New Fight Hunger Act Offers Full Tax Credit for Food Donations Starting 2026

The newly proposed Fight Hunger Act is looking to change how we incentivize charitable giving, specifically targeting organizations that feed the hungry, sick, or infants. Starting with the 2026 tax year (for tax years beginning after December 31, 2025), this bill introduces a brand-new tax credit that directly reduces your tax bill dollar-for-dollar based on the amount you donate.

The Credit vs. The Deduction: What’s the Big Deal?

Currently, when you donate to charity, you usually take a tax deduction, which lowers your taxable income. This new provision creates a tax credit equal to the amount of your “qualified charitable donations.” For most people, a credit is better than a deduction because it’s a direct reduction of what you owe, regardless of your tax bracket. The bill defines a qualified donation as cash or “wholesome food” given to a tax-exempt charity (501(c)(3)) that actively uses those resources to feed people. Crucially, this excludes most private foundations, meaning the credit is aimed squarely at operational groups like food banks and soup kitchens.

The Anti-Double Dip Rule and Real-World Choices

Here’s the catch, and it’s an important one for anyone who itemizes their taxes: You have to choose. If you take this new credit for a donation, you cannot also take the standard tax deduction for that same amount. This is the “no double-dipping” rule. For a middle-income family making a modest donation, the credit will almost certainly be the better deal. However, high-income earners who already itemize and make very large donations might find that the deduction, which reduces their income taxed at a high rate, is still more valuable. The bill forces you to run the numbers to see which benefit works best for your specific tax situation, respecting your choice while preventing you from claiming two benefits for the same donation.

Beyond the Cash: Food, Mileage, and Flexibility

The bill makes it easier for people to donate food directly. If you’re a small business owner, a farmer, or even just someone with a big garden or pantry, you can donate “wholesome food” and claim the credit, provided the organization uses it to feed people. The bill also recognizes the effort required to get that food where it needs to go: If you use your own vehicle to deliver the donated food, you can include the cost of that transportation in your donation amount, calculated using the standard mileage rate. This is a smart move that removes a practical barrier for community volunteers.

Handling Unused Credits

What happens if your credit is bigger than your tax bill? The bill allows you to carry that leftover credit forward for up to five years. This feature ensures that the full value of the charitable giving incentive is realized, even if the donor doesn't have a high tax liability in the year they donate. This carryover provision makes the credit much more valuable and flexible, especially for businesses or individuals who might have fluctuating income or tax owed from year to year. The bill also clarifies that if a business makes the donation, that portion of the credit is treated like a standard general business credit.