Food Crop Donation Tax Credit Guidelines

During the 2016 Session, the Virginia General Assembly enacted House Bill 1093 (2016 Acts of Assembly, Chapter 391) and Senate Bill 580 (2016 Acts of Assembly, Chapter 304), which established the Food Crop Donation Tax Credit. This is an individual and corporate income tax credit for certain  persons engaged in the business of farming for growing food crops in the Commonwealth and donating such crops to a nonprofit food bank. The amount of the credit is equal 30 percent of the fair market value of such crops. No taxpayer is permitted to claim more than $5,000 in credits for a taxable year.

Under this legislation, the Tax Commissioner is prohibited from issuing more than $250,000 in tax credits in any fiscal year. Taxpayers are required to submit an application to the Department of Taxation in accordance with the forms, instructions, dates, and procedures prescribed by the Department.

The legislation requires the Department to adopt guidelines to implement the provisions of such legislation. Accordingly, December 16, 2016, the Department of Taxation published final Food Crop Donation Tax Credit Guidelines.

Legislative Documents

House Bill 1093 (2016)

• HB 1093 Text as passed 
• HB 1093 PDF if text as passed (PDF)
• HB 1093 Fiscal Impact Statement

Senate Bill 580 (2016)

• SB 580 Text as passed 
• SB 580 PDF of text as passed (PDF)
• SB 580 Fiscal Impact Statement

Guideline Development Documents

• Food Crop Donation Tax Credit Workplan (PDF)
• Draft Food Crop Donation Tax Credit Guidelines (PDF)
• Final Food Crop Donation Tax Credit Guidelines (PDF)

Comments Regarding Draft Guidelines

• Summary of Meeting with Virginia Food Banks
• Comment from Mr. Matt Lohr
• ​Comment from Mr. Andrew W. Smith
• Comment from Ms. Leslie Van Horn
• Comment from Ms. Katie Frazier