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 meet specific criteria outlined in the bill. The monetary value of these donations will be determined according to the rules set forth in the Internal Revenue Code. However, the credit is limited to 50 percent of the real property taxes paid by the farmer during the taxable year, and any qualifying donation used for this credit cannot be used for any other state income tax deduction or credit.

Additionally, the bill includes provisions for the carryover of unused credits for up to five succeeding taxable years, ensuring that farmers can benefit from the credit even if their tax liability is lower than the credit amount. It also addresses how credits are allocated for partnerships and multiple owners, ensuring that the benefits are distributed proportionally. The bill specifies that it will take effect for taxable years beginning after December 31, 2025.