Meals for Communities Tax Credit Act

The Meals for Communities Tax Credit Act creates a new tax incentive for restaurants and retail food establishments that donate prepared meals to qualifying charitable organizations. Eligible businesses can claim a credit equal to 50 percent of the fair market value of their donations, with the value of each individual meal capped at $14, subject to annual inflation adjustments starting in 2027. The total credit available to any single taxpayer is limited to $50,000 per year, and businesses cannot also claim a standard tax deduction for the same donated meals. This provision becomes effective for taxable years beginning after December 31, 2025.