Minnesota Senate Bill SF3924

Minnesota 2025-2026 Regular Session

• Introduced: 2/26/26
• Refer: 2/26/26

Caption

Credit for farmers who donate food to a food shelf establishment

Summary

SF3924 creates a new Minnesota income and corporate franchise tax credit for farmers who donate food they produced to a qualifying food shelf. The credit equals 85% of the value of qualifying in-kind food donations, with the donation value determined under federal charitable contribution rules. The bill defines who qualifies as a farmer and what counts as a food shelf, and it applies to food donations that are otherwise eligible for the federal charitable deduction. The credit is nonrefundable, may be carried forward for up to five taxable years, and is limited to 50% of the real property taxes paid by the taxpayer in the year the credit is claimed. The bill also prevents double benefits by prohibiting the same donation from being used for any other state income tax deduction or credit. Special allocation rules are included for partnerships, LLCs taxed as partnerships, S corporations, multiple owners, and nonresidents or part-year residents. The credit would take effect for taxable years beginning after December 31, 2025.

Impact

The bill would add a new section to Minnesota Statutes chapter 290 establishing a targeted tax incentive for agricultural producers who donate food to food shelves. It would reduce state income and corporate franchise tax liability for eligible farmers, while also affecting how charitable food donations are valued, allocated, and claimed for tax purposes. The measure is designed to encourage more food donations from farmers and increase supplies for food shelf organizations without allowing the same donation to generate multiple state tax benefits.

Sentiment

Based on the bill text and the absence of recorded committee testimony or votes, the overall sentiment appears supportive and policy-driven, with the bill framed as a charitable and anti-hunger measure. The proposal is narrowly targeted to farmers and food shelves, suggesting an effort to build practical support by linking agricultural tax relief with food insecurity relief. No formal opposition, amendments, or recorded controversy are available in the provided materials.

Contention

The main potential points of contention are the fiscal cost of the new tax credit, the 85% credit rate, and the 50% property-tax cap, which may be viewed as either appropriately targeted or too generous depending on perspective. Another possible issue is administrative complexity, including valuation of donated food, pass-through treatment for entities, and coordination with federal charitable deduction rules. Because the bill text and available history contain no committee debate or votes, no specific opponents or supporters are identified in the record provided.