II 111th CONGRESS 1st Session S. 2841 IN THE SENATE OF THE UNITED STATES December 7, 2009 Mr. Burris introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to allow S corporations the deduction for charitable contributions of inventory.

1.

Short title

This Act may be cited as the S Corporation Inventory Contribution Act of 2009.

2.

S corporations allowed deduction for charitable contributions of inventory

(a)

In general

Section 170(e)(3)(A) of the Internal Revenue Code of 1986 (relating to certain contributions of inventory and other property) is amended by striking (other than a corporation which is an S corporation). (b)

Limitation

Section 170(e)(3)(A) of such Code is amended by adding at the end the following flush sentence: In the case of a taxpayer other than a C corporation, the aggregate amount of such contributions for any taxable year which may be taken into account under this subparagraph shall not exceed 10 percent of the taxpayer's aggregate net income for such taxable year from all trades or businesses from which such contributions were made, computed without regard to this section.. (c)

Conforming amendments

(1)Subclause (I) of section 170(c)(3)(C)(i) of such Code is amended by striking C corporation and inserting corporation. (2)Subparagraph (C) of section 170(c)(3) of such Code is amended by striking clause (ii) and by redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively. (d)

Effective date

The amendments made by this section shall apply to contributions made after December 31, 2009, and to taxable years ending after such date.