SALEM — Oregon lawmakers, working to patch a $3.5 billion budget shortfall, are devoting an unusual level of scrutiny this session to income tax credits, which are expected to reduce state collections by more than $1 billion during the 2009-2011 biennium.

Swimming against the tide of cuts is Rep. Julie Parrish, R-West Linn, who on Wednesday presented what has been called her “hippy, garden” bill. It aims to encourage more city dwellers to produce their own food and donate some of it to the needy. The legislation contains a significant carrot in the form of a tax credit.

Homeowners who landscape their property for the purpose of growing food are eligible to claim 25 percent of the cost as a tax credit. The bill, HB 3545, would cap the credit at $1,000. Thus, a person who invests $4,000 in yard improvements designed to produce food — say, by ripping out rhododendrons to plant blueberries, Parish said, or installing irrigation — he or she is eligible for a $1,000 credit.

The bill also allows homeowners to reduce their taxable income by up to $500 by donating produce to programs for the needy. Income tax credits reduce people’s tax bills directly; taxable income deductions reduce the income used to calculate taxes.

One supporter of the bill is Christina Riggs, the executive director of the La Pine Community Kitchen. If there’s one constant during the summer months, says Riggs, it’s that there are always more people who need food than there is produce. Parrish says her bill, notably through its food donation deduction, is intended to address that mismatch.

Opponents of the bill say they like the idea of growing more food locally and helping nonprofits by donating fresh produce, but they question the wisdom of giving people more income tax breaks when the state is facing a massive budget shortfall.

“It’s a silly idea for taxpayers to spend $1,000 on someone’s private garden,” said Jody Wiser, with Tax Fairness Oregon. Wiser argues that there are ways to help home gardeners without reducing general fund revenue at a time when other programs are under threat.

“If our goal is to help people raise fruit and vegetables … they need help with advice, not spending $1,000 on putting in raised beds in your yard. That’s not going to help you do it,” Wiser said.

Incentives to grow

Parrish maintained this bill is a win-win for Oregon. It gives people incentives to grow and donate food. Moreover, she says, it would create jobs. People would buy soil and seeds and hire arborists and landscapers.

“(This is about) finding other ways to feed Oregonians rather than just having food stamps be the only solution,” she said.

Parrish’s bill has bipartisan support, including that of co-sponsor Mike McLane, R-Powell Butte, who says “it will result in more food produced and more food reaching hungry people.” He calls this “a worthy cause and something government needs to facilitate.”

A fiscal impact statement has not been done on the bill.