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

Rhode Island Tax Credit for Food Donations

This bill would create a new tax benefit in Rhode Island for people and businesses that donate food to nonprofit organizations. Specifically, it would allow "qualified taxpayers" — meaning individuals or businesses who meet certain criteria — to receive a tax credit of up to $5,000 per year for food they donate. A tax credit directly reduces the amount of taxes someone owes, making it more valuable than a standard tax deduction.

The bill is designed to encourage more food donations to nonprofit groups, such as food banks, soup kitchens, and other charitable organizations that help feed people in need. By offering a financial incentive, the bill aims to reduce food insecurity in Rhode Island while also potentially helping reduce food waste, since businesses with surplus food would have a stronger reason to donate it rather than discard it.

This bill would primarily affect taxpayers — both individuals and businesses — who have the ability to donate food and want to lower their Rhode Island tax bill. Nonprofit organizations that accept food donations could also benefit, as the credit may lead to an increase in the quantity of food they receive. Rhode Island's government would see a reduction in tax revenue as a result of these credits, though the actual cost would depend on how many taxpayers take advantage of the program.

The bill has been introduced and referred to the Senate Finance Committee, where it will be reviewed before any further legislative action is taken.