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ACTION TOOLKIT: TAX CREDIT FOR FOOD DONATIONBill HB5404 Contents (click to each page):

2 BACKGROUND SUMMARY: WHY THIS BILL MATTERS

3 FOREGROUND SUMMARY: WIN-WIN-WIN

4 ABOUT FOOD DONATION TAX INCENTIVES

5 HOW TO TAKE ACTION

6-8 FACT SHEETS

9 RESOURCES

10 QUOTES FROM RI ORGS & BUSINESSES

Presented by the Surplus Food Donation Workgroup

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31% of RI households faced food insecurity in 2022, 18.2% higher than the national average.

Meanwhile, ReFED reports that 33.2% of Rhode Island’s surplus food was produced by industry sectors in 2022 (farms, foodservice, manufacturing and retail businesses), accounting for 128 million pounds of unused food. Of this, only 7.4% was donated; 42% fed the landfill, and 50.6% was sent to animal feed, compost, anaerobic digestion, etc.

BACKGROUND SUMMARY: �WHY THIS BILL MATTERS

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Though this bill did not pass last year, the Council has worked alongside legislators to strengthen the language to ensure passage of this common-sense legislation.

Simply put, a TAX CREDIT FOR FOOD DONATION is a…WIN – Propel food & nutrition security through repurposing unused food.

WIN – Improve health equity through increased access to wholesome foods.

WIN – Preserve the environment + better our health as a result.

WIN – Stretch tax dollars by extending the life of landfills.

WIN – Support Rhode Island businesses that donate their leftovers.

WIN – Assist nonprofits: more food donated = more dollars for programs.

FOREGROUND SUMMARY: WIN-WIN-WIN

We strongly believe that donating excess food is a no-brainer. More people need to be educated on the positive impact this has within our communities. Tax credits would help to do just that because let's face it, saving money always incentivizes people. Together we can do SO much better for our state and our planet!” Heather C. Zoller, Z pita chipz.

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ABOUT FOOD DONATION TAX INCENTIVES

Federal Policy: The federal Protecting Americans from Tax Hikes (PATH) Act incentivizes businesses to donate eligible food products via enhanced tax credits.

Rhode Island does not currently have policy to surpass or complement the federal legislation and has the opportunity to create state-level tax incentives or credits for food donation. �

�States with �Tax Incentive Policies:

Arizona

California (strongest)

Iowa

Maryland

Missouri

Nebraska

New York

Oregon

Pennsylvania

South Carolina

Virginia

West Virginia

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TAKE ACTION

Use our drafts to encourage legislators and community members.

Feel free to incorporate the facts provided on the following pages into your personal narrative.

Your participation is vital to pass this legislation.

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  • FOOD IS WASTED:
    • ReFED estimates 33.2% of Rhode Island’s surplus food was produced by industry sectors in 2022 (farms, foodservice, manufacturing and retail businesses), accounting for 128 million pounds of unused food. Of this:
      • Only 7.4% was donated, despite food donation being among the most preferred methods of avoiding waste according to the Environmental Protection Agency.
      • 42% fed the landfill.
      • 50.6% was sent to animal feed, compost, anaerobic digestion, etc.
    • In all, the equivalent of over 145.77 million meals were sent to animal feed, compost, anaerobic digestion and landfill use from industry sectors in 2022. Moving forward, if a conceivable 10% were fit for consumption and donated as outlined by the EPA, ~14.57 million meals would boost food security for Rhode Islanders annually.
      • This would save residents an estimated $44.15 million annually (per the average cost per meal at home of $3.03 based on the USDA’s Cost of Food at Home at Three Levels and fourth level; and USDA’s Thrifty Plan). This would be considered a lifeline for the estimated 142,038 Rhode Islanders utilizing SNAP and for those who struggle to stay within their food budget, forced to choose quantity over quality of food they purchase; and/or who skip meals for their children, even for their pets.

TAKE ACTION:THIS BILL MATTERSSlide 1 of 3

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  • FOOD INSECURITY:
    • Rhode Island’s 2022 food insecurity rate was reported at 31%, 18.2% above the national average. The RI Community Food Bank reports improvement in 2023 at 29%, however, households with children under 18 saw a jump to 38%.
    • Increased food donations will lower food costs among RI-based organizations through the supplementation of quality excess food. Replacing food expenditures with critical investments in human service programs will propel their unique missions while stretching tax dollars.
    • United Way recorded RI as the state with the most food deserts in the U.S. in 2020 due to 91% of low-income areas having low supermarket access; with the most severity occurring in Woonsocket (within Providence County), where 19.2% of residents currently live in poverty. �
  • RACIAL DISPARITIES:
    • Though white residents make up 69.9% of RI's population per the US Census Bureau, the food insecurity rate among black households is 25% higher than that of white households at 23%, despite black households only being 9.1% of the population at a 48% rate of food insecurity. This rate is even higher among latino households which occupy 17.6% of our population, with a food insecurity rate of 51% – 28% higher than white households and 22% above the average for all RI households facing food insecurity.

TAKE ACTION:THIS BILL MATTERSSlide 2 of 3

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  • LANDFILL/ENVIRONMENT:
    • Food donation will lessen impacts caused by food spoilage in RI landfills by reducing methane gasses, 25 times more harmful to the environment than carbon dioxide; and extend the life of the Central Landfill, projected to reach capacity by 2040.
    • Food lost to landfills was 12.7% higher in RI than of the 36.7% national average
    • Climate Central includes RI as among the fastest-warming states in USA.�
  • NATIONAL GOALS:

TAKE ACTION:THIS BILL MATTERSSlide 3 of 3

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RESOURCES

Share this ToolKit widely! bit.ly/RIFoodDonationPolicyToolKit

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I believe all food businesses should and can donate food as there is always excess. Any food business would welcome a tax break. It’s good for the environment to not waste; and great humanitarian work to donate and feed. It’s excellent business to donate unused food and reduce costs associated �with waste." �Brinda Sen, Khipi

...This will be helpful to struggling families across the State.

The money needed to purchase that food could be used for something else.”�Alice Howard, Sunrise Forever

�“This would allow us to provide for even more

for those struggling in our community and homeless individuals that stay with us. We would be able to use this food to do even more outreach than we currently do, allowing us to go to camps and tent cities to reach those who cannot come to us!”

Pastor Luis Cardona, �Providence Rescue Mission

Giving more people benefits through nutrition assistance programs, food donations and hot meals may help reduce food insecurity and hunger in our community. The West End Community Center (WECC) serves about 500 new families at our food pantry each month. WECC serves the diverse community of Providence's WEST END clients, who are low income and encounter many barriers to economic success.

Melisa Pena, West End Community Center