House Bill 175 Alabama 2026 Session

Summary

Primary Sponsor

Ben RobbinsRepresentative

Republican

Session

2026 Regular Session

Title

Income tax; credit for donation to food banks.

Summary

Alabama creates a Farm-to-Food Bank tax credit for donations of edible farm products by eligible farmers to qualifying food banks, with a capped, time-limited benefit.

What This Bill Does

If enacted, eligible farmers could claim a state income tax credit for donating edible farm products to a qualifying Alabama food bank. The credit equals the lesser of 15% of the donated value or $5,000 for the tax year, with the value determined for federal tax purposes. The credit is nonrefundable, cannot reduce tax liability below zero, cannot be carried forward or transferred, and can only be used in the year the donation occurred. There is an annual cap of $2,000,000 on total credits, awarded on a first-come, first-served basis from 2027 through 2031; the program becomes effective June 1, 2026.

Who It Affects

• Eligible farmers or owners of food establishments who donate edible farm products to qualifying food banks — may receive a tax credit for their donation (subject to annual and program limits).
• Qualifying food banks in Alabama (and their Feeding America network partners) — may receive more donated edible farm products from farmers, increasing food available for distribution.

Key Provisions

• Establishes the Farm-to-Food Bank Act of 2026 and defines key terms (edible farm products, eligible donor, farmer, food establishment, qualifying food bank).
• Provides a state income tax credit for donations to qualifying food banks; credit amount is the lesser of 15% of donated value or $5,000; value determined as a charitable contribution under federal tax rules.
• Credit is nonrefundable, non-transferable, cannot reduce tax liability below zero, cannot be carried forward, and applies only to the tax year in which the donation occurred; a taxpayer may not double-deduct.
• Annual aggregate credit cap of $2,000,000; credits issued on a first-come, first-served basis until the cap is met; if the cap is reached, applicants are notified and may apply in the next year.
• Donors must file an annual informational report; the Department of Revenue issues a tax credit certificate after review; the department may audit and reassess improper credits.
• Credits may be claimed beginning with the 2027 tax year and may not be claimed after the 2031 tax year.
• Effective date is June 1, 2026; rules may be adopted to implement and administer the act.
• Qualifying food banks are Alabama entities that are partners or affiliates of Feeding America or their distribution organizations.

AI-generated summary using openai/gpt-5-nano on Feb 11, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation & Revenue