products of food or edible commodities, to food pantries, soup
7 kitchens, hunger relief centers, or other food or feeding centers that, as an integral part
8 of their normal activities, provide meals or food to needy persons; and
9(c) Is located in the state of Missouri;
10(2) "Local food pantry", any food pantry that is:
11(a) Exempt from taxation under section 501(c)(3) of the Internal Revenue Code of
12 1986, as amended; and
13(b) Distributing emergency food supplies to Missouri low-income people who would
14 otherwise not have access to food supplies in the area in which the taxpayer claiming the tax
15 credit under this section resides;
16[(2)] (3) "Local homeless shelter", any homeless shelter that is:
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language.
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17(a) Exempt from taxation under Section 501(c)(3) of the Internal Revenue Code of
18 1986, as amended; and
19(b) Providing temporary living arrangements, in the area in which the taxpayer
20 claiming the tax credit under this section resides, for individuals and families who otherwise
21 lack a fixed, regular, and adequate nighttime residence and lack the resources or support
22 networks to obtain other permanent housing;
23[(3)] (4) "Local soup kitchen", any soup kitchen that is:
24(a) Exempt from taxation under section 501(c)(3) of the Internal Revenue Code of
25 1986, as amended; and
26(b) Providing prepared meals through an established congregate feeding operation to
27 needy, low-income persons including, but not limited to, homeless persons in the area in
28 which the taxpayer claiming the tax credit under this section resides;
29[(4)] (5) "Taxpayer", an individual, a firm, a partner in a firm, corporation, or a
30 shareholder in an S corporation doing business in this state and subject to the state income tax
31 imposed by chapter 143, excluding withholding tax imposed by sections 143.191 to 143.265.
322. (1) Beginning on March 29, 2013, any donation of cash or food made to a local
33 food pantry on or after January 1, 2013, unless such food is donated after the food's expiration
34 date, shall be eligible for tax credits as provided by this section.
35(2) Beginning on August 28, 2018, any donation of cash or food made to a local soup
36 kitchen or local homeless shelter on or after January 1, 2018, unless such food is donated after
37 the food's expiration date, shall be eligible for a tax credit as provided under this section.
38(3) Beginning on August 28, 2026, any donation of cash or food made to a food
39 bank on or after January 1, 2026, unless such food is donated after the food's expiration
40 date, shall be eligible for a tax credit as provided under this section.
41(4) For all tax years beginning on or after January 1, 2007, but on or before
42 December 31, 2025, any taxpayer who makes a donation that is eligible for a tax credit under
43 this section shall be allowed a credit against the tax otherwise due under chapter 143,
44 excluding withholding tax imposed by sections 143.191 to 143.265, in an amount equal to
45 fifty percent of the value of the donations made to the extent such amounts that have been
46 subtracted from federal adjusted gross income or federal taxable income are added back in the
47 determination of Missouri adjusted gross income or Missouri taxable income before the credit
48 can be claimed.
49(5) For all tax years beginning on or after January 1, 2026, any taxpayer who
50 makes a donation that is eligible for a tax credit under this section shall be allowed a
51 credit against the tax otherwise due under chapter 143, excluding withholding tax
52 imposed by sections 143.191 to 143.265, in an amount up to seventy percent of the value
53 of the donations made to the extent such amounts that have been subtracted from
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54 federal adjusted gross income or federal taxable income are added back in the
55 determination of Missouri adjusted gross income or Missouri taxable income before the
56 credit can be claimed.
57(6) Each taxpayer claiming a tax credit under this section shall file an affidavit with
58 the income tax return verifying the amount of their contributions. The amount of the tax
59 credit claimed shall not exceed the amount of the taxpayer's state tax liability for the tax year
60 that the credit is claimed and shall not exceed two thousand five hundred dollars per taxpayer
61 claiming the credit. Any amount of credit that the taxpayer is prohibited by this section from
62 claiming in a tax year shall not be refundable, but may be carried forward to any of the
63 taxpayer's three subsequent tax years. No tax credit granted under this section shall be
64 transferred, sold, or assigned. No taxpayer shall be eligible to receive a credit pursuant to this
65 section if such taxpayer employs persons who are not authorized to work in the United States
66 under federal law. No taxpayer shall be able to claim more than one credit under this section
67 for a single donation.
