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

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 Crop Donation Tax Credit form,

tion engaged in the distribution of food without charge.

with your tax records to verify your donation. If there

The organization receiving the donation must have a

was a previous cash buyer, you must keep a copy of an

principal or ongoing purpose of distribution of food

invoice or other statement identifying the price received

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

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 can’t be more than your tax

• The food must meet all quality and labeling stan-

liability for Oregon. You can carry forward any unused

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

credit for the next three years. If the credit isn’t used

though the food may not be readily marketable due

within three years, it is lost.

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

other condition.

Have questions? Need help?

Eligible crops include, but aren’t 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. 12-15) DRAFT 2, 09-14-15

Form 150-101-240 Draft - Crop Donation Tax Credit - 2015 Page 2

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