I 
111TH CONGRESS 
1ST SESSION H. R. 3227 
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 
JULY 15, 2009 
Mr. LEVIN (for himself and Mr. DAVIS of Kentucky) 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 
VerDate Nov 24 2008 
03:04 Jul 16, 2009
Jkt 079200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H3227.IH
H3227
jbell on DSKDVH8Z91PROD with BILLS
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-
VerDate Nov 24 2008 
03:04 Jul 16, 2009
Jkt 079200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H3227.IH
H3227
jbell on DSKDVH8Z91PROD with BILLS
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) SPECIAL RULE FOR CONTRIBUTIONS IN 2009 
AND 2010.—Subparagraph (C) of section 170(e)(3) of 
such Code, as amended by subsections (a), (b), and (c), 
is amended by adding at the end the following: 
‘‘(vi) SPECIAL
RULE
FOR
2009
AND 
2010.—In the case of any such contribution 
during any taxable year beginning in 2009 
or 2010, notwithstanding subparagraph 
VerDate Nov 24 2008 
03:04 Jul 16, 2009
Jkt 079200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H3227.IH
H3227
jbell on DSKDVH8Z91PROD with BILLS
(B), the amount of the reduction deter-
mined under paragraph (1)(A) shall not 
exceed the amount by which the fair mar-
ket value of the apparently wholesome food 
exceeds twice the basis of such food.’’. 
(e) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), 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. 
(2) SPECIAL RULE FOR 2009 AND 2010.—The 
amendment made by subsection (d) shall apply to 
contributions made in taxable years beginning after 
December 31, 2008. 
Æ 
VerDate Nov 24 2008 
03:04 Jul 16, 2009
Jkt 079200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6301
E:\BILLS\H3227.IH
H3227
jbell on DSKDVH8Z91PROD with BILLS