683. (1) For all tax years beginning on or after January 1, 2007, but on or before
69 December 31, 2025, the cumulative amount of tax credits under this section which may be
70 allocated to all taxpayers contributing to a local food pantry, local soup kitchen, or local
71 homeless shelter in any one fiscal year shall not exceed one million seven hundred fifty
72 thousand dollars.
73(2) For all tax years beginning on or after January 1, 2026, the cumulative
74 amount of tax credits under this section that may be allocated to all taxpayers
75 contributing to local food pantries, local soup kitchens, and local homeless shelters in
76 any one fiscal year shall not exceed two million seven hundred fifty thousand dollars.
77 For all tax years beginning on or after January 1, 2026, the cumulative amount of tax
78 credits under this section that may be allocated to all taxpayers contributing to food
79 banks shall be one million two hundred fifty thousand dollars.
80(3) In the event tax credits claimed under one category do not total the allocated
81 amount for a given fiscal year, the unused portion for that category shall be made
82 available to the other category. In the event the total amount of tax credits claimed for
83 any one category exceeds the amount available for a given fiscal year, the amount
84 redeemed shall be apportioned equally to all eligible taxpayers claiming the credit under
85 that category. The director of revenue shall establish a procedure by which the cumulative
86 amount of tax credits is apportioned among all taxpayers claiming the credit by April fifteenth
87 of the fiscal year in which the tax credit is claimed. To the maximum extent possible, the
88 director of revenue shall establish the procedure described in this subsection in such a manner
89 as to ensure that taxpayers can claim all the tax credits possible up to the cumulative amount
90 of tax credits available for the fiscal year.
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91(4) In the event a full or partial credit denial, due to the cumulative maximum
92 amount of credits being redeemed for the fiscal year, causes an income-tax balance due
93 to be owed to the state by the taxpayer, the taxpayer shall not be held liable for any
94 addition to tax, penalty, or interest on that income-tax balance due, provided the
95 balance is paid, or approved payment arrangements are made, within sixty days from
96 issuance of the notice of credit denial.
974. Any food bank, local food pantry, local soup kitchen, or local homeless shelter
98 may accept or reject any donation of food made under this section for any reason. For
99 purposes of this section, any donations of food accepted by a food bank, local food pantry,
100 local soup kitchen, or local homeless shelter shall be valued at fair market value, or at
101 wholesale value if the taxpayer making the donation of food is a retail grocery store, food
102 broker, wholesaler, or restaurant.
1035. The department of revenue shall promulgate rules to implement the provisions of
104 this section. Any rule or portion of a rule, as that term is defined in section 536.010, that is
105 created under the authority delegated in this section shall become effective only if it complies
106 with and is subject to all of the provisions of chapter 536 and, if applicable, section 536.028.
107 This section and chapter 536 are nonseverable and if any of the powers vested with the
108 general assembly pursuant to chapter 536 to review, to delay the effective date, or to
109 disapprove and annul a rule are subsequently held unconstitutional, then the grant of
110 rulemaking authority and any rule proposed or adopted after August 28, 2007, shall be invalid
111 and void.
1126. Under section 23.253 of the Missouri sunset act:
113(1) The program authorized under this section shall [be reauthorized as of August 28,
114 2018, and shall] expire on December 31, [2026] 2032, unless reauthorized by the general
115 assembly; [and]
116(2) This section shall terminate on September first of the calendar year immediately
117 following the calendar year in which the program authorized under this section is sunset; and
118(3) The provisions of this subsection shall not be construed to limit or in any way
119 impair a taxpayer's ability to redeem tax credits authorized on or before the date the program
120 authorized under this section expires.
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