Fillable Crop Donation Tax Credit (Page 2 of 2) in pdf

Instructions for Crop Donation Tax Credit

Oregon allows a tax credit for crops donated to a

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

ket price based upon the market price of the nearest

gleaning cooperative, food bank, or other charitable

regional wholesale buyer or regional u-pick market

organization engaged in the distribution of food with-

price.

out charge.

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

The organization receiving the donation must have a

5,000 × 0.10 = $500 (market value)

principal or ongoing purpose of distribution of food

10% (0.10) × $500 = $50 (credit allowed)

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

income individuals.

How to claim the credit

The organization must be located in Oregon and

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

be exempt from federal income taxes under Section

tion Tax Credit, with your tax records to verify your

501(c)3) of the Internal Revenue Code.

donation. If there was a previous cash buyer, you must

keep a copy of an invoice or other statement identify-

To qualify for this credit

ing the price received for crops of comparable grade

or quality.

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

be sold for cash;

Individuals, partners, S corporation shareholders, or

corporations can take the credit. S corporation share-

• The crop must be fit for human consumption; and

holders or partners may claim the credit based on their

• The food must meet all quality and labeling stan-

pro rata share of the value of the donated crop.

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

Part-year residents and nonresidents. You are

though the food may not be readily marketable due

allowed the credit subject to the same limitations as a

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

credit allowed a resident. Prorate the credit by multiply-

other condition.

ing your total credit by your Oregon percentage to figure

Eligible crops include, but are not limited to:

the amount you can claim on your Oregon return.

• Bedding plants that produce food;

Carryforward. Your credit cannot be more than your

tax liability for Oregon. You can carry forward any

• Orchard stock intended for the production of food;

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

and

not used within three years, it is lost.

• Livestock that may be processed into food for human

Taxpayer assistance

consumption.

Donated food meeting the above qualifications will

General tax information ........

meet the definition of apparently wholesome food as

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

required for this credit.

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

Asistencia en español:

How much is the credit?

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

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

The credit is 10 percent of the value of the quantity of

the crop donated, computed at the wholesale market

TTY (hearing or speech impaired; machine only):

price at the time of donation. The wholesale market

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

price is determined by either:

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

• The amount paid to the grower by the last previous

Americans with Disabilities Act (ADA): Call one of the

cash buyer of the particular crop; or

help numbers for information in alternative formats.

Crop Tax Cred, page 2 of 2

150-101-240 (Rev. 12-08)

Crop Donation Tax Credit Page 2

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