Food Bank, Food Pantry, Food Rescue Donation FAQs

Any amount of food donations or qualifying agricultural food donations claimed as a charitable contribution under the Internal Revenue Code of 1986, amended, on the taxpayer’s federal income tax return must be added back in the determination of Nebraska taxable income before the credit can be claimed. 

Only those pass-through entities that elect to be subject to Nebraska income tax can take the credit. The credit cannot be distributed to the owners of a pass-through entity.

Yes. There is a statutory limit of $500,000 that DOR may approve for this tax credit for each State fiscal year starting with fiscal year 2025-26. If the total amount of credits requested by all qualified taxpayers exceeds this limit, DOR must allocate the credits proportionally based on the amounts requested so the limit is not exceeded.

The taxpayer may file for an extension or file the original return without claiming the credit and then file an amended tax return once notification of the certified tax credit amount is received. 

No.

An individual or entity whose income is primarily from crop or livestock production in Nebraska.

A retailer that is primarily engaged in business activities classified as code 445110 under the North American Industry Classification System (NAICS) and is located in Nebraska.

A business that is primarily engaged in business activities classified as code 722511, 722513, 722514, or 722515 under the NAICS and is located in Nebraska.

A food bank is an organization in Nebraska that distributes food in 10 or more counties in Nebraska, qualifies for the Emergency Food Assistance Program administered by the U.S. Department of Agriculture, and is exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code of 1986, as amended.

A food pantry is an organization in Nebraska that distributes emergency food supplies to low-income individuals in Nebraska and is exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code of 1986, as amended.

A food rescue is an organization in Nebraska that accepts donations of food and delivers that food to food banks or food pantries and is exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code of 1986, as amended.

A donation made by an agricultural producer of fresh or frozen fruits, vegetables, eggs, dairy products, or meat products grown or produced in Nebraska, meeting all applicable quality and labeling standards, along with any other applicable requirements of the food bank, food pantry, or food rescue to which the qualifying agricultural food donation is made.

Food donated by a grocery store retailer or restaurant must be valued at its wholesale value. Qualifying agricultural food donations must be valued at the prevailing market value of the product at the time of donation, plus direct cost incurred for processing the product. The agricultural producer must determine the prevailing market value and retain documentation for DOR review if requested.