[Congressional Record Volume 153, Number 33 (Tuesday, February 27, 2007)]
[Senate]
[Page S2276]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LUGAR (for himself and Mrs. Lincoln):
  S. 689. A bill to amend the Internal Revenue Code of 1986 to 
permanently extend and expand the charitable deduction for 
contributions of food inventory; to the Committee on Finance.
  Mr. LUGAR. Mr. President, on behalf of myself and Senator Lincoln, I 
rise today to introduce the ``Good Samaritan Hunger Relief Tax 
Incentive Extension Act of 2007''. This important legislation extends 
and expands the food bank donation provisions that were included in the 
Pension Protection Act of 2006 (Public Law 109-280). The Pension 
Protection Act allows farmers and small business owners to receive a 
tax deduction for donation of food products contributed to food banks, 
pantries and homeless shelters for 2006 and 2007.
  The new law permits businesses a deduction from their taxes for a 
donation equal to either (1) twice cost basis; or (2) the difference of 
cost basis plus one half the difference between cost basis and fair 
market value. Food donations of all sizes from all businesses can 
qualify for this type of donation. The bill that I am introducing today 
increases the valuation to full market value of the donation and makes 
this provision a permanent part of the Internal Revenue Code.
  Demand on food banks has been rising, and these tax deductions would 
be an important step in increasing private donations to the non-profit 
hunger relief charities playing a critical role in meeting America's 
nutrition needs. It is estimated that food banks provide meals to more 
than 23 million Americans and that 13 million children are hungry or at 
risk of hunger.
  As I have traveled around Indiana, I have visited many food banks in 
our State. They have confirmed the results of a study by the U.S. 
Conference of Mayors that showed demand for food at food banks has 
risen one hundred percent. Forty-eight percent of the people requesting 
emergency food assistance are either children or their parents. The 
number of elderly persons requesting food assistance has increased by 
ninety-two percent. The success of welfare reform legislation has moved 
many recipients off welfare and into jobs. In many States, welfare 
roles have been reduced by more than half. But we need to recognize 
that these individuals and their families are living on modest wages. 
As unemployment rates have risen, as with the fluctuation of the price 
of gas and heating oil, the demand placed on the food banks and soup 
kitchens has also increased.
  Private food banks provide a key safety net against hunger. According 
to a report by the U.S. Department of Agriculture, 31 million Americans 
are living on the edge of hunger. USDA statistics show that up to 96 
billion pounds of food go to waste each year in the United States. If a 
small percentage of this wasted food could be redirected to food banks, 
we could make important strides in our fight against hunger.
  I have been especially impressed by the remarkable work of food banks 
in Indiana. In many cases, they are partnered with churches and faith-
based organizations and are making a tremendous difference in our 
communities. We should support this private sector activity, which not 
only feeds people, but also strengthens community bonds and 
demonstrates the power of faith, charity, and civic involvement.
  Each citizen can make an important contribution to the fight against 
hunger at a local level. It is important to make sure that none of us 
forget those who find themselves having to utilize the services of the 
food banks. In order to ensure that hunger relief organizations are 
meeting the greater demand they are seeing, we must make food drives a 
part of everyday activities. People should get in the habit of buying 
extra cans or boxes of food on every trip to the grocery store, not 
just around the holiday season.
  I am committed to work with Chairman Baucus and Ranking Member 
Grassley to find an offset to pay for this change to the tax code. I 
would like to thank them for their past support of this initiative and 
commend them on their efforts in helping America's charities meet their 
funding goals, and assist those individuals who take advantage of the 
services provided by these groups.
  I believe the enactment of this legislation would be a great 
incentive in redirecting this food from being discarded to being 
distributed to hungry families.
                                 ______