An Act To Combat Hunger by Creating a Tax Credit of 10 Percent of Wholesale Market Prices up to $5,000 Annually for Businesses Engaged in Food Production for Donations of Food to Tax-exempt Organizations
Maine Legislature, Session 130, LD 0262
Committee: Taxation
Sponsors: ROBERTS, DAUGHTRY, COLLINGS, HALL, MATLACK, MEYER, PLUECKER, TERRY, MAXMIN
Amends: 36 MRSA §5216-E

Legislative Document
No. 262
H.P. 183
House of Representatives, January 29, 2021
An Act To Combat Hunger by Creating a Tax Credit of 10 Percent 
of Wholesale Market Prices up to $5,000 Annually for Businesses 
Engaged in Food Production for Donations of Food to Tax-exempt 
Organizations
Received by the Clerk of the House on January 27, 2021.  Referred to the Committee on 
Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative ROBERTS of South Berwick.
Cosponsored by Senator DAUGHTRY of Cumberland and
Representatives: COLLINGS of Portland, HALL of Wilton, MATLACK of St. George, 
McDONALD of Stonington, MEYER of Eliot, PLUECKER of Warren, TERRY of Gorham, 
Senator: MAXMIN of Lincoln.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §5216-E is enacted to read:
§5216-E.  Food donation credit
1.  Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings.
A. "Commercial agricultural production" has the same meaning as under section 2013, 
subsection 1, paragraph A.
B.  "Commercial aquacultural production" has the same meaning as under section 
2013, subsection 1, paragraph A-1.
C.  "Commercial fishing" has the same meaning as under section 2013, subsection 1, 
paragraph B.
D.  "Low-income individual" means an individual who is a member of a lower income 
household as defined in Title 30-A, section 5002, subsection 11 or who is homeless as 
defined in Title 30-A, section 5002, subsection 6.
E.  "Wholesale market price" means the market price for a product determined either 
by: 
(1) The amount paid to the producer of the product by the last previous cash buyer 
of the product; or
(2) If there is no previous cash buyer of the product, an amount based on the market 
price for the product of the nearest regional wholesale buyer or the regional so-
called "u-pick" market price for the product offered to customers who harvest 
products of their choice.
2. Credit.  A person engaged in commercial agricultural production, commercial 
aquacultural production or commercial fishing may claim a credit against the taxes imposed 
by this Part equal to 10% of the wholesale market price of agricultural products, 
aquacultural products or fishing products, respectively, donated to a food bank, food 
kitchen or other organization that is exempt from taxation under Section 501(c) of the Code 
or incorporated under Title 13-B, that is located in this State and that provides food to 
low-income individuals without charging a fee for the food or requiring any other type of 
compensation from the low-income individuals.  The credit under this section may not 
exceed $5,000.  A person applying for a credit under this section must submit with the 
application a written statement from the donee that the products donated will be used by 
the donee for charitable purposes and for the care of individuals who are ill, needy or 
malnourished.
Sec. 2.  Application.  This Act applies to tax years beginning on or after January 1, 
2022.
SUMMARY
This bill provides an income tax credit for persons engaged in commercial agricultural 
production, commercial aquacultural production or commercial fishing for donations to a 
food bank, food kitchen or other tax-exempt organization that provides food to low-income 
individuals without charging a fee for the food or requiring any other type of compensation 
from the low-income individuals.  The credit is equal to 10% of the wholesale market price 
of the donated products up to a maximum of $5,000.