IB 

Union Calendar No. 12 

114TH CONGRESS 

1ST SESSION H. R. 644 

[Report No. 114–18] 

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 

FEBRUARY 9, 2015 

Additional sponsors: Mr. TIBERI, Mr. SCHOCK, Mr. COSTELLO of Pennsylvania, Mr. KELLY of Pennsylvania, Mr. GIBSON, Mr. PAULSEN, and Mr. 

NUNES

FEBRUARY 9, 2015 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on February 2, 2015] 

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A BILL 

To amend the Internal Revenue Code of 1986 to permanently 

extend and expand the charitable deduction for contributions of food inventory. 

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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 Incen5 tive Act of 2015’’. 

6 SEC. 2. EXTENSION AND EXPANSION OF CHARITABLE DE7 DUCTION FOR CONTRIBUTIONS OF FOOD IN8 VENTORY. 

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

10 the Internal Revenue Code of 1986 is amended by striking 

11 clause (iv). 

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

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

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

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

16 clauses: 

17 ‘‘(ii) LIMITATION.—The aggregate 

18 amount of such contributions for any tax19 able year which may be taken into account 

20 under this section shall not exceed— 

21 ‘‘(I) in the case of any taxpayer 

22 other than a C corporation, 15 percent 

23 of the taxpayer’s aggregate net income 

24 for such taxable year from all trades or 

25 businesses from which such contribumstockstill on DSK4VPTVN1PROD with BILLS

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1 tions were made for such year, com2 puted without regard to this section, 

3 and 

4 ‘‘(II) in the case of a C corpora5 tion, 15 percent of taxable income (as 

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

7 ‘‘(iii) RULES RELATED TO LIMITA8 TION.— 

9 ‘‘(I) CARRYOVER.—If such aggre10 gate amount exceeds the limitation im11 posed under clause (ii), such excess 

12 shall be treated (in a manner con13 sistent with the rules of subsection (d)) 

14 as a charitable contribution described 

15 in clause (i) in each of the 5 suc16 ceeding taxable years in order of time. 

17 ‘‘(II) COORDINATION WITH OVER18 ALL CORPORATE LIMITATION.—In the 

19 case of any charitable contribution al20 lowable under clause (ii)(II), sub21 section (b)(2)(A) shall not apply to 

22 such contribution, but the limitation 

23 imposed by such subsection shall be re24 duced (but not below zero) by the ag25 gregate amount of such contributions. 

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1 For purposes of subsection (b)(2)(B), 

2 such contributions shall be treated as 

3 allowable under subsection (b)(2)(A).’’. 

4 (c) DETERMINATION OF BASIS FOR CERTAIN TAX5 PAYERS.—Section 170(e)(3)(C) of such Code, as amended 

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

7 end the following new clause: 

8 ‘‘(v) DETERMINATION OF BASIS FOR

9 CERTAIN TAXPAYERS.—If a taxpayer— 

10 ‘‘(I) does not account for inven11 tories under section 471, and 

12 ‘‘(II) is not required to capitalize 

13 indirect costs under section 263A, 

14 the taxpayer may elect, solely for purposes 

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

16 any apparently wholesome food as being 

17 equal to 25 percent of the fair market value 

18 of such food.’’. 

19 (d) DETERMINATION OF FAIR MARKET VALUE.—Sec20 tion 170(e)(3)(C) of such Code, as amended by subsections 

21 (a), (b), and (c), is amended by adding at the end the fol22 lowing new clause: 

23 ‘‘(vi) DETERMINATION OF FAIR MAR24 KET VALUE.—In the case of any such con25 tribution of apparently wholesome food 

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1 which cannot or will not be sold solely by 

2 reason of internal standards of the tax3 payer, lack of market, or similar cir4 cumstances, or by reason of being produced 

5 by the taxpayer exclusively for the purposes 

6 of transferring the food to an organization 

7 described in subparagraph (A), the fair 

8 market value of such contribution shall be 

9 determined— 

10 ‘‘(I) without regard to such inter11 nal standards, such lack of market, 

12 such circumstances, or such exclusive 

13 purpose, and 

14 ‘‘(II) by taking into account the 

15 price at which the same or substan16 tially the same food items (as to both 

17 type and quality) are sold by the tax18 payer at the time of the contribution 

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

20 recent past).’’. 

21 (e) EFFECTIVE DATE.— 

22 (1) IN GENERAL.—Except as otherwise provided 

23 in this subsection, the amendments made by this sec24 tion shall apply to contributions made after the date 

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1 of the enactment of this Act, in taxable years ending 

2 after such date. 

3 (2) LIMITATION; APPLICABILITY TO C CORPORA4 TIONS.—The amendments made by subsection (b) 

5 shall apply to contributions made in taxable years 

6 ending after the date of the enactment of this Act. 

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Union Calendar No. 12 

114TH CONGRESS 

1ST SESSION H. R. 644 

[Report No. 114–18] 

A BILL 

To amend the Internal Revenue Code of 1986 to 

deduction for contributions of food inventory. permanently extend and expand the charitable 

FEBRUARY 9, 2015 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 

mstockstill on DSK4VPTVN1PROD with BILLS