DelBene, LaHood Introduce Bipartisan Legislation to Encourage Prepared Meal Donations

Today, Representatives Suzan DelBene and Darin LaHood (IL-16) introduced the bipartisan Meals for Communities Tax Credit Act. This legislation would encourage restaurants and retail food establishments to donate prepared meals to charitable organizations serving communities across the country by creating new tax incentives for donations.

Currently, businesses and individuals can receive tax deductions for bulk food donations. However, no deduction or credit exists for prepared meals donated to nonprofit organizations that takes into consideration the added costs of food preparation.

The Meals for Communities Tax Credit Act establishes a new nonrefundable credit for eligible businesses that donate prepared meals to charitable organizations. Specifically, the bill would:

• Provide a 50% tax credit for the fair market value of qualified prepared meal donations, with a maximum credit of $7 per meal, adjusted to inflation;
• Cap the credit at $50,000 per year;
• Include guardrails to prevent businesses from double dipping by claiming both the prepared meal credit and the existing charitable deduction for any food donation; and
• Retain the same health and food safety standards for kitchens and donated meals as already required for commercial restaurant service.

"Millions of families across the country are struggling to reliably put food on the table because of rising grocery bills and a more expensive economy. Our food pantries and local nonprofits are stretched thin and cannot meet the demand in their communities. Meanwhile, restaurants are also contending with higher overhead costs and fewer customers," said DelBene. "This legislation helps address both problems by providing restaurants with incentives to donate prepared meals directly to nonprofits serving hungry families. It will support restaurants, their workers, and families who don't have enough to eat."

"Restaurants and food retailers in Illinois and throughout the country have an opportunity to make a meaningful difference in their communities by donating prepared meals to organizations that can put them directly into the hands of people in need," said LaHood. "The Meals for Communities Tax Credit Act provides a commonsense incentive for businesses to be charitable and turn surplus prepared food into meals for families and individuals who need them. By encouraging these donations, we can help strengthen our communities and make sure good food reaches the people who need it most."

"Restaurants are more than places where people eat - they are a vital part of our community infrastructure, with the kitchens, talent, and local relationships to help address food insecurity at scale," said Matt Jozwiak, Founder and CEO of Rethink Food. "The Meals for Communities Tax Credit creates a practical way to unlock that capacity, helping local restaurants stay strong while providing nutritious, chef-prepared meals to neighbors who need them. We're grateful to Representatives LaHood and DelBene for recognizing that supporting small businesses and strengthening food access can, and should, go hand in hand."

Representative Nicole Malliotakis (NY-11) also joined the legislation as an original cosponsor.

The bill text can be found here.