Tax credit established for farmers who donate food to a food shelf.

HF 3386 creates an 85% state income tax credit for Minnesota farmers who donate qualifying food to food shelves. The credit applies to donations eligible for federal tax deductions, but is limited to 50% of the farmer's real property taxes for the year. Farmers cannot use the same donation for other state tax benefits, and any unused credit can be carried forward for up to five years. The bill takes effect for taxable years beginning after December 31, 2025.