[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3227 Introduced in House (IH)]

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 contributions of food inventory.

    Be it enacted by the Senate and House of Representatives 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 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 corporations.--If a taxpayer--
                                    ``(I) does not account for 
                                inventories 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 market value.--
                        In the case of any such contribution of 
                        apparently wholesome food which, solely by 
                        reason of internal standards of the taxpayer, 
                        lack of market, or similar circumstances, or 
                        which is produced by the taxpayer exclusively 
                        for the purposes of transferring the food to an 
                        organization described in subparagraph (A), 
                        cannot or will not be sold, the fair market 
                        value of such contribution shall be 
                        determined--
                                    ``(I) without regard to such 
                                internal standards, such lack of 
                                market, such circumstances, or such 
                                exclusive purpose, and
                                    ``(II) by taking into account the 
                                price at which the same or 
                                substantially the same food items (as 
                                to both type and quality) are sold by 
                                the taxpayer 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 (B), the amount of 
                        the reduction determined under paragraph (1)(A) 
                        shall not exceed the amount by which the fair 
                        market value of the apparently wholesome food 
                        exceeds twice the basis of such food.''.
    (e) Effective Dates.--
            (1) In general.--Except as provided in paragraph (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.
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