Alabama HB175 establishes an income tax credit for farmers donating edible farm products to food banks.

Alabama HB175, the "Farm-to-Food Bank Act of 2026," creates an income tax credit for farmers donating edible farm products to qualifying food banks. The credit is the lesser of 15% of the donation's value or $5,000, and it applies to donations made between the 2027 and 2031 tax years. The credit cannot reduce a taxpayer's liability below zero, is not refundable, and cannot be carried forward. The annual credit limit is $2 million.

Alabama HB175 establishes an income tax credit for farmers donating edible farm products to food banks.

Alabama HB175, the "Farm-to-Food Bank Act of 2026," creates an income tax credit for farmers donating edible farm products to qualifying food banks. The credit is the lesser of 15% of the donation's value or $5,000, and it applies to donations made between the 2027 and 2031 tax years. The credit cannot reduce a taxpayer's liability below zero, is not refundable, and cannot be carried forward. The annual credit limit is $2 million.