HB321 Alabama 2025 Session

Summary

Primary Sponsor

Ben RobbinsRepresentative

Republican

Session

2025 Regular Session

Title

Relating to income tax; to provide a credit for donation of certain food items

Summary

HB321 would create a temporary Alabama income tax credit for farmers who donate edible farm products to qualifying food banks to encourage charitable donations of food.

What This Bill Does

The bill establishes a state income tax credit for eligible donors who donate edible farm products to qualifying food banks. The credit amount is the lesser of 15% of the donated value or $5,000 per donor, with a $2,000,000 annual cap on total credits; the donation value is calculated as for federal charitable food contributions. The credit is nonrefundable, nontransferable, cannot reduce tax liability below zero, and must be claimed in the donation year; credits are issued via certificates on a first-come, first-served basis and are subject to annual reporting and audit. The program runs for tax years 2026 through 2030, with administration and rules to be set by the Department of Revenue and related agencies; eligibility includes being an Alabama taxpayer who donates to a qualifying food bank, and the act becomes effective October 1, 2025.

Who It Affects

• Eligible donors: Alabama farmers or owners of food establishments who donate edible farm products to qualifying food banks; they may receive a nonrefundable tax credit up to 15% of the donated value or $5,000 per year, subject to the $2,000,000 annual cap and other rules.
• Qualifying food banks: Organizations that qualify under the bill can receive donated edible farm products from eligible donors, potentially increasing the amount of food available for assistance.

Key Provisions

• Establishes the Farm-to-Food Bank Act of 2025 and a state income tax credit for donations of edible farm products to qualifying food banks.
• Credit amount capped at the lesser of 15% of donated value or $5,000 per donor, with a $2,000,000 annual aggregate cap for all taxpayers; value determined like federal charitable food contributions under 26 U.S.C. §170(e)(3)(C).

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