Senate passes expanded tax breaks for food donors

JEFFERSON CITY, Mo. -- Missouri lawmakers want to sweeten the incentives for businesses and individuals to donate to food pantries.

The Senate passed legislation Tuesday authorizing up to $2 million annually in state income tax credits for food pantry donors. To go to Gov. Matt Blunt, the bill needs only a final vote from the House, which previously passed the bill with strong support.

Donors to not-for-profit food pantries already can claim their contributions when calculating deductions on their federal and state income taxes. But tax credits sometimes can provide a larger tax break, because they amount to a dollar-for-dollar reduction on the taxes due.

The legislation authorizes taxpayers who donate food or cash to food pantries to receive a tax credit of half the value of the donation, up to $2,500 a year. That means someone who donates $100 of food could receive a $50 tax credit, but a business that donates $10,000 of food would receive a $2,500 credit -- not a $5,000 credit.

The total state tax credits would be capped at $2 million annually. If claims are higher than that, the donors could receive a prorated amount.

The bill is sponsored by House Speaker Rod Jetton, R-Marble Hill, who hopes it will encourage greater donations to local food pantries.

Republican senators turned back attempts to expand the legislation to grant other tax breaks. On Monday, they voted down a roughly $200 million amendment by Sen. Chuck Graham, D-Columbia, that would have provided a state income tax deduction for college tuition and fees.

Last Thursday, senators rejected an amendment by Sen. Harry Kennedy, D-St. Louis, that would have carved out $100,000 from an existing tax credit program to go to people who renovate their homes to accommodate the disabled.

Senate President Pro Tem Michael Gibbons, R-Kirkwood, said he wanted to avoid an explosion in state tax credits similar to what occurred in the 1990s.

"At some point, we just can't do them all," Gibbons said.