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HB175 ENGROSSED
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HB175
YMZTBNN-2
By Representative Robbins
RFD: Ways and Means Education
First Read: 13-Jan-26
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HB175 Engrossed
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First Read: 13-Jan-26
A BILL
TO BE ENTITLED
AN ACT
Relating to food banks; to establish an income tax
credit for donations of edible farm products to a qualifying
food bank.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) This act, the purpose of which is to
incentivize farmers and owners of food establishments to
donate certain food products to food banks, shall be known and
may be cited as the "Farm-to-Food Bank Act of 2026."
(b) As used in this act, the following terms have the
following meanings:
(1) DEPARTMENT. The Department of Agriculture and
Industries.
(2) EDIBLE FARM PRODUCTS. Plants and animals useful to
humans for consumption which include, but are not limited to,
forage and sod crops, oilseeds, grain and feed crops, dairy
and dairy products, poultry and poultry products, livestock,
fruits, and vegetables. The products may not be damaged,
out-of-condition, or declared unfit for human consumption by a
federal, state, or local health official.
(3) ELIGIBLE DONOR. A farmer or owner of a food
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(3) ELIGIBLE DONOR. A farmer or owner of a food
establishment.
(4) FARMER. An Alabama taxpayer that meets either of
the following qualifications:
a. Is responsible for and derives income of at least
one thousand dollars ($1,000) from growing fruits, vegetables,
or other edible farm products or from raising beef, poultry,
pork, fish, or other edible agriculture products.
b. Has filed an acreage report with the United States
Department of Agriculture.
(5) FOOD ESTABLISHMENT. As defined by the United States
Food and Drug Administration and adopted by Rule 420-3-22.01
of the Alabama Department of Public Health.
(6) QUALIFYING FOOD BANK. Any entity located within
Alabama that is a partner or affiliate food bank of the
Feeding America national food bank network or their subsidiary
distribution organizations.
(c) A credit is allowed against the state income tax
imposed by Section 40-18-2, Code of Alabama 1975, for eligible
donors who donate edible farm products to a food bank. The tax
credit shall equal the lesser of:
(1) Fifteen percent of the value of the edible farm
products donated during the tax year for which the credit is
claimed. The value of the edible farm products shall be
determined in the same manner as a charitable contribution of
food for federal tax purposes under 26 U.S.C. § 8170(e)(3)(C);
or
(2) Five thousand dollars ($5,000).
(d) The taxpayer claiming a tax credit under this act
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(d) The taxpayer claiming a tax credit under this act
shall not receive remuneration for the donation. The tax
credit must be taken in the tax year in which the taxpayer was
issued a tax credit certificate under subsection (g). The tax
credit issued under this act may not decrease a taxpayer's
liability to less than zero. If the tax liability of the
taxpayer is less than the tax credit issued under this act,
the taxpayer may only utilize the amount of the credit that
reduces the taxpayer's liability to zero. The tax credit is
not refundable nor transferable and may not be carried
forward. A taxpayer applying for the tax credit shall only
apply for the tax credit for the year in which the edible farm
products were donated to a qualifying food bank, regardless of
the tax liability of the taxpayer. Nothing in this section
shall allow any item to be deducted more than once.
(e) The Department of Revenue shall grant the tax
credit against the state income tax that is due by the
taxpayer holding the tax credit certificate issued under
subsection (g) in the amount stated on the tax credit
certificate, subject to the limitations of subsection (d). The
department may audit and reassess any credit improperly
obtained by the taxpayer in accordance with the Alabama
Taxpayers' Bill of Rights and Uniform Revenue Procedures Act,
Chapter 2A of Title 40 of the Code of Alabama 1975.
(f) The tax credit authorized by this act is limited to
an aggregate amount for all taxpayers of two million dollars
($2,000,000) annually.
(g)(1) Prior to claiming the income tax credit
authorized under subsection (c), the taxpayer shall file an
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authorized under subsection (c), the taxpayer shall file an
annual informational report in a manner prescribed by the
department, which includes information of edible farm products
donated, along with additional information as required by the
department. Following the receipt of all information required
by this subsection, the department shall issue a tax credit
certificate to the taxpayer seeking the credit. Tax credit
certificates shall be issued on a first come, first served
basis until the annual cap provided by subsection (f) is met.
In the event the reservations of tax credits equal the total
amount available for reservations during the tax year, all
eligible taxpayers with applications then awaiting approval or
thereafter submitted shall be notified in a manner as
prescribed by the department that no additional tax credits
shall be granted during that tax year and may seek a tax
credit certificate in the next tax year, subject to the
limitations of subsection (d), in an amount equal to the
amount sought but unavailable in the prior tax year plus any
amount otherwise sought for the current tax year.
(2) The department shall submit an annual information
report to the Department of Revenue by January 31, which
includes all certificates issued to taxpayers and any
information needed for tax credit verification.
(h) The department shall prepare a report detailing the
edible farm products donated by farmers and the amount of tax
credits claimed under this act. The information on the report
shall be consistent with the information required under
Section 40-1-50, Code of Alabama 1975, and rules adopted by
the Department of Revenue. Information provided under this act
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the Department of Revenue. Information provided under this act
is exempt from the confidentiality provisions of Section
40-2A-10, Code of Alabama 1975, and shall be provided by the
department to the Legislature in accordance with Section
40-1-50, Code of Alabama 1975, and rules adopted by the
Department of Revenue.
(i) The department and the Department of Revenue may
adopt rules to implement and administer this act.
(j)(1) The tax credit allowed under this act may be
claimed beginning with the 2027 tax year.
(2) This tax credit may not be claimed after tax year
2031.
Section 2. This act shall become effective on June 1,
2026.
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2026.
House of Representatives
Read for the first time and referred
to the House of Representatives
committee on Ways and Means
Education
................13-Jan-26
Read for the second time and placed
on the calendar:
1 amendment
................05-Feb-26
Read for the third time and passed
as amended
Yeas 103
Nays 0
Abstains 0
................10-Feb-26
John Treadwell
Clerk
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