Qualified farms that make an eligible food donation may be eligible for an income tax credit. A qualified farm that makes an eligible food donation is eligible for a tax credit amount equal to 50% of the value of the eligible food donation. A qualified farm that makes a donation of certified organic produce is eligible for a tax credit amount equal to 75% of the value of the donated certified organic produce. Certification of the tax credit is issued by an individual or organization authorized by the State Department of Agriculture to receive eligible food donations from a qualified farm and to issue the qualified farm a tax credit certificate. For any taxable year, the aggregate amount of credits authorized for a qualified farm may not exceed $5,000 unless the Maryland Secretary of Agriculture increases the credit limitation for a qualified farm to an amount not to exceed $10,000. If the allowable credit amount exceeds the State income tax, the unused credit may be carried forward each subsequent year until the allowable credit is used up or 5 years, whichever first occurs.
“Qualified farms” means a farm business that is located in Anne Arundel County, Calvert County, Charles County, Montgomery County, Prince George’s County, or St. Mary’s County.
“Eligible food donation” means fresh farm products for human consumption. “Certified organic produce” means an eligible food donation certified under Title 10, Subtitle 14 of the Agriculture Article as an organically produced commodity.
The credit is claimed on Part Z, line 1, and is also entered on the Business Tax Credit Summary, Part BB, line 26.
For questions on application and certification processes or for additional information on this credit program, contact:
Maryland Department of Agriculture
50 Harry S. Truman Parkway
Annapolis, Maryland 21401
Note: A copy of all certificates issued by a Tax Credit Certificate Administrator must be included with Form 500CR.
No credit may be earned for any tax year beginning on or after January 1, 2020.