WHB/1/1
Sponsored by Andrew Gan, Om Polavarapu, John Choi of Brentwood High School
This legislation was filed in the Economic and Community Development category
Presented as part of the YIG Volunteer 2024 conference
| 1 | BE IT ENACTED BY THE TENNESSEE YMCA YOUTH IN GOVERNMENT |
| 2 | Section 1: Terms in this act will be defined as follows: |
| 3 | a) Tax incentive: A tax incentive is an aspect of a government's taxation policy designed to |
| 4 | incentivize or encourage a particular economic activity by reducing tax payments |
| 5 | |
| 6 | Section 2: A tax incentive shall be established for food companies that donate surplus food |
| 7 | inventory to non-profit organizations serving individuals in need. Food companies eligible for this |
| 8 | incentive include food manufacturers, distributors, retailers, restaurants, and any other |
| 9 | establishments involved in the production, sale, or distribution of food products. |
| 10 | |
| 11 | Section 3: Food donations eligible for tax incentives must meet the following criteria: |
| 12 | a) The food must be fit for human consumption and in compliance with health and safety |
| 13 | regulations. |
| 14 | b) The food must be donated to non-profit organizations registered with the Tennessee |
| 15 | Department of Revenue and designated for providing food assistance to individuals and families in |
| 16 | need. |
| 17 | |
| 18 | Section 4: Food companies claiming tax credits for food donations must maintain accurate records |
| 19 | documenting the quantity, description, and value of the donated food. |
| 20 | |
| 21 | Section 5: A subcommittee under the Tenessee Department of Revenue shall be created to process |
| 22 | the documentation. This committee shall also determine the tax incentive based on the amount of |
| 23 | donations and the market price of the donated food. However, the incentive must be set lower |
| 24 | than the calculated total market price to ensure desired donations. |
| 25 | |
| 26 | Section 6: This committee shall conduct public awareness and education campaigns to inform food |
| 27 | companies about the food donation tax incentive and the process for claiming tax credits. |
| 28 | Educational materials shall be distributed through various channels, including the department's |
| 29 | website, workshops, seminars, and industry associations. |
| 30 | |
| 31 | Section 7: Food companies claiming tax credits for food donations shall submit annual reports to |
| 32 | the Tennessee Department of Revenue summarizing the total value of donations and the recipients |
| 33 | of the donated food. The committee shall compile aggregated data from these reports to evaluate |
| 34 | the impact of the incentive on food waste reduction and hunger relief efforts in the state. |
| 35 | Section 8: Funding will be provided for the committee’s salary. The transportation of the product |
| 36 | will be provided by the businesses. The amount of funding may be debated further, with an |
| 37 | estimate of 1 million a year. |
| 38 | Section 9: All laws or parts of laws in conflict with this are hereby repealed |
| 39 | Section 10: This act shall go into effect on January 1, 2025. |
| 40 |