I 

113TH CONGRESS 

2D SESSION H. R. 4719 

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 

MAY 22, 2014 

Mr. REED (for himself and Mr. GERLACH) 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 2014’’. 


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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 clause: 

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)(C)). 


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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), subsection 

15 (b)(2) shall not apply to such con16 tribution, but the limitation imposed 

17 by such subsection shall be reduced 

18 (but not below zero) by the aggregate 

19 amount of such contributions. For 

20 purposes of subsection (b)(2)(B), such 

21 contributions shall be treated as al22 lowable under subsection (b)(2)(A).’’. 

23 (c) DETERMINATION OF BASIS FOR TAXPAYERS

24 OTHER THAN C CORPORATIONS.—Section 170(e)(3)(C) 


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1 of such Code, as amended by subsections (a) and (b), is 

2 amended by adding at the end the following new clause: 

3 ‘‘(v) DETERMINATION OF BASIS FOR

4 TAXPAYERS OTHER THAN C CORPORA5 TIONS.—If a taxpayer— 

6 ‘‘(I) does not account for inven7 tories under section 471, and 

8 ‘‘(II) is not required to capitalize 

9 indirect costs under section 263A, 

10 the taxpayer may elect, solely for purposes 

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

12 any apparently wholesome food as being 

13 equal to 25 percent of the fair market 

14 value of such food.’’. 

15 (d) DETERMINATION OF FAIR MARKET VALUE.— 

16 Section 170(e)(3)(C) of such Code, as amended by sub17 sections (a), (b), and (c), is amended by adding at the 

18 end the following new clause: 

19 ‘‘(vi) DETERMINATION OF FAIR MAR20 KET VALUE.—In the case of any such con21 tribution of apparently wholesome food 

22 which cannot or will not be sold solely by 

23 reason of internal standards of the tax24 payer, lack of market, or similar cir25 cumstances, or by reason of being proVerDate Mar 15 2010 01:56 May 29, 2014 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4719.IH H4719

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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 the fair market value of such contribution 

5 shall be determined— 

6 ‘‘(I) without regard to such inter7 nal standards, such lack of market, 

8 such circumstances, or such exclusive 

9 purpose, and 

10 ‘‘(II) by taking into account the 

11 price at which the same or substan12 tially the same food items (as to both 

13 type and quality) are sold by the tax14 payer at the time of the contribution 

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

16 recent past).’’. 

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

18 this section shall apply to contributions made after De19 cember 31, 2013, in taxable years ending after such date. 

Æ 


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