Beginning in 2018, New York is allowing farmers a tax credit of up to $5,000, based on 25% of fair market value, for qualified food donations to food pantries.
Reality Check
Before you rush off the the local farmers' market to score your tax credit (you know you're thinking about it), there are definitions of eligible farmer, qualified donation, and eligible food pantry that must be met.
However, these generally mean what you think they mean, so if you think you qualify, you probably do.
Show Me the Money
To claim the credit, you must keep a receipt showing:
- the name of the eligible food pantry
- the EIN of the food pantry
- the date and location of the qualified donation, and
- a reasonably detailed description of the donation.
You also need to keep proof of how the donation was valued. NY indicates that acceptable proof includes US Dept of Agriculture online price reports and local co-op pricing guidelines for the date of the donation.
You can not claim a NY charitable deduction for a food donation that is used to claim the tax credit, but it appears you can claim a charitable deduction for federal purposes.
What to do Now
If you have food to donate, you have until December 31 to be sure you and the food pantry qualify for this credit, and to actually transfer your food donation. If you are not a farmer, but you know one, pass this along.
