An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for surplus donation farmer tax credit; and imposing duties on the Department of Community and Economic Development.

HB 1992 creates a new tax credit for Pennsylvania farmers who donate surplus agricultural products (like crops or livestock) to qualified food banks enrolled in the Pennsylvania Agricultural Surplus System. Farmers can claim a credit equal to 100% of the sale price, fair market value, or $20,000 (whichever is lowest) per year, but must apply for certification from the Department of Community and Economic Development with documentation including the food bank’s written acknowledgment. The credit is limited to $5 million total annually and must be used against state income tax liability for the same year, with no carryover beyond one year. This directly affects eligible farmers and food banks participating in the state’s surplus donation program, aiming to reduce food waste while supporting agricultural producers.