CaliforniaCalifornia extends tax credits for food donations through 2031
Eligible food growers and producers may claim a donation tax credit through 2031, while California continues reporting on its use and keeps a food aid fund open.
What it does
Eligible growers and food producers may claim a tax credit for donating qualifying food to California food banks. The credit applies to donations made for tax years through 2031.
The tax agency must continue reporting how the food donation credits are used, including donated food's value, county of origin, and donation month.
Taxpayers may keep directing extra tax-return contributions to the Emergency Food for Families Fund through 2032, subject to its minimum-contribution rule.
Argument forThe extended tax credit could encourage eligible growers and food makers to donate food, helping food banks receive more supplies.
Argument againstDonors who claim the credit may have less incentive to give if they must reduce another tax deduction by the credit amount.
More detail
California extends the tax credit for eligible food donations. The credit is for eligible growers and food producers who donate qualifying food to a California food bank; retailers are excluded from one category of eligible food producers. The credit is 15% of the qualifying donation's value. Donors must file an original return on time, and claiming the credit reduces a deduction for the same cost. The credit applies to taxable years beginning before January 1, 2032. The section is scheduled for repeal on December 1, 2032.
California continues annual reports on use of the food donation credits. The Franchise Tax Board reports to the Legislature on use of the personal and corporate tax credits for food donations. Reports include the donation value, the county where the food came from, and the month it was donated. The reporting requirement is inoperative on January 1, 2031.
California keeps the Emergency Food for Families tax contribution fund in effect. Taxpayers may designate contributions beyond their personal income tax owed for the Emergency Food for Families Fund. The fund's tax-return listing can become inoperative for a year if expected contributions fall below $250,000. Contributions already designated before repeal must still be transferred and distributed under the fund's rules. The provisions remain in effect for taxable years beginning before January 1, 2033, and are scheduled for repeal on December 1, 2033.
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Where it stands
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 27Chaptered by Secretary of State. Chapter 657, Statutes of 2026.Latest
- Sep 27Approved by the Governor Gavin Newsom.Became Law
- Aug 24Enrolled and presented to the Governor at 3 p.m.To Governor
- Aug 19Assembly amendments concurred in. (Ayes 38. Noes 0. Page 5542.) Ordered to engrossing and enrolling.Major
- Vote recorded Unfinished Business SB881 McNerney et al. Urgency Clause Concurrence. Result: pass.Upper
- Aug 19Urgency clause adopted.Major
- Aug 18In Senate. Concurrence in Assembly amendments pending.
- Aug 17Read third time. Urgency clause adopted. Passed. (Ayes 74. Noes 0. Page 6208.) Ordered to the Senate.Passed Assembly
- Vote recorded SB 881 McNerney Third Reading Urgency By Soria. Result: pass.Lower
- Aug 13Read second time. Ordered to third reading.Minor
- Vote recorded Do pass. Result: pass.Lower
- Aug 13From committee: Do pass. (Ayes 15. Noes 0.) (August 13).Minor
- Aug 13Assembly Rule 63 suspended.
- Aug 5August 5 set for first hearing. Placed on suspense file.
- Jul 1Read second time and amended. Re-referred to Com. on APPR.Major
- Jun 30From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (June 29).Major
- Jun 29
- Vote recorded Do pass as amended and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Jun 15June 15 set for first hearing. Placed on suspense file.
- Jun 4From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.Major
- May 26Referred to Com. on REV. & TAX.Minor
- May 20In Assembly. Read first time. Held at Desk.Minor
- May 19Read third time. Passed. (Ayes 39. Noes 0. Page 4350.) Ordered to the Assembly.Passed Senate
- Vote recorded 3rd Reading SB881 McNerney et al. Result: pass.Upper
- May 18Read second time. Ordered to third reading.Minor
- May 14Read second time and amended. Ordered to second reading.Major
- Vote recorded Do pass as amended. Result: pass.Upper
- May 14From committee: Do pass as amended. (Ayes 7. Noes 0. Page 4255.) (May 14).Major
- May 8Set for hearing May 14.
- Apr 13April 13 hearing: Placed on APPR. suspense file.
- Vote recorded Placed on suspense file. Result: pass.Upper
- Mar 27Set for hearing April 13.
- Mar 25From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 5. Noes 0. Page 3691.) (March 25). Re-referred to Com. on APPR.Minor
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar. Result: pass.Upper
- Mar 11Set for hearing March 25.
- Feb 11Referred to Com. on REV. & TAX.Minor
- Jan 13From printer. May be acted upon on or after February 12.
- Jan 12Introduced. Read first time. To Com. on RLS. for assignment. To print.Introduced
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