Removes the sunset provisions of the "Donated Food" food pantry tax credit
Summary
HB 1782 revises Missouri’s food pantry tax credit statute by repealing and reenacting section 135.647. The bill keeps the existing tax credit for donations of cash or food to qualifying local food pantries and expands the program to include donations to local soup kitchens and local homeless shelters. Under the bill, eligible taxpayers may claim a credit equal to 50% of the value of qualifying donations, subject to documentation requirements, a per-taxpayer cap of $2,500, and a statewide annual cap of $1.75 million in total credits.
The bill defines the types of charitable organizations that qualify, generally requiring them to be 501(c)(3) entities serving low-income or homeless individuals in the taxpayer’s local area. It also specifies valuation rules for donated food, allows unused credits to carry forward for three years, prohibits transfer or sale of credits, and bars eligibility for taxpayers who employ unauthorized workers. The Department of Revenue is directed to promulgate implementing rules.
Impact
HB 1782 would amend Missouri tax law in chapter 135 by broadening and continuing the food donation tax credit program and removing the sunset provision that would otherwise cause the credit to expire. It affects individual and business taxpayers subject to Missouri income tax, as well as qualifying food pantries, soup kitchens, and homeless shelters that receive donations. The bill also preserves administrative controls such as the annual statewide cap, per-taxpayer limit, affidavit requirement, and Department of Revenue rulemaking authority.
Sentiment
The available context suggests generally favorable sentiment toward the bill, consistent with its charitable purpose and the caption indicating it removes the sunset provisions of the donated food tax credit. No committee transcript or recorded votes were provided, so there is no evidence of formal opposition in the materials supplied. The bill appears to have been framed as a continuation and expansion of an existing incentive rather than a controversial new program.
Contention
The main policy questions raised by the bill are likely to concern the cost of the tax credit, because the measure preserves a statewide cap of $1.75 million annually and makes the credit permanent by removing the sunset. Another possible point of contention is the scope of eligibility, since the bill expands the credit beyond food pantries to include soup kitchens and homeless shelters, which broadens the fiscal impact. Administrative issues may also arise around valuation of donated food, verification of donations, and the restriction denying credits to taxpayers who employ unauthorized workers.