I 

114TH CONGRESS 

1ST SESSION H. R. 644 

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 

FEBRUARY 2, 2015 

Mr. REED 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. SHORT TITLE. 

4 This Act may be cited as the ‘‘Fighting Hunger In5 centive Act of 2015’’. 


tkelley on DSK3SPTVN1PROD with BILLS
2 

•HR 644 IH

1 SEC. 2. EXTENSION AND EXPANSION OF CHARITABLE DE2 DUCTION FOR CONTRIBUTIONS OF FOOD IN3 VENTORY. 

4 (a) PERMANENT EXTENSION.—Section 170(e)(3)(C) 

5 of the Internal Revenue Code of 1986 is amended by strik6 ing clause (iv). 

7 (b) INCREASE IN LIMITATION.—Section 170(e)(3)(C) 

8 of such Code, as amended by subsection (a), is amended 

9 by striking clause (ii), by redesignating clause (iii) as 

10 clause (iv), and by inserting after clause (i) the following 

11 new clauses: 

12 ‘‘(ii) LIMITATION.—The aggregate 

13 amount of such contributions for any tax14 able year which may be taken into account 

15 under this section shall not exceed— 

16 ‘‘(I) in the case of any taxpayer 

17 other than a C corporation, 15 per18 cent of the taxpayer’s aggregate net 

19 income for such taxable year from all 

20 trades or businesses from which such 

21 contributions were made for such 

22 year, computed without regard to this 

23 section, and 

24 ‘‘(II) in the case of a C corpora25 tion, 15 percent of taxable income (as 

26 defined in subsection (b)(2)(D)). 


tkelley on DSK3SPTVN1PROD with BILLS
3 

•HR 644 IH

1 ‘‘(iii) RULES RELATED TO LIMITA2 TION.— 

3 ‘‘(I) CARRYOVER.—If such aggre4 gate amount exceeds the limitation 

5 imposed under clause (ii), such excess 

6 shall be treated (in a manner con7 sistent with the rules of subsection 

8 (d)) as a charitable contribution de9 scribed in clause (i) in each of the 5 

10 succeeding years in order of time. 

11 ‘‘(II) COORDINATION WITH OVER12 ALL CORPORATE LIMITATION.—In the 

13 case of any charitable contribution al14 lowable under clause (ii)(II), sub15 section (b)(2)(A) shall not apply to 

16 such contribution, but the limitation 

17 imposed by such subsection shall be 

18 reduced (but not below zero) by the 

19 aggregate amount of such contribu20 tions. For purposes of subsection 

21 (b)(2)(B), such contributions shall be 

22 treated as allowable under subsection 

23 (b)(2)(A).’’. 

24 (c) DETERMINATION OF BASIS FOR CERTAIN TAX25 PAYERS.—Section 170(e)(3)(C) of such Code, as amended 


tkelley on DSK3SPTVN1PROD with BILLS
4 

•HR 644 IH

1 by subsections (a) and (b), is amended by adding at the 

2 end the following new clause: 

3 ‘‘(v) DETERMINATION OF BASIS FOR

4 CERTAIN TAXPAYERS.—If a taxpayer— 

5 ‘‘(I) does not account for inven6 tories under section 471, and 

7 ‘‘(II) is not required to capitalize 

8 indirect costs under section 263A, 

9 the taxpayer may elect, solely for purposes 

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

11 any apparently wholesome food as being 

12 equal to 25 percent of the fair market 

13 value of such food.’’. 

14 (d) DETERMINATION OF FAIR MARKET VALUE.— 

15 Section 170(e)(3)(C) of such Code, as amended by sub16 sections (a), (b), and (c), is amended by adding at the 

17 end the following new clause: 

18 ‘‘(vi) DETERMINATION OF FAIR MAR19 KET VALUE.—In the case of any such con20 tribution of apparently wholesome food 

21 which cannot or will not be sold solely by 

22 reason of internal standards of the tax23 payer, lack of market, or similar cir24 cumstances, or by reason of being pro25 duced by the taxpayer exclusively for the 


tkelley on DSK3SPTVN1PROD with BILLS
5 

•HR 644 IH

1 purposes of transferring the food to an or2 ganization described in subparagraph (A), 

3 the fair market value of such contribution 

4 shall be determined— 

5 ‘‘(I) without regard to such inter6 nal standards, such lack of market, 

7 such circumstances, or such exclusive 

8 purpose, and 

9 ‘‘(II) by taking into account the 

10 price at which the same or substan11 tially the same food items (as to both 

12 type and quality) are sold by the tax13 payer at the time of the contribution 

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

15 recent past).’’. 

16 (e) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to contributions made after the 

18 date of the enactment of this Act. 

Æ 


tkelley on DSK3SPTVN1PROD with BILLS