An Act To Support Maine Fanns and Alleviate Hunger
Maine Legislature, Session 125, LD 1164
Committee Amendment CA_A_H710 (House)
Amends: 36 MRSA §199-C, 36 MRSA §5219-H

COMMITTEE AMENDMENT "A" to H.P. 862, L.D. 1164, Bill, "An Act To 
Support Maine Fanns and Alleviate Hunger" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 36 MRSA §199-C, sub-§3 is enacted to read: 
3. Specific tax credit review. By April 1, 2018, the committee shall review the 
income tax credit under section 5219-HH to determine whether the income tax credit for 
the donation of agricultural products to a food bank, food kitchen or other organization 
that provides free food to low-income individuals should be continued, repealed or 
modified. 
Sec. 2. 36 MRSA §5219-HH is enacted to read: 
§5219-HH. Farm donation credit 
A person engaged in commercial agricultural production, as defined in section 2013, 
subsection 1, paragraph A, may claim a credit against taxes imposed by this Part equal to 
the fair market value up to $2,500, as detennined under Section 170(e) of the Code, of 
agricultural products donated to a food bank, food kitchen or other organization that is 
exempt under Section 50Hc) of the Code or incomorated under Title 13-B and that 
provides food to low-income individuals without charging a fee for the food or requiring 
any other type of compensation from the low-income individual. For pumoses of this 
section, "low-income individual" means a person who is a member of a lower income 
household as defined in Title 30-A, section 5002, subsection 11. A taxpayer may not 
claim a credit under this section if the taxpayer claims a deduction from federal income 
tax for a charitable contribution under Section 170 of the Code for the same donation. 
This credit may not reduce the tax otherwise due under this Part to less than zero. 
COMMITTEE AMENDMENT 
l3 
COMMITTEE AMENDMENT 'A" to H.P. 862, L.D. 1164 
Sec. 3. Application. That section of this Act that enacts the Maine Revised 
Statutes, Title 36, section 5219-HH applies to tax years beginning on or after January 1, 
2013.' 
SUMMARY 
This amendment changes the bill by reducing the maximum amount of the income 
tax credit for a donation of agricultural products to $2,500 and making the credit 
nonrefundable. It clarifies that an organization receiving the donated food must be 
exempt from federal income tax under Section 501Cc) of the federal Internal Revenue 
Code or a nonprofit corporation organized under the Maine Revised Statutes, Title l3-B 
and may not charge a fee for the food or require any other type of compensation. It 
provides a definition of "low-income individual," clarifies how fair market value of the 
donation will be determined and prohibits a taxpayer that has claimed a federal deduction 
for a charitable contribution for the same donation from claiming the credit. It provides 
for a review of the tax credit by the joint standing committee of the Legislature having 
jurisdiction over taxation matters no later than April 1, 2018 to determine whether the 
credit should be continued, repealed or modifed. It provides that the changes apply to tax 
years beginning on or after January 1,2013. 
FISCAL XOTE REQUI<ED 
(See attached) 
COMMITTEE AMENDMENT 
" 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Approved: 02116112 
~aC':.-
LD 1164 
LR 1774(02) 
An Act To Support Maine Farms and Alleviate Hunger 
Fiscal Note for Bill as Amended by Committee Amendment 'A" Oi -110') 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2011-12 
FY 2012-13 
$0 
$817,000 
Projections 
FY 2013-14 
$2,726,500 
Projections 
FY 2014-15 
$2,726,500 
Other Special Revenue Funds 
$0 
$0 
($817,000) 
($43,000) 
($2,726,500) 
($143,500) 
($2,726,500) 
($143,500) 
Fiscal Detail and Notes 
Providing a non-refundable income tax credit of up to $2,500 to persons engaged in commercial agricultural 
production for donations of food to incorporated nonprofit organizations that provide free food to low-income persons 
to alleviate hunger will reduce revenues to the General Fund and reduce revenue sharing. 
LRl774(02) - Fiscal Note - Page 1 of 1