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. Starting from January 1, 2027, qualified taxpayers can receive a tax credit equal to 75% of the fair market value of the apparently wholesome food donated, with a maximum credit limit of $5,000 per tax year.

The bill defines "apparently wholesome food" and outlines the criteria for donations, ensuring that the food is intended for use in providing assistance to the needy. Nonprofit organizations receiving the donations must provide a certificate to the donor, confirming compliance with the requirements set forth in the bill, including a statement that the donation meets the definition of apparently wholesome food.

Additionally, the bill stipulates that any unused tax credits can be carried over for up to five succeeding taxable years. It includes provisions for the allocation of credits among partnerships, limited liability companies, and S corporations, ensuring that tax credits do not reduce a corporation's tax liability below the state minimum tax. 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 tax credit, including the credits generated and claimed in the taxable year, as well as the number of qualified taxpayers claiming credits.