[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 166 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                 S. 166

 To amend the Internal Revenue Code of 1986 to permanently extend and 
  expand the charitable deduction for contributions of food inventory.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             January 25 (legislative day, January 5), 2011

 Mr. Lugar (for himself and Mr. Leahy) 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 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. SHORT TITLE.

    This Act may be cited as the ``Good Samaritan Hunger Relief Tax 
Incentive Extension Act of 2011''.

SEC. 2. PERMANENT EXTENSION AND EXPANSION OF CHARITABLE DEDUCTION FOR 
              CONTRIBUTIONS OF FOOD INVENTORY.

    (a) In General.--Subparagraph (C) of section 170(e)(3) of the 
Internal Revenue Code of 1986 (relating to special rule for certain 
contributions of inventory and other property) is amended to read as 
follows:
                    ``(C) Special rule for contributions of food 
                inventory.--
                            ``(i) General rule.--In the case of a 
                        charitable contribution of food from any trade 
                        or business of the taxpayer, this paragraph 
                        shall be applied--
                                    ``(I) without regard to whether the 
                                contribution is made by a C 
                                corporation, and
                                    ``(II) only to food that is 
                                apparently wholesome food.
                            ``(ii) Limitation on reduction.--In the 
                        case of any such contribution, 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.
                            ``(iii) Determination of basis.--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 50 
                        percent of the fair market value of such food.
                            ``(iv) 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).
                            ``(v) Apparently wholesome food.--For 
                        purposes of this subparagraph, the term 
                        `apparently wholesome food' has the meaning 
                        given to such term by section 22(b)(2) of the 
                        Bill Emerson Good Samaritan Food Donation Act 
                        (42 U.S.C. 1791(b)(2)), as in effect on the 
                        date of the enactment of this subparagraph.''.
    (b) Effective Date.--The amendment 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.
                                 <all>