The California Legislature unanimously approved a bill Wednesday aimed at continuing the supply of fresh fruits, vegetables, nuts and other nourishment to hungry families.

SB 881, authored by state Sen. Jerry McNerney, D-Pleasanton, continues tax credits to growers for donating surplus crops to food banks.

“California farmers and growers are among the most productive in the world, and yet too many Californians go hungry each year,” said McNerney, who previously served eight terms in Congress.

“SB 881 will benefit farmers and food banks by helping ensure that surplus food from California’s bountiful harvest each year doesn’t go to waste and instead will help feed the hungry.”

The bill would take effect immediately if Gov. Gavin Newsom signs it into law.

15% Tax Credit for Food Donations

The Farmer to Food Bank Tax Credit program, which produced $10.7 million of food donations in 2024, is scheduled to expire Jan. 1, 2027. Under the tax credit program, farmers, growers, and food producers receive a 15% tax credit for food donations.

SB 881 will also extend until 2033 the option for California taxpayers to donate to food banks on their state tax returns.

“Farmers should not have to watch good food go to waste while families are struggling to put food on the table. That is especially true now, with recent cuts to programs that help Californians put food on the table,” said Nick Lapis, director of advocacy for Californians Against Waste. “SB 881 is a win-win that gives farmers a reason to donate surplus food and gives food banks more support to get that food to people who need it.”