HB119 Summary

• Establishes an Alabama income tax credit for farmers who donate edible farm products to qualifying food banks, equal to the lesser of 15% of the donation value or $5,000 per tax year.

• Defines eligible farmers as Alabama taxpayers deriving at least $1,000 in income from growing fruits, vegetables, or raising livestock, and who have filed an acreage report with the U.S. Department of Agriculture.

• Limits the aggregate statewide credit to $2,000,000 annually, with certificates issued on a first-come, first-served basis by the Department of Revenue.

• Specifies that the credit is non-refundable, non-transferable, and cannot be carried forward; requires farmers to file an annual informational report before claiming the credit.

• Tax credit is effective January 1, 2025, through the 2032 tax year unless extended by the Legislature; the act becomes effective October 1, 2024.