H.R. 10499: Meals for Communities Tax Credit Act

This bill would create a new federal tax credit for certain businesses that donate prepared meals to qualifying charities.

What the credit would do

Restaurants and retail food establishments could claim a credit equal to 50% of the fair market value of eligible prepared meal donations they make during the tax year.

Who could claim it

The credit would be available only to an eligible business, defined as a restaurant or retail food establishment.

What kinds of donations count

The donation would have to be:

• a charitable contribution of a prepared meal;
• made to a 501(c)(3) tax-exempt organization;
• made to an organization that is not a private foundation unless it is an operating foundation.

The bill says the Treasury Department would define what counts as a “prepared meal” through rules or guidance.

Limits on the credit

• The value of any one qualified meal donation could not exceed $14 per meal for purposes of the credit.
• That $14 amount would be adjusted for inflation for taxable years beginning after 2026.
• The total credit any taxpayer could claim in a year would be capped at $50,000.

Interaction with other tax benefits

A business could not also claim a tax deduction for the same amount used to calculate this credit. In other words, it could not get a double tax benefit for the same donation.

When it would take effect

The new credit would apply to taxable years beginning after December 31, 2025.

Relevant Companies

• None found