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Senator Marie Alvarado-Gil (R-Jackson) today applauded Governor Gavin Newsom’s signing of Senate Bill 881, which extends California’s Farmer to Food Bank Tax Credit through taxable years beginning before January 1, 2032.
Authored by Senator Jerry McNerney and coauthored by Senators Alvarado-Gil and Laura Richardson, SB 881 continues a 15 percent state tax credit for farmers, growers, and food producers who donate surplus fresh produce, dairy, meat, grains, and other safe-to-eat foods to California food banks. The credit, first created in 2011, was set to expire in January. The bill passed both houses unanimously and took effect immediately upon signature on September 27.
“This is a straightforward win for the people who grow our food and the families who need it,” said Senator Alvarado-Gil, vice chair of the Senate Agriculture Committee. “Farmers should not lose a proven incentive to keep good food out of the waste stream and on the tables of people facing hunger. Extending this credit through 2032 gives our agricultural communities and local food banks the certainty they need to keep working together.”
Sponsors report the program generated $10.7 million in food donations in 2024. Food banks across the state, including in rural communities served by Senate District 4, have said the credit helps move fresh, locally grown food to families as demand for assistance remains high.