New tax law incentivizes food donations to Maryland nonprofits [Video]

MARYLAND (DC New Now) — A change in Maryland law went into effect Oct. 1 that offers incentives to farmers who donate their products to food banks and other nonprofits.

Previously farmers could write off 50% of their donations and 70% for organic food. But now the wholesale credit is a full 100%. There is, however, a $10,000 limit on the credit for one year.

Food banks across the state welcome the new tax credit because it will help them meet the increasing demand for donations.

“We purchase some product from farmers but many donate product as well,” Sean Gibe with the Maryland Food Bank, said.

Another beneficiary of the increased tax credit are fisheries in the Chesapeake Bay region which process their seafood catch and donate it to nonprofits.