Many restaurant companies are set up as limited liability or sub-chapter s corporations or sole proprietors and are not eligible for the deduction . This Good Samaritan Tax Act restores some common sense to our tax code by addressing these two issues. First, the Act clarifies the determination of fair market value when internal company policies relating to the treatment of food are also involved, ensuring that restaurants that donate food to non-profit hunger relief agencies will be allowed to take the full deduction available to them under current law. Free of the risk of having to defend themselves against an IRS challenge, more businesses will be encouraged to donate food. Despite strong economic growth, hunger remains a problem in every state.
Hunger exists in rural areas as well as in urban areas.
A major strength of food donation programs is that restaurants operate in every part of the country. The result is a largely untapped source of excess food in each of our communities. A strong network of non-profit agencies that serve those who are hungry has developed across the country. America's Second Harvest network food banks, along with Foodchain and other national organizations, provide food to this network. However, increased demand at these agencies has resulted in the need for additional food.