II 

112TH CONGRESS 

1ST SESSION S. 166 

To amend the Internal Revenue Code of 1986 to permanently extend and 

expand the charitable deduction for contributions of food inventory. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 25 (legislative day, JANUARY 5), 2011 

Mr. LUGAR (for himself and Mr. LEAHY) introduced the following bill; which 

was read twice and referred to the Committee on Finance 

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. SHORT TITLE. 

4 This Act may be cited as the ‘‘Good Samaritan Hun5 ger Relief Tax Incentive Extension Act of 2011’’. 

6 SEC. 2. PERMANENT EXTENSION AND EXPANSION OF CHAR7 ITABLE DEDUCTION FOR CONTRIBUTIONS OF 

8 FOOD INVENTORY. 

9 (a) IN GENERAL.—Subparagraph (C) of section 

10 170(e)(3) of the Internal Revenue Code of 1986 (relating 


tjames on DSK5CLS3C1PROD with BILLS
2 

•S 166 IS

1 to special rule for certain contributions of inventory and 

2 other property) is amended to read as follows: 

3 ‘‘(C) SPECIAL RULE FOR CONTRIBUTIONS

4 OF FOOD INVENTORY.— 

5 ‘‘(i) GENERAL RULE.—In the case of 

6 a charitable contribution of food from any 

7 trade or business of the taxpayer, this 

8 paragraph shall be applied— 

9 ‘‘(I) without regard to whether 

10 the contribution is made by a C cor11 poration, and 

12 ‘‘(II) only to food that is appar13 ently wholesome food. 

14 ‘‘(ii) LIMITATION ON REDUCTION.—In 

15 the case of any such contribution, notwith16 standing subparagraph (B), the amount of 

17 the reduction determined under paragraph 

18 (1)(A) shall not exceed the amount by 

19 which the fair market value of the appar20 ently wholesome food exceeds twice the 

21 basis of such food. 

22 ‘‘(iii) DETERMINATION OF BASIS.—If 

23 a taxpayer— 

24 ‘‘(I) does not account for inven25 tories under section 471, and 


tjames on DSK5CLS3C1PROD with BILLS
3 

•S 166 IS

1 ‘‘(II) is not required to capitalize 

2 indirect costs under section 263A, 

3 the taxpayer may elect, solely for purposes 

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

5 any apparently wholesome food as being 

6 equal to 50 percent of the fair market 

7 value of such food. 

8 ‘‘(iv) DETERMINATION OF FAIR MAR9 KET VALUE.—In the case of any such con10 tribution of apparently wholesome food 

11 which, solely by reason of internal stand12 ards of the taxpayer, lack of market, or 

13 similar circumstances, or which is pro14 duced by the taxpayer exclusively for the 

15 purposes of transferring the food to an or16 ganization described in subparagraph (A), 

17 cannot or will not be sold, the fair market 

18 value of such contribution shall be deter19 mined— 

20 ‘‘(I) without regard to such inter21 nal standards, such lack of market, 

22 such circumstances, or such exclusive 

23 purpose, and 

24 ‘‘(II) by taking into account the 

25 price at which the same or substanVerDate Mar 15 2010 00:06 Feb 01, 2011 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S166.IS S166

tjames on DSK5CLS3C1PROD with BILLS
4 

•S 166 IS

1 tially the same food items (as to both 

2 type and quality) are sold by the tax3 payer at the time of the contribution 

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

5 recent past). 

6 ‘‘(v) APPARENTLY WHOLESOME

7 FOOD.—For purposes of this subpara8 graph, the term ‘apparently wholesome 

9 food’ has the meaning given to such term 

10 by section 22(b)(2) of the Bill Emerson 

11 Good Samaritan Food Donation Act (42 

12 U.S.C. 1791(b)(2)), as in effect on the 

13 date of the enactment of this subpara14 graph.’’. 

15 (b) EFFECTIVE DATE.—The amendment made by 

16 this section shall apply to contributions made after the 

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

18 after such date. 

Æ 


tjames on DSK5CLS3C1PROD with BILLS