Income tax: credits: food banks.

Senator Alvarado-Gil's legislation makes permanent California's tax credit program for food bank donations, removing the January 1, 2027 expiration date for credits that allow farmers and food producers to deduct 15 percent of the wholesale value of agricultural products donated to food banks.

The measure maintains the existing framework for qualified donations, which encompasses fresh produce, meat, dairy, eggs, and processed foods like rice, beans, and pasta. Eligible donors include agricultural producers and processors directly involved in growing, harvesting, or processing food items, though retailers remain excluded. The credit continues to require food banks to certify donations and document their wholesale market value based on comparable sales or USDA price data.

Under the bill, the Franchise Tax Board's annual reporting requirements on credit utilization, donation values, and geographic distribution extend through 2035, providing an additional decade of program monitoring. The legislation preserves current provisions allowing unused credits to carry forward for up to six years and takes effect immediately upon enactment as a tax levy.