The proposed bill amends the Income Tax Act of 1967 by adding two new sections, 260 and 679, which establish tax credits for contributions made by taxpayers to shelters for homeless persons, food kitchens, food banks, or similar entities that provide food and accommodation to indigent individuals. Taxpayers can claim a credit equal to the sum of cash and the fair market value of food items contributed, with specific limits set for different types of taxpayers. For individual taxpayers, the maximum credit is capped at $150 for single filers and $300 for joint filers, while resident estates or trusts can claim up to 10% of their tax liability or $7,500, whichever is less.

To qualify for the credit, taxpayers must obtain a written acknowledgment from the receiving entity, which must include details such as the contribution date, amount, and attestations regarding the entity's purpose and compliance with relevant laws. Additionally, the bill stipulates that any amount claimed as a credit cannot have been deducted in calculating federal taxable income, and any excess credit beyond the taxpayer's liability will be refunded. The Department of Revenue is also required to report annually on the total amount of credits claimed under these new sections.

Statutes affected:
House Introduced Bill: 206.1, 206.847