[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3729 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 3729

 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

                           December 19, 2011

   Mr. Davis of Kentucky (for himself and Mr. Levin) 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) Limitation.--
            (1) Increase in percentage.--Clause (ii) of section 
        170(e)(3)(C) of such Code is amended by striking ``10 percent'' 
        and inserting ``15 percent''.
            (2) Applicability to c corporations.--
                    (A) In general.--Clause (ii) of section 
                170(e)(3)(C) of such Code is amended by striking ``In 
                the case of a taxpayer other than a C corporation, 
                the'' and inserting ``The''.
                    (B) Coordination with limitation.--Paragraph (3) of 
                section 170(b) of such Code is amended to read as 
                follows:
            ``(3) Charitable contributions of food.--For purposes of 
        paragraph (2)(A)--
                    ``(A) In general.--Any charitable contribution of 
                food to which subsection (e)(3)(C) applies shall be 
                allowed to the extent the aggregate of such 
                contributions does not exceed the limitation under 
                subsection (e)(3)(C)(ii).
                    ``(B) Carryover.--If the aggregate amount of 
                contributions described in subparagraph (A) exceeds 
                such limitation, such excess shall be treated (in a 
                manner consistent with the rules of subsection (d)) as 
                a charitable contribution to which subparagraph (A) 
                applies in each of the 5 succeeding years in order of 
                time.''.
    (e) Effective Dates.--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.
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