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Added by St. 2026, c. 101, §§ 18-19, effective for tax years ending on or after December 31, 2026; repealed effective for taxable years beginning on or after January 1, 2029.
(a)
As used in this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:
“Farm business”, any business corporation located in the commonwealth that is engaged in the business of farming as defined in section 1A of chapter 128.
“Nonprofit food distribution organization”, an entity located in the commonwealth that is exempt from taxation under section 501(c)(3) of the Code, as amended or renumbered, and organized with a purpose of providing food donations or selling food at a charge sufficient only to cover the cost of handling such food.
(b)
A farm business that donates food, meals or crops grown, manufactured, packaged or prepared by the farm business to a nonprofit food distribution organization shall be allowed a refundable credit against the liability imposed by this chapter for the taxable year of the donation. The credit shall be equal to the fair market value of the food, meals or crops donated by the farm business during the taxable year but not to exceed an aggregate credit of $5,000 annually; provided, however, that the farm business shall not have claimed a federal or state tax deduction for the same food, meals or crops donated by said farm business during the same taxable year.
(c)
If the amount of the credit allowed under this section exceeds the taxpayer’s liability, the commissioner of revenue shall treat such excess as an overpayment and shall pay the taxpayer 100 per cent of the amount of such excess, without interest. No credit provided for under this section shall be transferable or shall carry over into a subsequent tax year.
(d)
A credit shall be allowed under this section only if the donated food, meals or crops are distributed or served by the nonprofit food distribution organization without charge or at a charge sufficient only to cover the cost of handling such food and are not: (i) used by the nonprofit food distribution organization as consideration for services performed or personal property purchased; or (ii) sold by the nonprofit food distribution organization at a charge in excess of the organization’s cost of handling the food, meals or crops.
(e)
To claim any credit under this section, the farm business shall attach to the farm business’s income tax return, for each donation, a written certification that identifies the nonprofit food distribution organization, the date of the donation, the amount of food donated and the fair market value of the food, meals or crops donated.
(f)
The commissioner of revenue, in consultation with the commissioner of agricultural resources, shall promulgate regulations necessary for the implementation, administration and enforcement of this section and subsection (jj) of section 6 of chapter 62. The commissioner of revenue, in consultation with the commissioner of agricultural resources, shall develop and publish a standard form that eligible claimants under this section shall use to report the information required for donations under subsection (e).
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| Last updated: | June 12, 2026 |
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