Tax Credit for Food Donations: New Incentive to Fight Hunger.
This law introduces a new tax credit allowing individuals and businesses to directly reduce their income tax liability when donating cash or wholesome food to eligible hunger-relief organizations. Unlike a standard deduction, this credit provides a dollar-for-dollar reduction in taxes owed, making charitable giving more financially rewarding. It also allows taxpayers to include vehicle mileage costs incurred while delivering the donated food.
Key points
Taxpayers can claim a direct tax credit (reducing taxes owed) for donating cash or food to qualified food banks and soup kitchens.
The credit amount can include the standard mileage rate for using a vehicle to deliver the donated food.
If you claim this credit, you cannot also claim a tax deduction for the same donation amount.
Status:
Introduced
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