H.R. 644 — what changed
Trade Facilitation and Trade Enforcement Act of 2015
From Introduced in House to Reported in House. 1 section amended between Introduced in House and Reported in House.
Sec. 2 Extension and expansion of charitable deduction for contributions of food inventory
Permanent extension— Section 170(e)(3)(C) of the Internal Revenue Code of 1986 is amended by striking clause (iv).
Increase in limitation— Section 170(e)(3)(C) of such Code, as amended by subsection (a), is amended by striking clause (ii), by redesignating clause (iii) as clause (iv), and by inserting after clause (i) the following new clauses:
“(ii) Limitation—The aggregate amount of such contributions for any taxable year which may be taken into account under this section shall not exceed—
“(I) in the case of any taxpayer other than a C corporation, 15 percent of the taxpayer’s aggregate net income for such taxable year from all trades or businesses from which such contributions were made for such year, computed without regard to this section, and
“(II) in the case of a C corporation, 15 percent of taxable income (as defined in subsection (b)(2)(D)).
“(iii) Rules related to limitation
changed “(I) Carryover—If such aggregate amount exceeds the limitation imposed under clause (ii), such excess shall be treated (in a manner consistent with the rules of subsection (d)) as a charitable contribution described in clause (i) in each of the 5 succeeding taxable years in order of time.
“(II) Coordination with overall corporate limitation—In the case of any charitable contribution allowable under clause (ii)(II), subsection (b)(2)(A) shall not apply to such contribution, but the limitation imposed by such subsection shall be reduced (but not below zero) by the aggregate amount of such contributions. For purposes of subsection (b)(2)(B), such contributions shall be treated as allowable under subsection (b)(2)(A).”
Determination of basis for certain taxpayers— Section 170(e)(3)(C) of such Code, as amended by subsections (a) and (b), is amended by adding at the end the following new clause:
“(v) Determination of basis for certain taxpayers—If a taxpayer—
“(I) does not account for inventories under section 471, and
“(II) is not required to capitalize indirect costs under section 263A,”
Determination of fair market value— Section 170(e)(3)(C) of such Code, as amended by subsections (a), (b), and (c), is amended by adding at the end the following new clause:
“(vi) Determination of fair market value—In the case of any such contribution of apparently wholesome food which cannot or will not be sold solely by reason of internal standards of the taxpayer, lack of market, or similar circumstances, or by reason of being produced by the taxpayer exclusively for the purposes of transferring the food to an organization described in subparagraph (A), 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).”
added
Effective Date—
added
In general— Except as otherwise provided in this subsection, 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.
added
Limitation; applicability to C corporations— The amendments made by subsection (b) shall apply to contributions made in taxable years ending after the date of the enactment of this Act.
removed
Effective Date— The amendments made by this section shall apply to contributions made after the date of the enactment of this Act.