Income tax: credits: food banks.
This amendment will have a significant impact on both individual and corporate taxpayers who engage in philanthropy through food donations. By removing the expiration date for the tax credits, SB353 incentivizes ongoing contributions to food banks, providing a more stable source of food aid for communities in need. This change could potentially lead to an increase in the volume of food donated to food banks, addressing food insecurity more effectively in California.
Senate Bill 353, introduced by Senator Alvarado-Gil, aims to amend existing provisions in the Revenue and Taxation Code regarding tax credits for donations made to food banks. Specifically, the bill seeks to extend credit authorization for qualified food donations indefinitely, lifting the previous limitation that was set to expire on January 1, 2027. Under SB353, qualified taxpayers who donate fresh fruits, vegetables, and other specified agricultural products or processed foods can receive a tax credit equal to 15% of the value of their donations.
While the bill has the support of advocates for food security and agricultural interests, there may be counterarguments related to fiscal responsibility. Critics could argue that indefinite tax credits might strain state resources or discourage cash donations as entities might prefer to donate food for the tax benefits. However, the primary focus of the bill remains on increasing food accessibility for low-income communities, which could be seen as outweighing these concerns. The expected outcomes include not just a reduction in food waste, but also a positive influence on public health by ensuring better nutrition for those relying on food banks.