Tax credit available for Iowa farmers' donated food - KWWL - Eastern Iowa Breaking News, Weather, Closings

Tax credit available for Iowa farmers' donated food

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Iowa farmers may be eligible for a tax credit by donating their self-produced food to food banks and pantries.  

The credit on state taxes will be equal to 15 percent of the value of the goods donated throughout the tax year.

If the amount is less than $5,000, then the farmers will be credited this amount.

In order the qualify for the credit, producers must produce the food being donated, and must transfer the title to the organization registered with the Iowa Department of Revenue.  

In addition, producers may not receive compensation for any products.  

Everything donated must be undamaged and fit for human consumption, and must meet the requirements of the federal Emergency Food Assistance Program.

“Iowa farmers care deeply about their communities and this new tax credit program may provide some additional tax benefit to farmers who donate food to a food bank or food pantry,” said Bill Northey, Iowa Secretary of Agriculture. 

“As we see more farmers raising fresh produce, this new tax credit program is something they should be aware of as they consider food donations,” Northey added.


The program is valid through the end of the year.  

Tax credits are not refundable, but may be credited ahead to the tax liability for the following five years.  

Donation evaluation worksheets can be accessed at https://tax.iowa.gov/farm-food-donation-tax-credit

More information answers to frequently asked questions can be found at https://tax.iowa.gov/farm-food-donation-tax-credit.

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