Relating to income tax; to provide a credit for donation of certain food items
Impact
The bill is poised to significantly impact state laws regarding agricultural contributions and tax incentives. Specifically, it will amend the state tax code to afford benefits to farmers donating to food banks, thereby incentivizing food donations. The tax credits are limited to a total of $2,000,000 annually combined for all participating farmers, which may affect the availability of funds and the breadth of participation in the program. By formalizing these contributions, the legislation not only seeks to assist food banks but also aims to foster a collaborative atmosphere between agricultural producers and community organizations working towards reducing hunger.
Summary
House Bill 321, also known as the Farm-to-Food Bank Act of 2025, aims to encourage Alabama farmers to donate edible farm products to designated food banks by offering an income tax credit. This initiative is designed to bolster food security in the state by reducing waste and helping provide food to those in need. Under this bill, farmers who donate qualifying products can receive a tax credit equal to 15% of the value of their donations, capped at $5,000. The tax credits will be administered by the Department of Revenue and will be available for donations made starting January 1, 2026, extending through December 31, 2030.
Contention
While the bill has garnered support for addressing food insecurity and incentivizing charitable contributions from the agricultural sector, there may be points of contention related to the cap on tax credits and the first-come, first-served basis for issuing credit certificates. Concerns could arise about equitable access to the tax credits and whether the established limitations would adequately respond to the needs of food banks throughout the state. Stakeholders may also discuss the potential impact of the program's budget constraints on the effectiveness and scale of donations, as well as the criteria set for what constitutes an eligible donation.
Physicians, rural physicians income tax credit, existing law repealed and replaced with new income tax credit after December 31, 2024, new credit increased to $10,000 per year for four years, transition provisions
Relating to child care and workforce development; to establish the employer tax credit and child care provider tax credit; to make legislative findings.