II 

109TH CONGRESS 

1ST SESSION S. 94 

To amend the Internal Revenue Code of 1986 to provide for a charitable 

deduction for contributions of food inventory. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 24, 2005 

Mr. LUGAR (for himself, Mr. LEAHY, Mrs. LINCOLN, Mrs. DOLE, and Mr. 

SMITH) 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 provide 

for a 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 Act’’. 

6 SEC. 2. CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF 

7 FOOD INVENTORY. 

8 (a) IN GENERAL.—Section 170(e) of the Internal 

9 Revenue Code of 1986 (relating to certain contributions 
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1 of ordinary income and capital gain property) is amended 

2 by adding at the end the following new paragraph: 

3 ‘‘(7) SPECIAL RULE FOR CONTRIBUTIONS OF

4 FOOD INVENTORY.—For purposes of this section— 

5 ‘‘(A) CONTRIBUTIONS BY NON-CORPORATE

6 TAXPAYERS.—In the case of a charitable con7 tribution of food by a taxpayer, paragraph 

8 (3)(A) shall be applied without regard to wheth9 er or not the contribution is made by a corpora10 tion. 

11 ‘‘(B) LIMIT ON REDUCTION.—In the case 

12 of a charitable contribution of food which is a 

13 qualified contribution (within the meaning of 

14 paragraph (3)(A), as modified by subparagraph 

15 (A) of this paragraph)— 

16 ‘‘(i) paragraph (3)(B) shall not apply, 

17 and 

18 ‘‘(ii) the reduction under paragraph 

19 (1)(A) for such contribution shall be no 

20 greater than the amount (if any) by which 

21 the amount of such contribution exceeds 

22 twice the basis of such food. 

23 ‘‘(C) DETERMINATION OF BASIS.—For 

24 purposes of this paragraph, if a taxpayer uses 

25 the cash method of accounting, the basis of any 
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1 qualified contribution of such taxpayer shall be 

2 deemed to be 50 percent of the fair market 

3 value of such contribution. 

4 ‘‘(D) DETERMINATION OF FAIR MARKET

5 VALUE.—In the case of a charitable contribu6 tion of food which is a qualified contribution 

7 (within the meaning of paragraph (3), as modi8 fied by subparagraphs (A) and (B) of this para9 graph) and which, solely by reason of internal 

10 standards of the taxpayer, lack of market, or 

11 similar circumstances, or which is produced by 

12 the taxpayer exclusively for the purposes of 

13 transferring the food to an organization de14 scribed in paragraph (3)(A), cannot or will not 

15 be sold, the fair market value of such contribu16 tion shall be determined— 

17 ‘‘(i) without regard to such internal 

18 standards, such lack of market, such cir19 cumstances, or such exclusive purpose, and 

20 ‘‘(ii) if applicable, by taking into ac21 count the price at which the same or simi22 lar food items are sold by the taxpayer at 

23 the time of the contribution (or, if not so 

24 sold at such time, in the recent past).’’. 
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1 (b) EFFECTIVE DATE.—The amendment made by 

2 subsection (a) shall apply to taxable years beginning after 

3 December 31, 2004. 

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