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HB 175

Income tax; credit for donation to food banks.

2026 Regular Session Introduced by Ben Robbins

HB 175 allows Alabama taxpayers to claim income tax credits for charitable donations to food banks, incentivizing private funding for food security programs.

Third Reading in House of Origin
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WeVote Research Nonpartisan
Bill Summary · HB 175

Legislative bill overview

HB 175 creates a state income tax credit for individuals and businesses that donate to food banks in Alabama. The credit would allow taxpayers to reduce their state income tax liability based on qualifying charitable contributions to food bank organizations. This incentivizes private funding for food security programs through the tax code.

Why is this important

Food insecurity affects approximately 1 in 10 Alabamians, and food banks rely heavily on donations to operate. By using tax incentives, the state can encourage private charitable giving while reducing its direct budget obligations for food assistance programs. This approach shifts some operational funding burden from state government to taxpayers willing to support food banks.

Potential points of contention

  • Revenue impact: Tax credits reduce state general fund revenue; fiscal analysis would clarify whether projected donations offset this cost
  • Equity concerns: Tax credits primarily benefit higher-income taxpayers who itemize deductions and have tax liability to offset, potentially favoring wealthier donors over low-income supporters
  • Program accountability: The bill's specifics on which food banks qualify, credit caps, and documentation requirements will determine effectiveness and prevent potential abuse

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

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