Relating to increasing the limit on value of agricultural products under the Farm-To-Food Bank Tax Credit
Impact
If enacted, HB 4027 would significantly benefit local farmers by providing a more substantial tax incentive for their contributions to food banks. This adjustment is expected to increase the volume of donations made to food programs, which in turn could lead to improved food availability for low-income families and individuals, potentially tackling hunger issues more effectively. The proposed legislation reflects an effort by the state legislature to support both agriculture and community welfare simultaneously.
Summary
House Bill 4027 aims to amend the West Virginia Farm-To-Food Bank Tax Credit by raising the maximum tax credit limit for farming taxpayers making donations of edible agricultural products to nonprofit food programs from $2,500 to $5,000. The bill also seeks to apply this credit retroactively to donations made from January 1, 2022. This change is intended to incentivize agricultural donations to support food banks and address food insecurity within the community.
Sentiment
The general sentiment surrounding HB 4027 appears to be positive, with legislative proponents highlighting the importance of supporting local agriculture and alleviating food insecurity. Members of the agricultural community may welcome the increased tax credit as a means to bolster their contributions to nonprofit organizations. However, there may be concerns regarding the overall budget implications of raising the credit limit, especially from fiscal conservatives who prioritize budget balancing and tax implications.
Contention
While there doesn't appear to be significant opposition formally noted in the discussions around HB 4027, the general contention in similar legislative contexts often revolves around the impacts on state revenue and whether such credits effectively lead to increased donations. Opponents of tax incentives might argue that while the intention is noble, the fiscal realities must also be considered to ensure the bill does not adversely impact the state's financial health.