AN ACT RELATING TO TAXATION -- TAX CREDIT FOR FOOD DONATION (Provides a tax credit for food donations by qualified taxpayers to nonprofit organizations up to five thousand dollars ($5,000) per year.)

S2447

2026 -- S 2447
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO TAXATION -- TAX CREDIT FOR FOOD DONATION

Introduced By:
Senators Kallman, Valverde, DiPalma, Murray, Lauria, Euer, Ujifusa,
Acosta, Zurier, and Tikoian

Date Introduced:
February 06, 2026

Referred To:
Senate Finance
It is enacted by the General Assembly as follows:
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SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by
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adding thereto the following chapter:
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CHAPTER 33.7
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TAX CREDIT FOR FOOD DONATION
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44-33.7-1. Definitions.
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As used in this chapter:
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(1) "Apparently wholesome food" means food that is fit for human consumption at the time
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it was donated as long as it meets all safety and safety-related standards required by federal, state,
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and local laws regardless of compliance with any laws, rules or ordinances regulating the packaging
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or labeling of food which are not linked to food safety. "Apparently wholesome food" as stipulated
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in the Bill Emerson Good Samaritan Food Donation Act (42 U.S.C. § 1791) is defined as "food
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that meets all quality and labeling standards imposed by federal, state, and local laws and
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regulations, even though the food may not be readily marketable due to appearance, age, freshness,
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grade, size, surplus, or other conditions." "Apparently wholesome food" does not include canned
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goods that are leaking, swollen, dented on a seam, or no longer airtight.
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(2) "Donate" means to give without requiring anything of monetary value from the
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recipient, except that the term shall include giving food, notwithstanding that the donor receives or
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charges a Good Samaritan reduced price.
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(3) "Division" means the division of taxation.

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(4) "Good Samaritan reduced price" means a price that is an amount not greater than the
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cost of handling, administering, harvesting, processing, packaging, transporting, and distributing
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the apparently wholesome food.
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(5) "Nonprofit organization" means a nonprofit organization that is exempt from federal
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taxation pursuant to § 501(c)(3) of the Federal Internal Revenue Code, 26 U.S.C. § 501(c)(3) that:
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(i) Operates for religious, charitable, or educational purposes;
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(ii) Does not provide net earnings to, or operate in any other manner that inures to the
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benefit of, any officer, employee, or shareholder of the entity; and
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(6) "Qualified taxpayer" means a corporation, partnership, organization, or association,
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including a food producer, retail grocer, wholesaler, hotel, motel, manufacturer, restaurant, caterer,
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farmer, nonprofit food distributor, or hospital.
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44-33.7-2. Credit for food donation.
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(a) For taxable years beginning on or after January 1, 2027, any qualified taxpayer that
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donates apparently wholesome food to a nonprofit organization shall be allowed a credit to be
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computed as provided in this chapter against a tax imposed by chapters 11, 14, 17, and 30 of this
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title, for the taxable year of the donation. The qualified taxpayer shall be allowed a credit in an
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amount equal to seventy-five percent (75%) of the fair market value of such apparently wholesome
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food. This credit shall not exceed five thousand dollars ($5,000) per tax year.
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(b) Credits shall be allowed under this section only if:
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(1) The use of the donated food by the donee nonprofit organization is related to providing
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food to the needy; and
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(2) The donated food, if sold by the donee nonprofit organization, is provided to or sold to
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the needy or other nonprofit organizations that intend to use the food to provide food to the needy
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at no cost or at a Good Samaritan reduced price.
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(c) Upon receipt of the donated food, the nonprofit organization shall provide a certificate
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to the qualified taxpayer, which shall contain the name of the qualified taxpayer, the name and
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address of the donee nonprofit organization, the date of the donation, the type and quantity of
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donated food, and, as provided by the qualified taxpayer, the fair market value of the donated food.
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The certificate shall also include a statement by the donee nonprofit organization that its use and
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disposition of the donated food complies with the requirements under subsection (b) of this section.
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The certificate shall also include a statement by the donee nonprofit organization that the donation
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meets the definition of apparently wholesome food.
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(d) For every taxable year for which a qualified taxpayer seeks a tax credit under this
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chapter, the person shall apply to the division in accordance with the forms, instructions, dates, and

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procedures prescribed by the division.
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44-33.7-3. Limit on tax credit.
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(a) The amount of the credit claimed under § 44-33.7-2(a) shall not exceed the total amount
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of tax imposed upon the qualified taxpayer for the taxable year. Any credit not usable for the taxable
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year for which the credit was first allowed may be carried over for credit against the income taxes
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of the qualified taxpayer in the next five (5) succeeding taxable years or until the total amount of
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the tax credit has been taken, whichever is sooner.
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(b) Credits granted to a partnership, limited liability company, or electing small business
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corporation (S corporation) shall be allocated to the individual partners, members, or shareholders,
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respectively, in proportion to their ownership or interest in such business entities.
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(c) Any tax credits claimed shall not reduce a corporation's tax liability below the state
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corporate minimum tax. Pursuant to chapter 14 of title 44, any tax credits claimed shall not reduce
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the tax liability of a bank below the bank excise minimum tax.
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44-33.7-4. Promulgation of rules and regulations.
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(a) The division shall be authorized to develop guidelines, rules or regulations
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implementing the provisions of this chapter. The guidelines, rules and regulations shall include
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procedures for the allocation of tax credits among qualified taxpayers.
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(b) The division shall not be responsible for determining whether a donation consists of
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apparently wholesome food.
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44-33.7-5. Reporting requirements.
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Using information available to the division, the division shall report to the general
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assembly, annually, through the division of taxation’s testimony at a revenue estimating
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conference, regarding the use of the credit authorized under this chapter. The report shall include,
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at a minimum, the credits generated in the taxable year, the credits claimed in the taxable year, and
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the number of qualified taxpayer claimed credits.
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SECTION 2. This act shall take effect on January 1, 2027.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO TAXATION -- TAX CREDIT FOR FOOD DONATION
***
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This act would provide a tax credit for food donations by qualified taxpayers to nonprofit
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organizations up to five thousand dollars ($5,000) per year.
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This act would take effect on January 1, 2027.
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