Bill > SF3924

This bill establishes a new tax credit for farmers in Minnesota who donate food to qualifying food shelf organizations, which are defined as organizations meeting specific requirements. A "farmer" is defined as a taxpayer engaged in farming and eligible to own farmland, and a "qualifying donation" refers to food produced by the farmer that is eligible for a federal charitable deduction. The credit will be equal to 85% of the value of these qualifying donations, with the value determined by federal rules for charitable contributions. However, the credit is limited to 50% of the real property taxes the farmer paid during the year, and the donated food cannot be used for any other state tax deduction or credit to prevent a double benefit. If the credit amount exceeds a farmer's tax liability, the unused portion can be carried forward for up to five years, subject to certain limitations. The credit also applies to partnerships and other business structures, with credits passed through to owners, and is allocated for nonresidents and part-year residents based on income sourcing rules. This provision will be effective for tax years beginning after December 31, 2025.

Budget and Finance

https://www.revisor.mn.gov/bills/94/2026/0/SF/3924/