Provides a tax credit for food donations by qualified taxpayers to nonprofit organizations up to five thousand dollars ($5,000) per year.

Rhode Island Food Donation Tax Credit Bill

This bill would create a new tax credit in Rhode Island that rewards people and businesses for donating food to nonprofit organizations. Instead of just being able to deduct a food donation from their taxable income (which reduces how much income gets taxed), this credit would directly reduce the amount of taxes owed — which is generally a stronger financial benefit. The credit would be capped at $5,000 per year for any single taxpayer who qualifies.

The bill would affect Rhode Island residents and businesses — referred to as "qualified taxpayers" — who donate food to eligible nonprofit organizations, such as food banks, shelters, or other charitable groups that distribute food to people in need. For example, a restaurant owner, grocery store, or farmer who donates surplus food could receive a direct reduction on their state tax bill based on the value of those donations, up to the $5,000 limit.

The practical effect of this bill would be twofold: it would give donors a meaningful financial incentive to donate food rather than discard it, and it could help increase the supply of food available to nonprofits that serve people experiencing food insecurity. By making food donation more financially attractive, the bill aims to reduce waste while supporting Rhode Islanders who rely on food assistance programs.

The bill has been introduced and referred to the House Finance Committee, meaning it is still in the early stages of the legislative process and has not yet been voted on.