HB 175 Alabama House · 2026 Regular Session

Income tax; credit for donation to food banks.

HB 175 creates a state income tax credit for Alabama farmers and food establishments that donate safe-to-eat farm products (like fruits, vegetables, dairy, or meat) to qualifying food banks. Donors can claim a credit equal to 15% of the donated food's value (capped at $5,000 per year), calculated using federal tax rules for charitable food donations. The credit is limited to $2 million total statewide annually and expires after the 2031 tax year, with applications processed on a first-come, first-served basis until the cap is reached. The bill takes effect in 2027 and aims to encourage food donations without requiring recipients to pay for the donations.

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Feb 2026

House Passage

Feb 2026

Senate Passage

Governor

Introduced Jan 13, 2026 Last action Feb 10, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Engrossed · 6 edits · Feb 10, 2026

MODERATE

The bill was amended to expand eligibility to include owners of food establishments, not just farmers. It also updated the definition of qualifying food banks to specifically include partners of the Feeding America network, clarified that the tax credit is non-refundable and cannot be carried forward, and established a $2 million annual cap on total credits issued. The effective date for claiming the credit was set for the 2027 tax year.

Scope change

The bill's scope was broadened to include food establishment owners as eligible donors alongside farmers, and the definition of qualifying food banks was narrowed to specific partners of the Feeding America network.

ELIGIBILITY

Added 'owners of food establishments' to the list of eligible donors who can claim the tax credit for donating food.

DEFINITION

Changed the definition of a 'qualifying food bank' from a general state definition to specifically requiring the entity to be a partner or affiliate of the Feeding America national network.

REQUIREMENT

Added a $2 million annual aggregate cap on the total tax credits that can be issued to all taxpayers combined.

Clarified that the tax credit is non-refundable, cannot be transferred, cannot be carried forward, and cannot reduce tax liability below zero.

Added a requirement for the Department of Agriculture to issue tax credit certificates on a first-come, first-served basis once the annual cap is reached.

TIMELINE

Specified that the tax credit can be claimed starting with the 2027 tax year and cannot be claimed after tax year 2031.

Floor votes

How they voted

This bill passed the House by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Feb 10, 2026

Upper · Passed

Pending Committee Action in Second House (Finance and Taxation General Fund)

upper

Feb 10, 2026

Lower · Passed

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 351

lower

Feb 10, 2026

Lower · Passed

Motion to Adopt - Adopted Roll Call 350

lower

Feb 10, 2026

Introduced

Holk-Jones 1st Amendment Offered

lower

Feb 10, 2026

Lower · Passed

Motion to Adopt - Adopted Roll Call 349

lower

Feb 10, 2026

Introduced

Ways and Means Education Engrossed Substitute Offered (Ways and Means Education)

lower

Feb 4, 2026

Lower · Passed

Reported Out of Committee House of Origin (Ways and Means Education)

lower

Jan 13, 2026

Lower · Passed

Pending Committee Action in House of Origin (Ways and Means Education)

lower

1 primary · 0 co-sponsors