[Congressional Record Volume 153, Number 61 (Tuesday, April 17, 2007)]
[Senate]
[Page S4612]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. MURKOWSKI:
  S. 1132. A bill to amend the Internal Revenue Code of 1986 to allow 
Indian tribes to receive charitable contributions of apparently 
wholesome food; to the Committee on Finance.
  Ms. MURKOWSKI. Mr. President, I rise to introduce a bill that will 
help increase the amount of food donations going to American Indians 
and Alaska Natives nationwide.
  Unfortunately, the poverty rate among American Indians and Alaska 
Natives continues to be high. Specifically, the poverty rate for our 
Nation's American Indians and Alaska Natives is over three times that 
of non-Hispanic whites, according to the U.S. Census Bureau. Not only 
do natives face greater challenges in securing basic household 
necessities, but in securing food as well.
  According to a 2005 U.S. Department of Agriculture report, 35.1 
million Americans face challenges in getting enough food to eat. This 
includes 12.4 million children. Of these statistics, Natives constitute 
a disproportionate number due to the higher poverty rate among this 
group.
  And yet, charitable organizations that provide hunger relief are 
unable to meet the basic needs of Natives due to an oversight in the 
federal tax code. Section 170(e)(3) of the Internal Revenue Code allows 
corporations to take an enhanced tax deduction for donations of food; 
however, the food must be distributed to 501(c)(3) nonprofit 
organizations, such as food banks. Nonprofit organizations cannot then 
transfer such donations to tribes. Although many donations to tribes 
are tax deductible under section 7871 of the Internal Revenue Code, 
tribes are not among the organizations listed under Section 501(c)(3) 
of the Internal Revenue Code. To clarify, section 170(e)(3) does not 
allow tribes to be eligible recipients of corporate food donations to 
nonprofit organizations since they are not listed under Section 
501(c)(3) as an eligible entity.
  With this legislation, I intend to make a simple correction to the 
tax code that clearly indicates that tribes are eligible recipients of 
food donated under section 170(e)(3) of the Internal Revenue Code. This 
correction is long overdue and would remedy an egregious inequity in 
the Federal tax code that affects natives nationwide.
  Please allow me to provide a few examples of how this legislation 
could foster positive change. In Alaska, approximately half of the food 
donated to the Food Bank of Alaska from corporations could go to tribes 
throughout Alaska. Much of this food would go to villages that are only 
accessible by air or water. In South Dakota, roughly 30 percent of the 
food the Community Food Banks of South Dakota distributes could go to 
reservations. In North Dakota, the amount of food donated to the Great 
Plains Food Bank could double if this legislation were enacted. The 
Montana Food Bank Network projects that food donations could increase 
by 16 percent. A food bank based in Albuquerque, NM, estimates that 
their food donations could triple in the first year alone.
  It is imperative that we address this important issue expeditiously. 
The health and well-being of low income American Indians and Alaska 
Natives across the Nation is at stake.
  I ask unanimous consent that the text of this bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record as follows:

                                S. 1132

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. CHARITABLE CONTRIBUTIONS OF APPARENTLY WHOLESOME 
                   FOOD TO INDIAN TRIBES.

       (a) In General.--Section 170(e)(3) of the Internal Revenue 
     Code of 1986 (relating to special rule for contributions of 
     inventory and other property) is amended--
       (1) by redesignating subparagraph (E) as subparagraph (F); 
     and
       (2) by inserting after subparagraph (D) the following new 
     subparagraph:
       ``(E) Special rule for indian tribes.--
       ``(i) In general.--For purposes of this paragraph, an 
     Indian tribe (as defined in section 7871(c)(3)(E)(ii)) shall 
     be treated as an organization eligible to be a donee under 
     subparagraph (A) with respect to apparently wholesome food 
     (as defined in 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)) 
     only.
       ``(ii) Use of property.--For purposes of subparagraph 
     (A)(i), if the use of the apparently wholesome food donated 
     is related to the exercise of an essential governmental 
     function of the Indian tribal government (within the meaning 
     of section 7871), such use shall be treated as related to the 
     purpose or function constituting the basis for the 
     organization's exemption.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.
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