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SB 2447

AN ACT RELATING TO TAXATION -- TAX CREDIT FOR FOOD DONATION

2026 Regular Session Introduced by Jonathon Acosta and 9 co-sponsors

Rhode Island offers a 75% tax credit on donated apparently wholesome food, up to $5,000 per donor per year, to nonprofits aiding the needy.

05/05/2026 Committee recommended measure be held for further study
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Bill Summary · SB 2447

Summary of Bill SB 2447 (Rhode Island, 2026)

What the bill does (Purpose and intent)

  • SB 2447 establishes a state tax credit for food donations to nonprofit organizations.
  • The credit is available for tax years beginning on or after January 1, 2027.
  • The goal is to incentivize qualified taxpayers (e.g., food producers, retailers, hotels, manufacturers, restaurants, nonprofits, etc.) to donate apparently wholesome food to help feed the needy.

Key provisions and changes

Definition and scope

  • Introduces Chapter 33.7 in Title 44 (Taxation) to define terms:
    • "Apparently wholesome food": Food fit for human consumption at donation time, meeting all applicable safety and labeling standards; excludes leaking, swollen, dented, or no longer airtight canned goods.
    • "Donate": Giving food without requiring monetary value from the recipient; includes donations where the donor accepts a Good Samaritan reduced price.
    • "Good Samaritan reduced price": Price not greater than the donor’s costs (handling, processing, packaging, transport, etc.) to make the food available.
    • "Nonprofit organization": A 501(c)(3) entity engaging in religious, charitable, or educational work and avoiding private inurement.
    • "Qualified taxpayer": A broad set of potential donors, including food producers, retailers, wholesalers, hotels, manufacturers, restaurants, caterers, farmers, nonprofit distributors, or hospitals.

Tax credit details (44-33.7-2)

  • Credit amount: 75% of the fair market value of the donated apparently wholesome food.
  • Annual cap: Up to $5,000 per qualified taxpayer per tax year.
  • Eligibility conditions for the credit:
    1. The donated food is used by the nonprofit to provide food to the needy.
    2. If the nonprofit sells the donated food, proceeds must go to or be used by the needy or other nonprofits that provide food to the needy at no cost or at a Good Samaritan reduced price.
  • Documentation: Donor must receive a certificate from the nonprofit containing:
    • Donor and donee details, donation date, type/quantity of donated food, and the donor’s estimated fair market value.
    • A statement from the donee that the food meets the "apparently wholesome" definition and complies with the aforementioned use restrictions.
  • Application: Donors must apply to the Rhode Island Division of Taxation using the division’s forms and procedures for each taxable year they seek the credit.

Credit limitations and transferability (44-33.7-3)

  • The credit cannot exceed the taxpayer’s total tax liability for the year.
  • Unused credits may be carried forward for up to five subsequent tax years (or until the full amount is utilized), whichever comes first.
  • In partnerships, LLCs, or S corporations, credits pass through to individual partners, members, or shareholders pro rata.
  • Credits cannot reduce a corporate tax liability below the minimum tax obligations (corporate minimum tax for corporations; bank excise minimum tax for banks).

Administration and reporting (44-33.7-4 and 44-33.7-5)

  • The Division of Taxation can issue guidelines and rules, including how to allocate credits among taxpayers.
  • The Division is not responsible for determining whether a donation qualifies as apparently wholesome food.
  • Annual reporting to the General Assembly (via the revenue-estimating conference) on:
    • Credits generated and claimed in the year
    • Number of qualified taxpayers claiming credits

Who is affected

  • Qualified taxpayers: A broad category of donors (food producers, retailers, wholesalers, hotels, motels, manufacturers, restaurants, caterers, farmers, nonprofit distributors, hospitals, etc.) that donate apparently wholesome food.
  • Nonprofit organizations: Receive donated food and issue the required certificates; must use donations to aid the needy and comply with the "Good Samaritan" price and use rules.
  • Rhode Island Division of Taxation: Administers the credit, processes applications, and issues guidelines; provides annual reporting to the General Assembly.
  • General public/needy populations: Potentially increased access to donated food due to incentivized donations.

Timing and procedural notes

  • Effective date: January 1, 2027.
  • Tax years affected: Credits begin for donations made in tax years starting on or after January 1, 2027.
  • Carryforward: Credits usable for up to five future years if not fully utilized in the initial year.
  • Rules: The Division will issue regulations and guidelines but will not determine what qualifies as apparently wholesome food.
  • Reporting: Annual fiscal-revenue reporting to lawmakers on credit activity.

Observations

  • The credit is relatively generous (75% of fair market value) but capped at $5,000 per donor per year.
  • The structure emphasizes ensuring donations are used to aid the needy and that any sale by the recipient nonprofit supports the same charitable aims.
  • The bill balances tax incentive with safeguards to prevent improper use (documentation, use restrictions, and minimum tax considerations).

Compiled from official sources — confirm details with the bill’s official record.

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