I 

111TH CONGRESS 

1ST SESSION H. R. 3227 

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 

JULY 15, 2009 

Mr. LEVIN (for himself and Mr. DAVIS of Kentucky) 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. EXTENSION AND EXPANSION OF CHARITABLE 

4 DEDUCTION FOR CONTRIBUTIONS OF FOOD 

5 INVENTORY. 

6 (a) PERMANENT EXTENSION.—Subparagraph (C) of 

7 section 170(e)(3) of the Internal Revenue Code of 1986 

8 is amended by striking clause (iv). 

9 (b) DETERMINATION OF BASIS FOR TAXPAYERS

10 OTHER THAN C CORPORATIONS.—Subparagraph (C) of 


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1 section 170(e)(3) of such Code, as amended by subsection 

2 (a), is amended by adding at the end the following new 

3 clause: 

4 ‘‘(iv) DETERMINATION OF BASIS FOR

5 TAXPAYERS OTHER THAN C CORPORA6 TIONS.—If a taxpayer— 

7 ‘‘(I) does not account for inven8 tories under section 471, and 

9 ‘‘(II) is not required to capitalize 

10 indirect costs under section 263A, 

11 the taxpayer may elect, solely for purposes 

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

13 any apparently wholesome food as being 

14 equal to 25 percent of the fair market 

15 value of such food.’’. 

16 (c) DETERMINATION OF FAIR MARKET VALUE.— 

17 Subparagraph (C) of section 170(e)(3) of such Code, as 

18 amended by subsections (a) and (b), is amended by adding 

19 at the end the following new clause: 

20 ‘‘(v) DETERMINATION OF FAIR MAR21 KET VALUE.—In the case of any such con22 tribution of apparently wholesome food 

23 which, solely by reason of internal stand24 ards of the taxpayer, lack of market, or 

25 similar circumstances, or which is proVerDate Nov 24 2008 03:04 Jul 16, 2009 Jkt 079200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3227.IH H3227

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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 cannot or will not be sold, the fair market 

5 value of such contribution shall be deter6 mined— 

7 ‘‘(I) without regard to such inter8 nal standards, such lack of market, 

9 such circumstances, or such exclusive 

10 purpose, and 

11 ‘‘(II) by taking into account the 

12 price at which the same or substan13 tially the same food items (as to both 

14 type and quality) are sold by the tax15 payer at the time of the contribution 

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

17 recent past).’’. 

18 (d) SPECIAL RULE FOR CONTRIBUTIONS IN 2009 

19 AND 2010.—Subparagraph (C) of section 170(e)(3) of 

20 such Code, as amended by subsections (a), (b), and (c), 

21 is amended by adding at the end the following: 

22 ‘‘(vi) SPECIAL RULE FOR 2009 AND

23 2010.—In the case of any such contribution 

24 during any taxable year beginning in 2009 

25 or 2010, notwithstanding subparagraph 


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1 (B), the amount of the reduction deter2 mined under paragraph (1)(A) shall not 

3 exceed the amount by which the fair mar4 ket value of the apparently wholesome food 

5 exceeds twice the basis of such food.’’. 

6 (e) EFFECTIVE DATES.— 

7 (1) IN GENERAL.—Except as provided in para8 graph (2), the amendments made by this section 

9 shall apply to contributions made after the date of 

10 the enactment of this Act, in taxable years ending 

11 after such date. 

12 (2) SPECIAL RULE FOR 2009 AND 2010.—The 

13 amendment made by subsection (d) shall apply to 

14 contributions made in taxable years beginning after 

15 December 31, 2008. 

Æ 


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