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. This chapter establishes a tax credit for qualified taxpayers who donate "apparently wholesome food" to nonprofit organizations. The term "apparently wholesome food" is defined as food that meets all safety standards required by law, excluding certain damaged canned goods. Qualified taxpayers include individuals and entities such as producers, retailers, wholesalers, and various institutions. The tax credit is set at 75% of the fair market value of the donated food, with a maximum of $5,000 per tax year. Additionally, a credit of 50% of transportation costs for the donated food is available, also capped at $5,000 per tax year, provided no monetary value is received in return, including a Good Samaritan reduced price.

The bill specifies that the tax credit can be applied against taxes imposed by chapters 11, 14, 17, and 30 of Title 44 for the taxable year of the donation. The credit is only allowed if the food is used by the nonprofit organization to provide food to the needy or is sold to the needy or other nonprofits at no cost or a Good Samaritan reduced price. Nonprofit organizations must provide a certificate to the donor detailing the donation, and the donor must apply for the tax credit following procedures set by the division of taxation. Unused credits can be carried over for up to five years. The bill also mandates that the division report annually on the use of the credit and amends Section 44-30 of the General Laws to include the food donation tax credit against personal income tax. The act is set to take effect on January 1, 2025.