I 

116TH CONGRESS 

2D SESSION H. R. 8817 

To provide incentives to make charitable contributions of certain inventory. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 24, 2020 

Mr. PANETTA (for himself and Mr. SMITH of Nebraska) introduced the 

following bill; which was referred to the Committee on Ways and Means 

A BILL 

To provide incentives to make charitable contributions of 

certain 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 ‘‘Preserving Charitable 

5 Incentives Act’’. 

6 SEC. 2. INCENTIVES TO MAKE CHARITABLE CONTRIBU7 TIONS OF CERTAIN INVENTORY. 

8 (a) TEMPORARY INCREASE IN LIMITATION ON

9 QUALIFIED CONTRIBUTIONS.— 

10 (1) SUSPENSION OF CURRENT LIMITATION.— 

11 Except as otherwise provided in paragraph (2), 


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1 qualified contributions shall be disregarded in apply2 ing subsections (b)(2), (d), and (e)(3)(C)(ii) of sec3 tion 170 of the Internal Revenue Code of 1986. 

4 (2) APPLICATION OF INCREASED LIMITATION.— 

5 For purposes of section 170 of the Internal Revenue 

6 Code of 1986— 

7 (A) LIMITATION.—Any qualified contribu8 tion shall be allowed as a deduction only to the 

9 extent that the aggregate of such contributions 

10 does not exceed the excess of the taxpayer’s 

11 taxable income (as determined under paragraph 

12 (2) of section 170(b) of such Code) over the 

13 amount of all other charitable contributions al14 lowed under such paragraph. 

15 (B) CARRYOVER.—If the aggregate 

16 amount of qualified contributions made in the 

17 contribution year (within the meaning of section 

18 170(d)(2) of such Code) exceeds the limitation 

19 of subparagraph (A), such excess shall be ap20 propriately taken into account under section 

21 170(b)(2) of such Code subject to the limita22 tions thereof. 

23 (C) CARRYOVER OF FOOD INVENTORY

24 CONTRIBUTIONS.—If the aggregate amount of 

25 qualified contributions described in section 


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1 170(e)(3)(C)(i) of such Code made in such con2 tribution year exceeds the limitation of subpara3 graph (A), such excess shall be appropriately 

4 taken into account under section 

5 170(e)(3)(C)(iii) of such Code subject to the 

6 limitations thereof, and the application of sub7 paragraph (B) shall be adjusted accordingly. 

8 (3) QUALIFIED CONTRIBUTIONS.—For purposes 

9 of this subsection, the term ‘‘qualified contribution’’ 

10 means any qualified contribution (as defined in sec11 tion 170(e)(3)(A) of the Internal Revenue Code of 

12 1986) which— 

13 (A) is made during a taxable year of the 

14 corporation which begins during 2020 or 2021, 

15 and 

16 (B) does not consist of any drug or biologi17 cal product that requires a prescription of a 

18 physician for its use by an individual. 

19 (4) ELECTION.—A contribution shall be taken 

20 into account as a qualified contribution for purposes 

21 of this subsection only if the corporation elects (at 

22 such time and in such manner as the Secretary may 

23 provide) the application of this subsection with re24 spect to such contribution. 


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1 (b) ELECTION TO TREAT QUALIFIED CONTRIBU2 TIONS AS MADE IN PRIOR TAXABLE YEAR.—In the case 

3 of any qualified contribution (as defined in subsection 

4 (a)(3) and determined without regard to this subsection) 

5 made during the corporation’s first taxable year beginning 

6 in 2020 with respect to which the corporation elects (as 

7 such time and in such manner as the Secretary may pro8 vide) the application of this subsection— 

9 (1) such contribution shall be treated as made 

10 in the taxable year preceding such taxable year (and 

11 not in such taxable year), and 

12 (2) such contribution shall not be treated as a 

13 qualified contribution for purposes of subsection (a). 

14 (c) CLARIFICATION OF TREATMENT OF INVENTORY

15 COSTS.—The Secretary of the Treasury, or the Sec16 retary’s designee, shall clarify, though a notice or other 

17 administrative guidance, the treatment of inventory costs 

18 as cost of goods sold for purposes of section 170 of the 

19 Internal Revenue Code of 1986. 

Æ 


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