This bill proposes the establishment of a tax credit for farmers who donate food to food shelves in Minnesota, codified under a new section in Minnesota Statutes, chapter 290. The credit allows farmers to receive a tax benefit equal to 85 percent of the value of their qualifying donations, which must be in-kind charitable contributions of food eligible for deduction under federal tax law. The bill defines key terms such as "farmer," "food shelf," and "qualifying donation," and outlines the credit's limitations, including a cap at 50 percent of the real property taxes paid by the taxpayer during the taxable year.

Additionally, the bill includes provisions to prevent double benefits, stating that the qualifying donation used for this credit cannot be applied to any other state income tax deduction or credit. It also allows for a nonrefundable credit carryover for up to five succeeding taxable years if the credit exceeds the taxpayer's liability. The bill addresses how credits are allocated for partnerships and nonresidents, ensuring that the benefits are distributed fairly among partners and based on residency status. The provisions of this bill will take effect for taxable years beginning after December 31, 2025.