[Congressional Record (Bound Edition), Volume 145 (1999), Part 4]
[Extensions of Remarks]
[Pages 6086-6087]
[From the U.S. Government Publishing Office, www.gpo.gov]




                       THE GOOD SAMARITAN TAX ACT

                                 ______
                                 

                             HON. TONY HALL

                                of ohio

                    in the house of representatives

                        Thursday, March 25, 1999

  Mr. HALL of Ohio. Mr. Speaker, I rise today with my colleague from 
New York, Mr. Houghton, to introduce legislation to amend the Internal 
Revenue Code to make it easier for businesses and farmers to donate 
food to food banks.
  It can be expensive to provide food for the poor. The food must be 
collected, packaged, perhaps refrigerated or frozen, and transported, 
before it can be distributed to food banks, soup kitchens, homeless 
shelters and other organizations that serve the hungry. Because of 
this, it could make more economic sense for the businesses to discard 
unsold but edible food than to donate it. Indeed, billions of pounds of 
food are thrown away each year.
  To encourage greater charitable contributions, we believe that 
businesses and farmers who donate food ought to receive the same types 
of tax incentives as do businesses who donate other types of inventory. 
This is not always the case.
  The Good Samaritan Tax Act would do two things. First, it would 
equalize tax treatment of donations of food and other inventory. 
Secondly, all businesses, not just corporations, would be eligible for 
this favorable tax treatment if they donate food.
  This bill has been endorsed by both industry and charitable 
organizations that deal with food including Second Harvest, National 
Council of Chain Restaurants, National Farmers Union and Food Chain.
  The text of the bill follows:

                                H.R. --

       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 Tax Act''.

     SEC. 2. CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD 
                   INVENTORY.

       (a) In General.--Subsection (e) of section 170 of the 
     Internal Revenue Code of 1986 (relating to certain 
     contributions of ordinary income and capital gain property) 
     is amended by adding at the end the following new paragraph:
       ``(7) Special rule for contributions of food inventory.--
       ``(A) Contributions by non-corporate taxpayers.--In the 
     case of a charitable contribution of food, paragraph (3) 
     shall be applied without regard to whether or not the 
     contribution is made by a corporation.

[[Page 6087]]

       ``(B) Determination of fair market value.--For purposes of 
     this section, in the case of a charitable contribution of 
     food which is a qualified contribution (within the meaning of 
     paragraph (3), as modified by subparagraph (A) of this 
     paragraph) and which, solely by reason of internal standards 
     of the taxpayer, lack of market, or similar circumstances, 
     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, or such circumstances, and
       ``(ii) if applicable, by taking into account the price at 
     which the same or similar food items are sold by the taxpayer 
     at the time of the contribution (or, if not so sold at such 
     time, in the recent past).''
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     1999.

     

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