The proposed 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. The bill defines "apparently wholesome food" and outlines the criteria for what constitutes a donation, including the stipulation that the donor may receive a "good samaritan reduced price." Qualified taxpayers, which include a variety of entities such as producers, retailers, and nonprofit organizations, can claim a tax credit equal to 75% of the fair market value of the donated food, with a maximum credit of $5,000 per tax year. Additionally, a separate credit of 50% of transportation costs related to the donation is also available, subject to the same $5,000 cap.

The bill also includes provisions for reporting and regulatory oversight, allowing the division of taxation to create guidelines for implementing the tax credits. It mandates that nonprofit organizations provide a certificate to the donor upon receipt of the food, detailing the donation's specifics. The act is set to take effect on January 1, 2026, and aims to encourage food donations to support needy populations while providing tax relief to those who contribute.