Food Bank, Food Pantry, Food Rescue Donation Tax Credit

Neb. Rev. Stat. § 77-27,241 provides a nonrefundable income tax credit for tax years beginning on or after January 1, 2025, to any grocery store retailer or restaurant that donates food or any agricultural producer that makes a qualifying agricultural food donation to a food bank, food pantry, or food rescue during the taxable year. The credit is equal to the lesser of:

  • 50% of the value of the food donations or qualifying agricultural food donations made during the taxable year; or
  • $2,500.

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.

Statutory Limitation
DOR may approve up to $500,000 each State fiscal year starting with State fiscal year 2025-26 for donations made in taxable years beginning on or after January 1, 2025. If the total amount of credits requested by all qualified taxpayers in any year exceeds the State fiscal year limit, DOR will allocate credits proportionally based on the amounts requested so that the limit is not exceeded.

Nonrefundable Tax Credit
A grocery store retailer, restaurant, or agricultural producer must apply for the nonrefundable credit by submitting the Food Bank, Food Pantry, Food Rescue Donation Credit, Form FDC, to the Nebraska Department of Revenue (DOR) with a copy of the donation receipt(s). The donation receipt(s) must include the donation date and the name of the qualified food bank, food pantry, or food rescue.

For the 2025 taxable year, DOR will start accepting Forms FDC in January 2025, for donations made on or after January 1, 2025.

Form FDC and all applicable receipts must be submitted to DOR no later than February 1 of the year following the taxable year in which the donation(s) were made. DOR will not certify credits until after February 1 to allow for the proportional allocation of all requested tax credits if the statutory limit is reached for the year.

A taxpayer may claim the certified credit amount by attaching the tax credit certification received from DOR to the taxpayer’s income tax return and completing the applicable line on the tax return. In some cases an amended return will be required to be filed to claim the credit.

Any unused credit may be carried forward for the next three years after the credit was first allowed.

If the donation was deducted as a charitable contribution on the taxpayer’s federal return and not included in federal adjusted gross income or federal taxable income, the donation must be added back in the determination of Nebraska adjusted gross income or Nebraska taxable income before the certified credit amount can be claimed.

Legislative bill - LB 937, (2024) Section 79

Authorization Table

Frequently Asked Questions


Form and upload link coming January 2025

 

Instructions to Upload Form


 

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