Bill > HF3386

This bill establishes a new tax credit for farmers in Minnesota who donate food to a food shelf, which is defined as an organization meeting specific requirements to be considered a food shelf. A farmer is defined as a taxpayer engaged in farming who is eligible to own farmland. The credit will be equal to 85 percent of the value of qualifying donations, which are in-kind charitable donations of food produced by the farmer that are eligible for a federal income tax deduction. The value of these donations will be determined using the same rules as for federal charitable contributions. However, the credit is limited to 50 percent of the real property taxes the farmer paid during the year, and the donated food cannot be used to claim any other state income tax deduction or credit. If the credit amount exceeds the farmer's tax liability, the unused portion can be carried forward for up to five years. The credit also applies to partnerships and other business entities, with the credit being passed through to the owners. This provision is effective for taxable years beginning after December 31, 2025.

Budget and Finance

https://www.revisor.mn.gov/bills/94/2026/0/HF/3386/