Fillable Form 150-101-240 - Crop Donation Tax Credit Form

Instructions for Crop Donation Tax Credit

Oregon allows a tax credit for crops donated to a glean-

How to claim the credit

ing cooperative, food bank, or other charitable organiza-

Keep your completed Form 150-101-240, Crop Donation

tion engaged in the distribution of food without charge.

Tax Credit, with your tax records to verify your dona-

The organization receiving the donation must have a

tion. If there was a previous cash buyer, you must keep

principal or ongoing purpose of distribution of food

a copy of an invoice or other statement identifying the

to children or homeless, unemployed, elderly, or low-

price received for crops of comparable grade or quality.

income individuals.

Individuals, partners, S corporation shareholders, or

The organization must be located in Oregon and be

corporations can take the credit. S corporation share-

exempt from federal income taxes under Section 501(c)

holders or partners may claim the credit based on their

(3) of the Internal Revenue Code.

pro rata share of the value of the donated crop.

Part-year residents and nonresidents. You are

To qualify for this credit

allowed the credit subject to the same limitations as a

• You must be in the business of growing the crop to

credit allowed a resident. Prorate the credit by multiply-

be sold for cash;

ing your total credit by your Oregon percentage to figure

the amount you can claim on your Oregon return.

• The crop must be fit for human consumption; and

Carryforward. Your credit cannot be more than your

• The food must meet all quality and labeling stan-

tax liability for Oregon. You can carry forward any

dards imposed by federal, state, or local laws, even

unused credit for the next three years. If the credit is

though the food may not be readily marketable due

not used within three years, it is lost.

to appearance, age, freshness, grade, size, surplus, or

other condition.

Taxpayer assistance

Eligible crops include, but are not limited to:

General tax information ...........

• Bedding plants that produce food;

Salem .......................................................503-378-4988

Toll-free from an Oregon prefix ....... 1-800-356-4222

• Orchard stock intended for the production of food; and

Asistencia en español:

• Livestock that may be processed into food for human

En Salem o fuera de Oregon .................503-378-4988

consumption.

Gratis de prefijo de Oregon .............. 1-800-356-4222

Donated food meeting the above qualifications will

TTY (hearing or speech impaired; machine only):

meet the definition of apparently wholesome food as

Salem area or outside Oregon .............. 503-945-8617

required for this credit.

Toll-free from an Oregon prefix ........1-800-886-7204

How much is the credit?

Americans with Disabilities Act (ADA): Call one of

the help numbers for information in alternative formats.

The credit is 15 percent of the value of the quantity of

the crop donated, computed at the wholesale market

price at the time of donation. The wholesale market

price is determined by either:

• The amount paid to the grower by the last previous

cash buyer of the particular crop; or

• In the event there is no previous cash buyer, a mar-

ket price based upon the market price of the nearest

regional wholesale buyer or regional u-pick market

price.

Example: 5,000 pounds of potatoes @ $0.10/lb.

5,000 × 0.10 = $500 (market value)

15% (0.15) × $500 = $75 (credit allowed)

150-101-240 (Rev. 12-14)

Crop Tax Credit, page 2 of 2

Form 150-101-240 - Crop Donation Tax Credit Form - 2014 Page 2

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