IB 
Union Calendar No. 371 
113TH CONGRESS 
2D SESSION 
H. R. 4719 
[Report No. 113–498] 
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 
JUNE 26, 2014 
Additional sponsors: Mr. KELLY of Pennsylvania, Mr. NUNES, Mr. GRIFFIN 
of Arkansas, Mr. TIBERI, Mr. PAULSEN, Mr. SCHOCK, Mr. GIBSON, and 
Mr. STIVERS 
JUNE 26, 2014 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on May 22, 2014] 
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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 Incen-
tive Act of 2014’’. 
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 striking 
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 
clauses: 
‘‘(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 percent 
of the taxpayer’s aggregate net income 
for such taxable year from all trades or 
businesses from which such contribu-
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tions were made for such year, com-
puted 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)). 
‘‘(iii) RULES
RELATED
TO
LIMITA-
TION.— 
‘‘(I) CARRYOVER.—If such aggre-
gate amount exceeds the limitation im-
posed under clause (ii), such excess 
shall be treated (in a manner con-
sistent with the rules of subsection (d)) 
as a charitable contribution described 
in clause (i) in each of the 5 suc-
ceeding years in order of time. 
‘‘(II) COORDINATION WITH OVER-
ALL CORPORATE LIMITATION.—In the 
case of any charitable contribution al-
lowable under clause (ii)(II), sub-
section (b)(2)(A) shall not apply to 
such contribution, but the limitation 
imposed by such subsection shall be re-
duced (but not below zero) by the ag-
gregate amount of such contributions. 
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For purposes of subsection (b)(2)(B), 
such contributions shall be treated as 
allowable under subsection (b)(2)(A).’’. 
(c) DETERMINATION OF BASIS FOR CERTAIN TAX-
PAYERS.—Section 170(e)(3)(C) 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 
CERTAIN TAXPAYERS.—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.—Sec-
tion 170(e)(3)(C) of such Code, as amended by subsections 
(a), (b), and (c), is amended by adding at the end the fol-
lowing new clause: 
‘‘(vi) DETERMINATION OF FAIR MAR-
KET VALUE.—In the case of any such con-
tribution of apparently wholesome food 
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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 produced 
by the taxpayer exclusively for the purposes 
of transferring the food to an organization 
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.— 
(1) IN GENERAL.—Except as otherwise provided 
in this subsection, the amendments made by this sec-
tion shall apply to contributions made after December 
31, 2013, in taxable years ending after such date. 
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(2) LIMITATION; APPLICABILITY TO C CORPORA-
TIONS.—The amendments made by subsection (b) 
shall apply to contributions made in taxable years be-
ginning after December 31, 2013. 
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Union Calendar No. 371 
113TH CONGRESS 
2D SESSION 
H. R. 4719 
[Report No. 113–498] 
A BILL 
To amend the Internal Revenue Code of 1986 to 
permanently extend and expand the charitable 
deduction for contributions of food inventory. 
JUNE 26, 2014 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
VerDate Mar 15 2010 
21:41 Jun 26, 2014
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