Bill > S2447

This bill establishes a new tax credit for "qualified taxpayers," which includes various businesses and organizations like food producers, grocers, restaurants, and hospitals, who donate "apparently wholesome food" to nonprofit organizations. "Apparently wholesome food" refers to food that is safe for human consumption and meets all federal, state, and local safety standards, even if it's not perfectly marketable due to minor issues like appearance or age, but excludes damaged canned goods. The credit will be equal to 75% of the fair market value of the donated food, with a maximum of $5,000 per taxpayer per year, and is intended to encourage donations to organizations that provide food to the needy. To claim the credit, the nonprofit organization must provide the donor with a certificate detailing the donation and confirming its use aligns with the bill's requirements, and the taxpayer must apply to the division of taxation. The credit cannot reduce a taxpayer's liability below certain minimum tax amounts and any unused credit can be carried forward for up to five years. The division of taxation is authorized to create rules for implementing this chapter but will not be responsible for determining if food qualifies as "apparently wholesome." This new tax credit will become effective on January 1, 2027.

Budget and Finance

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