Modifies provisions related to the food pantry tax credit
Impact
The implications of HB 1730 could significantly bolster community assistance initiatives by incentivizing donations to local resources like food pantries and shelters. By offering a tax credit of up to 50% of the donation value—capped at $2,500—individuals and businesses will likely be encouraged to contribute. The bill establishes a cumulative cap of $3 million for tax credits allocated each fiscal year, which aims to control expenditure while promoting charitable donations within the community. The requirement for taxpayers to fill out an affidavit to verify their contributions emphasizes accountability in the claiming process.
Summary
House Bill 1730 addresses the modification of provisions related to tax credits for donations made to local food pantries, homeless shelters, and soup kitchens in Missouri. The bill proposes the repeal of the existing section 135.647, and enacts a new section that clarifies the definitions of local food pantries, shelters, and kitchens. It establishes eligibility criteria for taxpayers to claim tax credits for their donations, enhancing support for community efforts aimed at alleviating food insecurity among low-income populations. Donations made after January 1, 2013, to food pantries and after August 28, 2018, to shelters or kitchens, will qualify for tax credits unless the food is expired.
Contention
While supporters argue that HB 1730 empowers communities to fight food insecurity effectively, critics may contend that the limitations on credit eligibility and the overall cap on available credits could restrict the growth of charitable giving. Additionally, there are concerns regarding enforcement and monitoring to ensure that tax credits do not inadvertently benefit entities that do not contribute meaningfully to community support. The inclusion of specific criteria for eligible organizations, such as tax exemption status, may also raise questions about the accessibility of these benefits for smaller or newer organizations entering the nonprofit field.