The Maryland Food Donation Pilot Program (SB 416) became law in 2017. Updates in legislation in 2023 will impact Maryland farmers as enhanced tax credits are now available for food donations. As of July 1, 2023, farmers are able to claim 100 percent wholesale credit to all food—certified organic or otherwise. 

The Farmers Feeding Families Act of 2022 increased the wholesale credit to 100 percent for all food where the original bill allowed farmers to claim credit on only 50 percent of the wholesale value of their donated food products (75 percent for organic). Wholesale values will be determined by MDA utilizing data from the U.S. Department of Agriculture and the Maryland Wholesale Produce Market, which provides daily guidance on wholesale pricing for produce and seafood in Maryland. 

Food banks will utilize the posted prices on MDA's website below when filling out the forms.

The tax credit is capped at $5,000 per year per farm. Exceptions may be made by the Maryland Secretary of Agriculture, allowing the tax credit to be increased from $5,000 per farm to $10,000 per farm. 

For more information or questions on the application process, contact Mark Powell at (410) 841-5775 or mark.powell@maryland.gov​.