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 contribu-
tions of food inventory. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Fighting Hunger In-
centive Act of 2014’’. 
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SEC. 2. EXTENSION AND EXPANSION OF CHARITABLE DE-
DUCTION FOR CONTRIBUTIONS OF FOOD IN-
VENTORY. 
(a) PERMANENT EXTENSION.—Section 170(e)(3)(C) 
of the Internal Revenue Code of 1986 is amended by strik-
ing clause (iv). 
(b) INCREASE IN LIMITATION.—Section 170(e)(3)(C) 
of such Code, as amended by subsection (a), is amended 
by striking clause (ii), by redesignating clause (iii) as 
clause (iv), and by inserting after clause (i) the following 
new clause: 
‘‘(ii) 
LIMITATION.—The 
aggregate 
amount of such contributions for any tax-
able year which may be taken into account 
under this section shall not exceed— 
‘‘(I) in the case of any taxpayer 
other than a C corporation, 15 per-
cent of the taxpayer’s aggregate net 
income for such taxable year from all 
trades or businesses from which such 
contributions were made for such 
year, computed without regard to this 
section, and 
‘‘(II) in the case of a C corpora-
tion, 15 percent of taxable income (as 
defined in subsection (b)(2)(C)). 
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‘‘(iii) RULES
RELATED
TO
LIMITA-
TION.— 
‘‘(I) CARRYOVER.—If such aggre-
gate amount exceeds the limitation 
imposed under clause (ii), such excess 
shall be treated (in a manner con-
sistent with the rules of subsection 
(d)) as a charitable contribution de-
scribed in clause (i) in each of the 5 
succeeding years in order of time. 
‘‘(II) COORDINATION WITH OVER-
ALL CORPORATE LIMITATION.—In the 
case of any charitable contribution al-
lowable under clause (ii), subsection 
(b)(2) shall not apply to such con-
tribution, but the limitation imposed 
by such subsection shall be reduced 
(but not below zero) by the aggregate 
amount of such contributions. For 
purposes of subsection (b)(2)(B), such 
contributions shall be treated as al-
lowable under subsection (b)(2)(A).’’. 
(c) DETERMINATION
OF BASIS
FOR TAXPAYERS 
OTHER THAN C CORPORATIONS.—Section 170(e)(3)(C) 
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of such Code, as amended by subsections (a) and (b), is 
amended by adding at the end the following new clause: 
‘‘(v) DETERMINATION OF BASIS FOR 
TAXPAYERS
OTHER
THAN
C
CORPORA-
TIONS.—If a taxpayer— 
‘‘(I) does not account for inven-
tories under section 471, and 
‘‘(II) is not required to capitalize 
indirect costs under section 263A, 
the taxpayer may elect, solely for purposes 
of subparagraph (B), to treat the basis of 
any apparently wholesome food as being 
equal to 25 percent of the fair market 
value of such food.’’. 
(d) DETERMINATION OF FAIR MARKET VALUE.— 
Section 170(e)(3)(C) of such Code, as amended by sub-
sections (a), (b), and (c), is amended by adding at the 
end the following new clause: 
‘‘(vi) DETERMINATION OF FAIR MAR-
KET VALUE.—In the case of any such con-
tribution of apparently wholesome food 
which cannot or will not be sold solely by 
reason of internal standards of the tax-
payer, lack of market, or similar cir-
cumstances, or by reason of being pro-
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duced by the taxpayer exclusively for the 
purposes of transferring the food to an or-
ganization described in subparagraph (A), 
the fair market value of such contribution 
shall be determined— 
‘‘(I) without regard to such inter-
nal standards, such lack of market, 
such circumstances, or such exclusive 
purpose, and 
‘‘(II) by taking into account the 
price at which the same or substan-
tially the same food items (as to both 
type and quality) are sold by the tax-
payer at the time of the contribution 
(or, if not so sold at such time, in the 
recent past).’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to contributions made after De-
cember 31, 2013, in taxable years ending after such date. 
Æ 
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