Tax credit for donations to charitable organizations that feed ill, needy, or infants

(a)

In general

Subpart B of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

30E.

Donations to charitable organizations that feed ill, needy, or infants

(a)

In general

In the case of a taxpayer who elects the application of this section, there shall be allowed as a credit against the tax imposed by this chapter an amount equal to the qualified charitable donations made by the taxpayer during the taxable year. (b)

Qualified charitable donations

(1)

In general

For purposes of this section, the term qualified charitable donation means any charitable contribution (as defined in section 170(c)) to an organization which is described in section 501(c)(3) and exempt from tax under section 501(a) (other than a private foundation, as defined in section 509(a), which is not an operating foundation, as defined in section 4942(j)(3)), but only if— (A) such contribution is— (i) made in cash, or (ii) is food that is apparently wholesome food, and (B) (i) such contribution is to an organization that is a food bank, soup kitchen, or other organizations that would typically receive donations of food to carry out the purpose or function constituting the basis for the organization’s exemption, and (ii) in the case of a contribution of food, such food is to be used by the organization to carry out such purpose or function. (2)

Certain transportation costs included

Such term shall include an amount to account for the use of a vehicle in the course of delivering a qualified charitable donation of food. Such amount shall not exceed the standard mileage rate in effect under section 170(i) with respect to such use. (c)

Special rules

For purposes of this section— (1)

Denial of double benefit

In the case of a taxpayer who elects the application of this section, no amount taken into account in determining the credit allowed under this section shall be taken into account in determining any deduction or other credit allowed under this chapter. (2)

Carryforward

(A)

In general

If the credit allowable under subsection (a) (and to which subsection (d)(2) applies) for any taxable year exceeds the limitation imposed by section 26(a) for such taxable year reduced by the sum of the credits allowable under subpart A (other than this section and section 25D), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year. (B)

Limitation

No credit may be carried forward under this subsection to any taxable year following the fifth taxable year after the taxable year in which the credit arose. For purposes of the preceding sentence, credits shall be treated as used on a first-in first-out basis. (3)

Substantiation requirements

Rules similar to the rules of section 170(f)(8) shall apply for purposes of contributions taken into account under this section. (d)

Application with other credits

(1)

Business credit treated as part of general business credit

So much of the credit which would be allowed as a credit under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to cash or food from any trade or business of the taxpayer shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)). (2)

Personal credit

For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after the application of paragraph (1)) shall be treated as a credit allowed under subpart A for such taxable year.

(b)

Portion of credit made part of general business credit

Section 38(b) of such Code is amended by striking plus at the end of paragraph (40), by striking the period at the end of paragraph (41) and inserting , plus, and by adding at the end the following new paragraph:

(42) the portion of the credit allowed under section 30E to which subsection (d)(1) thereof applies.

(c)

Conforming amendment

Section 23(c)(1) of such Code is amended by striking and section 25D and inserting and sections 25D and 30E. (d)

Clerical amendment

Subpart B of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

Sec. 30E. Donations to charitable organizations that feed ill, needy, or infants.

(e)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2025.