Updated Tax Credits and Expansion to Certifications  Offer Maryland Farmers New Resources 

ANNAPOLIS, MD (October 4, 2023) – Updates in legislation will impact Maryland farmers this year as enhanced tax credits are now available for food donations. As of July, farmers are able to claim 100 percent wholesale credit to all food—certified organic or otherwise. 

“This is a great improvement for all farms across Maryland,” said Maryland Department of Agriculture Secretary Kevin Atticks. “Not only are food banks and non-profits benefiting, but the farmers will now receive full wholesale credit for their products.” 

The Farmers Feeding Families Act of 2022 increased the wholesale credit to 100 percent for all food where the original bill allowed farmers to claim credit on only 50 percent of the wholesale value of their donated food products (75 percent for organic).Wholesale values will be determined by MDA utilizing data from the U.S. Department of Agriculture and the Maryland Wholesale Produce Market, which provides daily guidance on wholesale pricing for produce and seafood in Maryland. 

The tax credit is capped at $5,000 per year per farm. Exceptions may be made by the Maryland Secretary of Agriculture, allowing the tax credit to be increased from $5,000 per farm to $10,000 per farm. In addition to the updated tax credit, changes to the Certified Local Farm and Fish Program, formerly known as the Certified Local Farm Enterprise Program, will now include a focus on certified Chesapeake invasive species providers.

The Certified Local Farm Enterprise Program of 2019 was established to encourage each state agency to structure its procurement procedures to try to achieve an overall percentage goal of 20 percent of its total dollar value of procurement contracts for food being made directly or indirectly to certified local farm enterprises. An agency may achieve the goal through competitive sealed bids and proposals and small procurements under terms in current law.

With the addition of certified Chesapeake invasive species, this now includes blue catfish and any other “finfish species” that is (1) ranked as high priority in the Maryland Aquatic Nuisance Species Management Plan and (2) harvested from the Chesapeake Bay or its tributaries. 

Those interested in becoming a part of the Certified Local Farm and Fish Program may apply though OneStop, the state’s online registration tool. After the Maryland Department of Agriculture has approved certification, farms or Chesapeake Invasive Species Providers are eligible to work alongside the department to bid out their products to state institutions and universities. 

Information on how to receive the tax credit will be published on the department’s website at mda.maryland.gov. 

For more information on the tax credit program, please contact Mark Powell at mark.powell@maryland.gov. For more information on the Certified Local Farm and Fish program, please visit mda.maryland.gov or contact Karen Fedor at localfood@maryland.gov.  

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