The Food Waste Innovation Fund supports public and private sector initiatives to reduce food waste by channeling some of the tax savings food companies receive when they donate surplus food into innovative new technologies, businesses and charitable organizations.
Under recent changes to the tax code, recovering and donating supply chain waste would allow the food industry to reduce its taxable income by up to $6 billion a year and eliminate $1.3 billion in disposal fees. Recovering and donating just 7% of wasted food each year (15% of fresh produce and 6% of non-perishables) would allow the industry to take an additional $485 million in deductions.
When Food Cowboy’s app is used in the supply chain, donors pay Food Cowboy LLC a 5% commission, and pay Food Cowboy Foundation a 10% commission, on the tax benefits they receive when they donate to charities through Food Cowboy. Investing through Food Cowboy Foundation in improved food bank operations and new waste reducing businesses and technologies enables the industry to help feed millions of hungry Americans, protect the environment, and avoid expensive damaging regulation.
The No Food Waste Committee will also help explore solutions to food waste that could be developed and implemented using a portion of the potential federal tax savings available to the food industry for food donations to charities and re-routing of inedible organic waste to secondary users and sustainable disposers.