Food Bank, Food Pantry, Food Rescue Donation Tax Credit
For taxable years beginning on or after January 1, 2025, and before January 1, 2026, 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 may be eligible for a nonrefundable tax credit. The nonrefundable 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 for State fiscal year 2025-2026. Credit requests received on the day the annual limit is exceeded will be prorated and no additional credit requests will be approved for such fiscal year..
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.
DOR will process applications in the order received until the statutory limit is reached. After approval of the application, a taxpayer may claim the certified credit amount using the Form 3800N with the applicable income tax return.
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
Legislative bill – LB 208, (2025) Section 6
Legislative bill – LB 650, (2025) Section 45
