HB321 Summary

• Establishes the "Farm-to-Food Bank Act of 2025" to create an Alabama income tax credit for farmers and food establishment owners who donate edible farm products to qualifying food banks.

• Tax credit equals the lesser of 15% of the donated product value (calculated under federal tax law standards) or $5,000 per taxpayer annually.

• Eligible donors must be Alabama taxpayers who either derive at least $1,000 in annual farm income or have filed a crop acreage report with the USDA; donated products must be edible and not damaged or declared unfit for human consumption.

• Credit is capped at $2,000,000 annually statewide and distributed on a first-come, first-served basis through a tax credit certificate issued by the Department of Revenue; credits are non-refundable, non-transferable, and cannot be carried forward.

• Tax credit is available for tax years beginning January 1, 2026 through December 31, 2030; legislation becomes effective October 1, 2025.