The bill introduces a new chapter, Chapter 33.7, titled "TAX CREDIT FOR FOOD DONATION," to Title 44 of the General Laws, which pertains to taxation. The chapter defines key terms such as "apparently wholesome food," "donate," "division," "Good Samaritan reduced price," "nonprofit organization," and "qualified taxpayer." It establishes a tax credit for qualified taxpayers who donate apparently wholesome food, allowing them to claim a credit equal to 75% of the fair market value of the donated food, up to $5,000 per tax year. Additionally, if a qualified taxpayer transports the donated food, they can claim a credit equal to 50% of the transportation costs, also capped at $5,000 per tax year. The credit is only available if the food is used by the donee nonprofit organization to provide food to the needy or is sold to the needy or other nonprofits at no cost or at a Good Samaritan reduced price.

The bill also stipulates that the tax credit cannot exceed the total tax imposed on the taxpayer for the year and can be carried over for up to five years. It outlines the allocation of credits among partners in partnerships, LLCs, and S corporations, and ensures that the credit does not reduce a corporation's tax liability below the state corporate minimum tax. The division of taxation is authorized to develop guidelines and regulations for the implementation of this chapter, including the allocation of tax credits. The division is also required to report annually to the general assembly on the use of the credit. Additionally, Chapter 44-30 of the General Laws, "Personal Income Tax," is amended to include a section on the food donation tax credit. The act is set to take effect on January 1, 2025.