I 

112TH CONGRESS 

1ST SESSION H. R. 3729 

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 

DECEMBER 19, 2011 

Mr. DAVIS of Kentucky (for himself and Mr. LEVIN) 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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. EXTENSION AND EXPANSION OF CHARITABLE 

4 DEDUCTION FOR CONTRIBUTIONS OF FOOD 

5 INVENTORY. 

6 (a) PERMANENT EXTENSION.—Subparagraph (C) of 

7 section 170(e)(3) of the Internal Revenue Code of 1986 

8 is amended by striking clause (iv). 

9 (b) DETERMINATION OF BASIS FOR TAXPAYERS

10 OTHER THAN C CORPORATIONS.—Subparagraph (C) of 


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1 section 170(e)(3) of such Code, as amended by subsection 

2 (a), is amended by adding at the end the following new 

3 clause: 

4 ‘‘(iv) DETERMINATION OF BASIS FOR

5 TAXPAYERS OTHER THAN C CORPORA6 TIONS.—If a taxpayer— 

7 ‘‘(I) does not account for inven8 tories under section 471, and 

9 ‘‘(II) is not required to capitalize 

10 indirect costs under section 263A, 

11 the taxpayer may elect, solely for purposes 

12 of subparagraph (B), to treat the basis of 

13 any apparently wholesome food as being 

14 equal to 25 percent of the fair market 

15 value of such food.’’. 

16 (c) DETERMINATION OF FAIR MARKET VALUE.— 

17 Subparagraph (C) of section 170(e)(3) of such Code, as 

18 amended by subsections (a) and (b), is amended by adding 

19 at the end the following new clause: 

20 ‘‘(v) DETERMINATION OF FAIR MAR21 KET VALUE.—In the case of any such con22 tribution of apparently wholesome food 

23 which, solely by reason of internal stand24 ards of the taxpayer, lack of market, or 

25 similar circumstances, or which is proVerDate Mar 15 2010 20:30 Dec 23, 2011 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3729.IH H3729

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1 duced by the taxpayer exclusively for the 

2 purposes of transferring the food to an or3 ganization described in subparagraph (A), 

4 cannot or will not be sold, the fair market 

5 value of such contribution shall be deter6 mined— 

7 ‘‘(I) without regard to such inter8 nal standards, such lack of market, 

9 such circumstances, or such exclusive 

10 purpose, and 

11 ‘‘(II) by taking into account the 

12 price at which the same or substan13 tially the same food items (as to both 

14 type and quality) are sold by the tax15 payer at the time of the contribution 

16 (or, if not so sold at such time, in the 

17 recent past).’’. 

18 (d) LIMITATION.— 

19 (1) INCREASE IN PERCENTAGE.—Clause (ii) of 

20 section 170(e)(3)(C) of such Code is amended by 

21 striking ‘‘10 percent’’ and inserting ‘‘15 percent’’. 

22 (2) APPLICABILITY TO C CORPORATIONS.— 

23 (A) IN GENERAL.—Clause (ii) of section 

24 170(e)(3)(C) of such Code is amended by strikVerDate Mar 15 2010 20:30 Dec 23, 2011 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3729.IH H3729

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1 ing ‘‘In the case of a taxpayer other than a C 

2 corporation, the’’ and inserting ‘‘The’’. 

3 (B) COORDINATION WITH LIMITATION.— 

4 Paragraph (3) of section 170(b) of such Code 

5 is amended to read as follows: 

6 ‘‘(3) CHARITABLE CONTRIBUTIONS OF FOOD.— 

7 For purposes of paragraph (2)(A)— 

8 ‘‘(A) IN GENERAL.—Any charitable con9 tribution of food to which subsection (e)(3)(C) 

10 applies shall be allowed to the extent the aggre11 gate of such contributions does not exceed the 

12 limitation under subsection (e)(3)(C)(ii). 

13 ‘‘(B) CARRYOVER.—If the aggregate 

14 amount of contributions described in subpara15 graph (A) exceeds such limitation, such excess 

16 shall be treated (in a manner consistent with 

17 the rules of subsection (d)) as a charitable con18 tribution to which subparagraph (A) applies in 

19 each of the 5 succeeding years in order of 

20 time.’’. 

21 (e) EFFECTIVE DATES.—The amendments made by 

22 this section shall apply to contributions made after the 

23 date of the enactment of this Act, in taxable years ending 

24 after such date. 

Æ 


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