Encourage Food Donations and Reduce Grocery Waste

 

The purpose of this bill is to reduce both food waste and hunger.

 

Hunger has become a major issue in Minnesota. “In MN, 1 in 10 people face hunger, and 1 in 7 children face hunger.” By

reducing food waste and donating food that can be changed. Although food waste doesn't seem like an issue, it is. “The

majority of the food Minnesotans throw out — about 62% — could have been eaten or donated, according to an

MPCA-commissioned study of solid waste in 2019 and 2020.” About 440,000 Minnesotans rely on SNAP, so food donation can

be very important, like when the government shut down, people lost access to SNAP benefits.“Because of the shutdown,

state officials say there is not enough federal funding for SNAP, the Supplemental Nutrition Assistance Program that

provides food benefits to low-income families.” Families can lose access to food, and by donating from grocery stores,

they don't have to completely depend on food stamps if something were to happen.

 

Tax write-off: A tax write-off refers to any business deduction allowed by the IRS for the purpose of lowering taxable

income

Fair market value: the retail price of the food item at the time of donation.

Fiscal year: A fiscal year is a twelve-month period used by businesses and governments for budgeting and financial

reporting.

SNAP: the Supplemental Nutrition Assistance Program, is a federal program that provides monthly food benefits to

low-income households to help them afford groceries. Formerly known as food stamps, the government funds it and helps to

combat food insecurity by bridging the gap between those who don't have enough to eat and available food supplies

 

Funding is not necessary for this bill. However, grocery stores may deduct the full fair market value of any edible food

donated to qualified nonprofit food distribution organizations from their taxable income. For example, if a grocery

store donates $10,000 worth of food, the state would only lose $980 because the tax rate is 9.8%. The state loses less

than $1000 for every $10,000 donated

 

Since it is a tax incentive, there are no penalties necessary

 

July 1, 2026 (Start of Minnesota's fiscal year)