HB 752
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader
House Bill 752 (Delegate Ebersole)
Ways and Means Budget and Taxation
Income Tax Credit - Food Donation Pilot Program - Extension
This bill extends the food donation income tax credit for qualified farms for two additional
tax years through tax year 2023. The bill takes effect July 1, 2021.
Fiscal Summary
State Effect: General fund revenues decrease by up to $100,000 annually in FY 2023 and
FY 2024 due to credits claimed against the income tax. Expenditures are not affected.
(in dollars) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
GF Revenue $0 ($100,000) ($100,000) $0 $0
Expenditure 0 0 0 0 0
Net Effect $0 ($100,000) ($100,000) $0 $0
Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease
Local Effect: Local highway user revenues decrease in FY 2023 and FY 2024 to the extent
credits are claimed against the corporate income tax. Local expenditures are not affected.
Small Business Effect: Minimal.
Analysis
Current Law: Chapters 232 and 233 of 2017 created a tax credit against the State income
tax for eligible food donations made by a qualified farm located in Anne Arundel, Calvert,
Charles, Montgomery, Prince George’s, or St. Mary’s counties.
Chapter 361 of 2019 extended the tax credit through tax year 2021 and expanded the
program so that all qualified farm businesses located in the State qualify for the credit.
Chapter 361 also (1) decreased to $100,000 the maximum amount of tax credit certificates
that the Maryland Department of Agriculture (MDA) may issue in each fiscal year and
(2) established the General Assembly’s intent that MDA continue to fund the marketing of
the tax credit program and facilitate the donation of eligible food donations by qualified
farms through the reimbursement of transportation costs or direct assistance with the
transportation of eligible food donations.
The value of the credit is equal to 50% of the value of the eligible food donation (75% for
certified organic produce), not to exceed $5,000 in the taxable year. The Secretary of
Agriculture can increase this limit by up to an additional $5,000 in the taxable year. Any
unused amount of the credit may be carried forward for five taxable years.
To qualify, eligible donations must be made to an organization that is authorized by MDA
to act as a tax credit certificate administrator. These administrators are required to issue tax
credit certificates to eligible farms upon receipt of an eligible food donation and provide
within 30 days a copy of the certificate to the Comptroller and MDA.
State Revenues: The bill extends the tax credit program in tax year 2022 and 2023. As a
result, general fund revenues will decrease by $100,000 annually in fiscal 2023 and 2024.
This estimate assumes that MDA awards the maximum authorized amount of credits in
each tax year and tax credits are claimed against the personal income tax. To the extent tax
credits are claimed against the corporate income tax, a portion of tax credits claimed will
decrease Transportation Trust Fund and Higher Education Investment Fund revenues.
Local Revenues: To the extent that income tax credits are claimed against the corporate
income tax, local highway user revenues decrease minimally in fiscal 2023 and 2024.
Additional Information
Prior Introductions: None.
Cross File: SB 539 (Senator Guzzone) - Budget and Taxation.
Information Source(s): Comptroller’s Office; Maryland Department of Agriculture;
Department of Legislative Services
HB 752/ Page 2
Fiscal Note History: First Reader - February 1, 2021
an/jrb Third Reader - March 18, 2021
Analysis by: Robert J. Rehrmann Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 752/ Page 3


Statutes affected:
Text - First - Income Tax Credit - Food Donation Pilot Program - Extension: 10-745 Tax General, 2-023 Tax General
Text - Third - Income Tax Credit - Food Donation Pilot Program - Extension: 10-745 Tax General, 2-023 Tax General