During the 2016 General Assembly session, Virginia Farm Bureau supported legislation that created an income tax credit for farmers who make food crop donations to a food bank. The guidelines have been released for the program and can be viewed online here.
The new tax credit would equal 30% of the fair market value of the food crops donated by the person during the taxable year not to exceed an aggregate of $5,000 for any taxable year. The bills defined food crops as grains, fruits, nuts, or vegetables. This new tax credit should help encourage more farmers to donate some of their crop to local food banks to help feed the hungry.
To receive the Food Crop Donation Tax Credit, donors must apply to the Department by completing Form FCD-1, which is available to download from the Department’s website www.tax.virignia.gov. This form and any supporting documentation must be completed and mailed no later than February 1 of the year following the taxable year during which the donations were made.
The patrons of the legislation that created the program were Senator Creigh Deeds of Bath (SB580) and Delegate Ben Cline of Rockbridge (HB1093). The bills were also championed by First Lady Dorothy McAuliffe as part her effort to help prevent hungry children.
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