AN ACT RELATING TO TAXATION -- TAX CREDIT FOR FOOD DONATION

HB 7698 creates a tax credit for businesses that donate "apparently wholesome food" (food safe for consumption meeting basic safety standards) to qualifying nonprofits. Businesses like restaurants, grocers, farms, and hospitals can claim a credit equal to 75% of the donated food's fair market value, capped at $5,000 annually per business. Nonprofits receiving donations must verify the food meets safety standards and is used to serve the needy, providing a certificate to the donor. The credit applies to taxes under specific chapters of the tax code and takes effect January 1, 2027.