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Legal Fact Sheet for Massachusetts Food Donation: Tax Incentives for Businesses

 

Federal tax incentives provide important financial incentives that make food donation more cost-effective and economically beneficial. These tax incentives have been extraordinarily successful in motivating food donation; after federal tax incentives for food donations were temporarily expanded to cover more businesses in 2005, food donations across the country rose by 137% in 2006. At the end of 2015, Congress made the expansion permanent, providing all businesses with an added incentive to increase food donations and prevent food waste. While federal tax incentives may be augmented by state-level tax incentives in some states, Massachusetts has no such state-level policy. Therefore, Massachusetts businesses are only eligible for federal tax incentives, which are available in the form of a general or enhanced tax deduction. This guide will discuss both types of tax incentives.

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