In June 2026, Governor Healey signed a fiscal year 2026 supplemental budget into law that included a three-year, refundable, up to $5,000 tax credit for farmers and aquaculture producers who donate excess crops to hunger relief nonprofits. This is thanks to the hard work of Representative Hannah Kane and Senator Comerford, who have advocated for this policy for many years in the Legislature. A refundable tax credit is a credit you can get as a refund even if you don’t owe any tax. The statute is effective for tax years ending on or after December 31, 2026. So, the credit will be able to be claimed starting with returns filed in 2027.
Please note: Massachusetts Department of Revenue’s Rulings and Regulations Bureau is currently developing regulations to implement this tax credit. There will be a public hearing and comments period. We will update this page with more information when we receive it. DOR has acknowledged this credit has passed into law on their website here.
Producers should keep a record of the following to qualify for this credit:
- The nonprofit’s name
- The donation date
- How much food was donated (in lbs), and whether they were meals or crops
- The fair market value of the food, meals or crops donated.
We will be monitoring the implementation of this credit closely, and advocating for its extension so it does not end in three years.