The bill introduces a new chapter, CHAPTER 33.7, to Title 44 of the General Laws, establishing a tax credit for food donations made by qualified taxpayers to nonprofit organizations. Starting January 1, 2026, qualified taxpayers can receive a tax credit equal to 75% of the fair market value of donated apparently wholesome food, capped at $5,000 per tax year. Additionally, taxpayers who transport donated food can claim a credit for 50% of their transportation costs, also limited to $5,000 per year. To qualify for these credits, the donated food must be used by the nonprofit organization to provide food to the needy, and the organization must issue a certificate confirming compliance with these requirements.

The bill also amends Chapter 44-30 of the General Laws to include a section on the food donation tax credit, allowing individuals and entities to claim the same credit of up to $5,000 per year for food donations. The Division of Taxation is authorized to develop guidelines, rules, or regulations for implementing the provisions of this chapter and will report annually to the General Assembly on the use of the credit, including the credits generated and claimed in the taxable year, and the number of qualified taxpayers claiming credits. Overall, this act aims to encourage food donations to support nonprofit organizations and assist those in need, with the provisions taking effect in 2026.