I 
112TH CONGRESS 
1ST SESSION H. R. 3729 
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 
DECEMBER 19, 2011 
Mr. DAVIS of Kentucky (for himself and Mr. LEVIN) 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. EXTENSION AND EXPANSION OF CHARITABLE 
DEDUCTION FOR CONTRIBUTIONS OF FOOD 
INVENTORY. 
(a) PERMANENT EXTENSION.—Subparagraph (C) of 
section 170(e)(3) of the Internal Revenue Code of 1986 
is amended by striking clause (iv). 
(b) DETERMINATION
OF BASIS
FOR TAXPAYERS 
OTHER THAN C CORPORATIONS.—Subparagraph (C) of 
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section 170(e)(3) of such Code, as amended by subsection 
(a), is amended by adding at the end the following new 
clause: 
‘‘(iv) 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.’’. 
(c) DETERMINATION OF FAIR MARKET VALUE.— 
Subparagraph (C) of section 170(e)(3) of such Code, as 
amended by subsections (a) and (b), is amended by adding 
at the end the following new clause: 
‘‘(v) DETERMINATION OF FAIR MAR-
KET VALUE.—In the case of any such con-
tribution of apparently wholesome food 
which, solely by reason of internal stand-
ards of the taxpayer, lack of market, or 
similar circumstances, or which is 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), 
cannot or will not be sold, the fair market 
value of such contribution shall be deter-
mined— 
‘‘(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).’’. 
(d) LIMITATION.— 
(1) INCREASE IN PERCENTAGE.—Clause (ii) of 
section 170(e)(3)(C) of such Code is amended by 
striking ‘‘10 percent’’ and inserting ‘‘15 percent’’. 
(2) APPLICABILITY TO C CORPORATIONS.— 
(A) IN GENERAL.—Clause (ii) of section 
170(e)(3)(C) of such Code is amended by strik-
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ing ‘‘In the case of a taxpayer other than a C 
corporation, the’’ and inserting ‘‘The’’. 
(B) COORDINATION
WITH
LIMITATION.— 
Paragraph (3) of section 170(b) of such Code 
is amended to read as follows: 
‘‘(3) CHARITABLE CONTRIBUTIONS OF FOOD.— 
For purposes of paragraph (2)(A)— 
‘‘(A) IN
GENERAL.—Any charitable con-
tribution of food to which subsection (e)(3)(C) 
applies shall be allowed to the extent the aggre-
gate of such contributions does not exceed the 
limitation under subsection (e)(3)(C)(ii). 
‘‘(B) 
CARRYOVER.—If 
the 
aggregate 
amount of contributions described in subpara-
graph (A) exceeds such limitation, such excess 
shall be treated (in a manner consistent with 
the rules of subsection (d)) as a charitable con-
tribution to which subparagraph (A) applies in 
each of the 5 succeeding years in order of 
time.’’. 
(e) EFFECTIVE DATES.—The amendments made by 
this section shall apply to contributions made after the 
date of the enactment of this Act, in taxable years ending 
after such date. 
Æ 
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