Sen. McNerney backs extension of farmer-to-food-bank tax credit; SB 881 sent to suspense

Sen. McNerney introduced SB 881 on behalf of a bipartisan effort to extend two tax provisions that support food banks and farm donations. The bill would extend the donated-fruit-and-vegetable (farmer-to-food-bank) tax credit through 2032 and the emergency food for families voluntary tax contribution through 2033.

Supporters told the committee the measures address growing food insecurity and avoid wasting surplus California-grown produce. "SB 881 sends the sunset on two important programs," said Josh Wright of the California Association of Food Banks, describing a 15% credit for farmers who donate California-grown food and saying the network is serving a record 6,000,000 Californians per month. Wright added that the credit helps prevent unharvested food from going to waste and reduces greenhouse-gas emissions.

Louis Brown, representing several agricultural organizations including the American Pistachio Growers and the California Avocado Commission, said farmers still bear costs when donating unmarketable or surplus foods and that the tax credit "helps alleviate that cost, allowing them to partner with local food banks." Multiple local governments and nonprofits, including the City and County of San Francisco, Western Growers, Californians Against Waste, and others, registered support.

Committee members asked about on-the-ground challenges facing farmers in the author’s district; McNerney cited weak markets for wine grapes and concerns about pesticide regulation affecting almond production. When asked his motivation, McNerney said, "I just don't want to see people go hungry when there's no need for it."

Because SB 881 is projected to exceed the committee's $150,000 revenue-impact threshold, the chair announced the bill will be referred to the committee's suspense file for further consideration under the committee’s suspense rules.