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United States Code (relating to training require-
ments for Ready Reserve), or section 502(a) of
title 32, United States Code (relating to required
drills and field exercises for the National
Guard), in connection with which an employee is
entitled to reemployment rights and other bene-
fits or to a leave of absence from employment
under chapter 43 of title 38, United States Code,
and
(B) hospitalization incident to such duty.
(c) CERTAIN RULES TO APPLY.—For purposes of this
section, rules similar to the rules of sections 51(i)(1), 52,
and 280C(a) of the Internal Revenue Code of 1986 of the
shall apply.
(d) CREDIT TO BE PART OF GENERAL BUSINESS
CREDIT.—The credit allowed under this section shall be
added to the current year business credit under section
38(b) of the Internal Revenue Code of 1986 and shall be
treated as a credit allowed under subpart D of part IV of
subchapter A of chapter 1 of such Code.
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TITLE III—CHARITABLE GIVING
INCENTIVES
SEC. 301. TEMPORARY SUSPENSION OF LIMITATIONS ON
CHARITABLE CONTRIBUTIONS.
(a) IN GENERAL.—Except as otherwise provided in
subsection (b), section 170(b) of the Internal Revenue Code
of 1986 shall not apply to qualified contributions and such
contributions shall not be taken into account for purposes
of subsections (b) and (d) of section 170 of the Internal Rev-
enue Code of 1986.
(b) TREATMENT
OF EXCESS CONTRIBUTIONS.—For
purposes of section 170 of such Code—
(1) 
INDIVIDUALS.—In 
the 
case 
of 
an
individual—
(A) LIMITATION.—Any qualified contribu-
tion shall be allowed only to the extent that the
aggregate of such contributions does not exceed
the excess of the taxpayer’s contribution base (as
defined in paragraph (1) of section 170(b) of
such Code) over the amount of all other chari-
table contributions allowed under such para-
graph.
(B) CARRYOVER.—If the aggregate amount
of qualified contributions made in the contribu-
tion year (within the meaning of section
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170(d)(1) of such Code) exceeds the limitation of
subparagraph (A), such excess shall be added to
the excess described in the portion of subpara-
graph (A) of such section which precedes clause
(i) thereof for purposes of applying such section.
(2) 
CORPORATIONS.—In 
the 
case 
of 
a
corporation—
(A) LIMITATION.—Any qualified contribu-
tion shall be allowed only to the extent that the
aggregate of such contributions does not exceed
the excess of the taxpayer’s taxable income (as
determined under paragraph (2) of section
170(b) of such Code) over the amount of all other
charitable contributions allowed under such
paragraph.
(B) CARRYOVER.—Rules similar to the rules
of paragraph (1)(B) shall apply for purposes of
this paragraph.
(c) EXCEPTION TO OVERALL LIMITATION ON ITEMIZED
DEDUCTIONS.—So much of any deduction allowed under
section 170 of such Code as does not exceed the qualified
contributions made during the taxable year shall not be
treated as an itemized deduction for purposes of section 68
of such Code.
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(d) QUALIFIED CONTRIBUTIONS.—For purposes of this
section, the term ‘‘qualified contribution’’ means any chari-
table contribution (as defined in section 170(c) of such
Code)—
(1) made during the period beginning on August
28, 2005, and ending on December 31, 2005, in cash
to an organization described in section 170(b)(1)(A)
of such Code (other than an organization described in
section 509(a)(3) of such Code), and
(2) with respect to which the taxpayer has elect-
ed the application of this section.
In the case of a partnership or S corporation, the election
under paragraph (2) shall be made separately by each part-
ner or shareholder. For purposes of subsection (b)(2), a con-
tribution shall be treated as a qualified contribution only
if the contribution is for relief efforts related to Hurricane
Katrina.
SEC. 302. CHARITABLE DEDUCTION FOR CONTRIBUTIONS
OF FOOD INVENTORIES.
(a) IN GENERAL.—Subsection (e) of section 170 (relat-
ing to certain contributions of ordinary income and capital
gain property) is amended by adding at the end the fol-
lowing new paragraph:
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‘‘(7) APPLICATION OF PARAGRAPH (3) TO CER-
TAIN CONTRIBUTIONS OF FOOD INVENTORY.—For pur-
poses of this section—
‘‘(A) EXTENSION TO INDIVIDUALS.—In the
case of a charitable contribution of apparently
wholesome food—
‘‘(i) paragraph (3)(A) shall be applied
without regard to whether the contribution
is made by a C corporation, and
‘‘(ii) in the case of a taxpayer other
than a C corporation, the aggregate amount
of such contributions for any taxable year
which may be taken into account under this
section shall not exceed 10 percent of the
taxpayer’s net income for such taxable year
from all trades or businesses from which
such contributions were made for such tax-
able year, computed without regard to this
section.
‘‘(B) LIMITATION ON REDUCTION.—In the
case of a charitable contribution of apparently
wholesome 
food, 
notwithstanding 
paragraph
(3)(B), the amount of the reduction determined
under paragraph (1)(A) shall not exceed the