This bill will allow the state’s agricultural sector to grow and will in return, provide healthy, locally-grown food to needy families within Massachusetts. The bill will increase food access, reduce hunger and reduce food waste by allowing for partnerships between businesses that produce food crops and nonprofit food distribution organizations.
What the bill does:
After January 1, 2020, but before January 1, 2024, any farming business that donates food crops to a nonprofit food distribution organization shall be allowed a deduction from its net taxable income for the taxable year of the donation
The tax deduction will be equal to the market value of the donated crops and the tax deduction can not exceed $2,000 for all donations in a single year
A deduction is only allowed if the food crops are being donated for food for the needy
In order to claim the deduction, the donor must provide their yearly tax returns and a written certificate from the receiving nonprofit. Claims will be given in proportion to the individual’s share of the business.
