Farm To Food Donation Tax Credit

In the 2013 legislative session the Iowa Legislature approved the Farm to Food Donation Tax Credit program. This program establishes a tax credit for farmers who donate self-produced food commodities to food banks and food pantries in an amount equaling the lesser of $5,000 or 15% of the value of the commodities donated during the tax year for which the credit is claimed.  The tax credit is available beginning in tax year 2014.

Local food organizations must register with the Iowa Department of Revenue to be recognized as an authorized distributor of Farm to Food Tax Credit Donation Receipts.  Without these authorized receipts, donors will not be able to claim their tax credit with Iowa Department of Revenue.  In order to register with the Iowa Department of Revenue, local food organizations are encouraged to utilize our online registration tool: Registration for Food Banks and Food Pantries.

Registered Farm to Food Donation Organizations

 

Frequently Asked Questions - For Taxpayers

What is the Farm to Food Donation Tax Credit?

Who can claim the Farm to Food Donation Tax Credit?

What is the value of the Farm to Food Donation Tax Credit?

What is a qualifying food commodity?

How do I value my food donation?

To which taxes does the Farm to Food Donation Tax Credit apply?

Can the value of the donated food also be claimed as an itemized deduction for Iowa income tax?

How does a taxpayer get the tax credit certificate from Iowa Department of Revenue?

How do taxpayers find a registered Iowa food bank or food pantry or Iowa emergency feeding organization?

Are these tax credits refundable?

Where in the Code of Iowa can I find more information about the Farm to Food Donation Tax Credit?

Frequently Asked Questions - For Emergency Food Organizations

What is the Farm to Food Donation Tax Credit?

What is the value of the Farm to Food Donation Tax Credit?

Who awards the Farm to Food Donation Tax Credit?

What is a qualifying food commodity?

How does an Iowa food bank or food pantry or Iowa emergency feeding organization register with the Department of Revenue?

What records do participating food organizations need to keep?

FAQ's For Taxpayers

 

What is the Farm to Food Donation Tax Credit?

A tax credit is available to taxpayers that produce a food commodity and donate it to a registered Iowa food bank or food pantry or an Iowa emergency feeding organization.

Who can claim the Farm to Food Donation Tax Credit?

Individual taxpayers and C corporations may be awarded this tax credit, as well as Individual members of a partnership, limited liability company, S corporation, estate, or trust electing to have income taxed directly to the individual shall claim the credit based upon the pro rata share of their earnings from the business entity.

What is the value of the Farm to Food Donation Tax Credit?

The tax credit is equal to 15% of the value of the food commodities donated in the tax year as reported on authorized receipts to the Department of Revenue (IDR) and valued according to the federal guidelines for charitable contribution of food under the Internal Revenue Code section 170(e)(3)(c), or $5,000, whichever is less.

What is a qualifying food commodity?

“Apparently wholesome food”, meaning food that meets all quality and labeling standards imposed by Federal, State, and local laws and regulations even though the food may not be readily marketable due to appearance, age, freshness, grade, size, surplus, or other conditions. The donated food may not be damaged, out of condition, or unfit for human consumption. A food commodity that meets the requirements for donated foods pursuant to the Federal Emergency Food Assistance Program satisfies this requirement.

How do I value my food donation?

The value of the donation is specified by the donor and must reflect the market value of the food at the time of the donation using the guidelines set forth in IRS regulation 1.170A-13(b).  Please utilize the valuation worksheet available here.

To which taxes does the Farm to Food Donation Tax Credit apply?

The Farm to Food Donation Tax Credit can be applied to corporate income and individual income taxes.

Can the value of the donated food also be claimed as an itemized deduction for Iowa income tax?

No, the value of the donation for which the tax credit is claimed cannot be included as a charitable contribution on the Iowa tax return, however, the value of the donation may be included as a charitable contribution on the Federal tax return.

How does a taxpayer get the tax credit certificate from Iowa Department of Revenue?

Taxpayers must receive an authorized food organization receipt when they make their donation to the registered Iowa food bank or food pantry or Iowa emergency feeding organization.  All authorized receipts should be sent together if multiple donations are made throughout the year and must be postmarked by January 15 of the year following the tax year in which the donation was made.

How do taxpayers find a registered Iowa food bank or food pantry or Iowa emergency feeding organization?

A list of registered organizations and contact informatino will be provided on this web page as soon as it becomes available.

Are these tax credits refundable?

Credits are not refundable.  Any credit in excess of the tax liability may be carried forward for up to five years.

Where in the Code of Iowa can I find more information about the Farm to Food Donation Tax Credit?

Section 190B.01 through 190B.306 (program description); Section 422.11E (individual income tax; and Section 422.33 (30) (corporate income tax). Search for these sections of the Iowa Code at the website for the Iowa Legislature.

FAQ's For Food Organizations

What is the Farm to Food Donation Tax Credit?

A tax credit is available to taxpayers that produce a food commodity and donate it to a registered Iowa food bank or food pantry or an Iowa emergency feeding organization.

What is the value of the Farm to Food Donation Tax Credit?

The tax credit is equal to 15% of the value of the food commodities donated or $5,000, whichever is less.

Who awards the Farm to Food Donation Tax Credit?

The Iowa Department of Revenue (IDR) will issue tax credit certificates based on authorized food donation receipts issued by registered emergency food organizations and submitted to IDR by donors.

What is a qualifying food commodity?

“Apparently wholesome food”, meaning food that meets all quality and labeling standards imposed by Federal, State, and local laws and regulations even though the food may not be readily marketable due to appearance, age, freshness, grade, size, surplus, or other conditions. The donated food may not be damaged, out of condition, or unfit for human consumption. A food commodity that meets the requirements for donated foods pursuant to the Federal Emergency Food Assistance Program satisfies this requirement.

How does an Iowa food bank or food pantry or Iowa emergency feeding organization register with the Department of Revenue?

IDR has an online registration tool. Organizations can also email contact John Good with IDR, or call (515) 725-2324 for registration assistance. Once an organization is registered, IDR will provide the organization with their authorized food donation receipts.

What records do participating food organizations need to keep?

In addition to issuing the authorized food donation receipts to the taxpayers making the donations, a spreadsheet which tracks the issued food donation receipts issued will also need to be maintained. This spreadsheet will need to be submitted to IDR no later than January 15, 2015.