Bill Would Permanently Extend Charitable Deduction for Food Inventory

Bill Would Permanently Extend Charitable Deduction for Food Inventory

News story posted in Legislative on 5 September 2013| comments
audience: National Publication | last updated: 6 September 2013
Print
||
Rate:

Summary

Sander M. Levin, D-MI has introduced H.R. 2945, which if enacted would permanently extend and expand the charitable deduction for contributions of food inventory.

Full Text:

113TH CONGRESS
1ST SESSION

H.R. 2945

To amend the Internal Revenue Code of 1986 to permanently extend and
expand the charitable deduction for contributions of food inventory.

IN THE HOUSE OF REPRESENTATIVES

AUGUST 1, 2013

Mr. LEVIN (for himself and Mr. GERLACH) introduced the following
bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to permanently extend and expand the charitable deduction for contributions of food inventory.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. EXTENSION AND EXPANSION OF CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD INVENTORY.

(a) PERMANENT EXTENSION. -- Subparagraph (C) of section 170(e)(3) of the Internal Revenue Code of 1986 is amended by striking clause (iv).

(b) DETERMINATION OF BASIS FOR TAXPAYERS OTHER THAN C CORPORATIONS. -- Subparagraph (C) of section 170(e)(3) of such Code, as amended by subsection (a), is amended by adding at the end the following new clause:

"(iv) DETERMINATION OF BASIS FOR TAXPAYERS OTHER THAN C CORPORATIONS. -- If a taxpayer --

"(I) does not account for inventories under section 471, and

"(II) is not required to capitalize indirect costs under section 263A,

the taxpayer may elect, solely for purposes of subparagraph (B), to treat the basis of any apparently wholesome food as being equal to 25 percent of the fair market value of such food.".

(c) DETERMINATION OF FAIR MARKET VALUE. -- Subparagraph (C) of section 170(e)(3) of such Code, as amended by subsections (a) and (b), is amended by adding at the end the following new clause:

"(v) DETERMINATION OF FAIR MARKET VALUE. -- In the case of any such contribution of apparently wholesome food which, solely by reason of internal standards of the taxpayer, lack of market, or similar circumstances, or which is produced by the taxpayer exclusively for the purposes of transferring the food to an organization described in subparagraph (A), cannot or will not be sold, the fair market value of such contribution shall be determined --

"(I) without regard to such internal standards, such lack of market, such circumstances, or such exclusive purpose, and

"(II) by taking into account the price at which the same or substantially the same food items (as to both type and quality) are sold by the taxpayer at the time of the contribution (or, if not so sold at such time, in the recent past).".

(d) LIMITATION. --

(1) INCREASE IN PERCENTAGE. -- Clause (ii) of section 170(e)(3)(C) of such Code is amended by striking "10 percent" and inserting "15 percent".

(2) APPLICABILITY TO C CORPORATIONS. --

(A) IN GENERAL. -- Clause (ii) of section 170(e)(3)(C) of such Code is amended by striking "In the case of a taxpayer other than a C corporation, the" and inserting "The".

(B) COORDINATION WITH LIMITATION. -- Paragraph (3) of section 170(b) of such Code is amended to read as follows:

"(3) CHARITABLE CONTRIBUTIONS OF FOOD. -- For purposes of paragraph (2)(A) --

"(A) IN GENERAL. -- Any charitable contribution of food to which subsection (e)(3)(C) applies shall be allowed to the extent the aggregate of such contributions does not exceed the limitation under subsection (e)(3)(C)(ii).

"(B) CARRYOVER. -- If the aggregate amount of contributions described in subparagraph (A) exceeds such limitation, such excess shall be treated (in a manner consistent with the rules of subsection (d)) as a charitable contribution to which subparagraph (A) applies in each of the 5 succeeding years in order of time.".

(e) EFFECTIVE DATE. -- The amendments made by this section shall apply to contributions made after the date of the enactment of this Act, in taxable years ending after such date.

Add comment

Login or register to post comments

Comments

Group details

Follow

RSS

This group offers an RSS feed.
 
7520 Rates: November 2.4% October 2.2% September 2.4%

Already a member?

Learn, Share, Gain Insight, Connect, Advance

Join Today For Free!

Join the PGDC community and…

  • Learn through thousands of pages of content, newsletters and forums
  • Share by commenting on and rating content, answering questions in the forums, and writing
  • Gain insight into other disciplines in the field
  • Connect – Interact – Grow
  • Opt-in to Include your profile in our searchable national directory. By default, your identity is protected

…Market yourself to a growing industry