HB119 Alabama 2024 Session

Summary

Primary Sponsor

Ben RobbinsRepresentative

Republican

Session

Regular Session 2024

Title

Income tax; credit for donation to food banks.

Summary

HB119 would create a state income tax credit for Alabama farmers who donate edible farm products to qualifying food banks, with limits and administration rules.

What This Bill Does

Creates a nonrefundable Alabama income tax credit for donations of edible farm products to qualifying food banks. The credit is the lesser of 15% of the donated value or $5,000 per taxpayer per year, with a $2,000,000 annual cap for all credits and value determined like a federal charitable contribution (IRC 170(e)(3)(c)). The credit cannot reduce tax liability below zero, must be taken in the year of donation, and is not refundable or transferable or carryable. Donors must file an annual informational report and receive a tax credit certificate; credits are awarded on a first-come, first-served basis, with administration by the Department of Revenue and related agencies, and the program runs from 2025 through 2032 unless extended.

Who It Affects

• Farmers who donate edible farm products to qualifying food banks: may reduce their Alabama income tax by up to the credit amount, subject to caps and reporting.
• Qualifying food banks and state agencies (Department of Revenue and Department of Agriculture and Industries) involved in implementing and monitoring the program; food banks may see more donated product, agencies audit and enforce rules.

Key Provisions

• Establishes a nonrefundable Alabama income tax credit for donations of edible farm products to qualifying food banks, equal to the lesser of 15% of the donated value or $5,000 per taxpayer per year, with a $2,000,000 annual cap across all taxpayers and value determined like a federal charitable contribution rules (IRC 170(e)(3)(c)).
• Requires donors to file an annual informational report and for the Department of Revenue to issue a tax credit certificate on a first-come, first-served basis until the annual cap is met; credits cannot exceed tax liability, are not transferable or refundable, cannot be carried forward, and the program is effective for 2025 through 2032 (enactment effective October 1, 2024).

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation & Revenue