US Codex
Bill
Notes

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

H.R. 2945 · 113th Congress · Aug 1, 2013 · Lineage

A BILL

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,”

(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.