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

SB 2447 creates a tax credit for businesses and organizations that donate "apparently wholesome food" (food safe to eat but not sold due to appearance or other factors) to nonprofits serving the needy. Eligible taxpayers - including restaurants, grocers, farms, and hospitals - can claim a credit equal to 75% of the donated food's fair market value, capped at $5,000 per year. To qualify, donations must go to 501(c)(3) nonprofits that provide food to people in need, and nonprofits must provide a certificate confirming the donation meets safety standards. The credit applies to taxes under specific chapters of state law and takes effect January 1, 2027.