[Congressional Record (Bound Edition), Volume 147 (2001), Part 5]
[Extensions of Remarks]
[Page 6668]
[From the U.S. Government Publishing Office, www.gpo.gov]



THE GOOD SAMARITAN TAX ACT: TO AMEND THE INTERNAL REVENUE CODE OF 1986 
    TO CLARIFY THE AMOUNT OF THE CHARITABLE DEDUCTION ALLOWABLE FOR 
                    CONTRIBUTIONS OF FOOD INVENTORY

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                           HON. AMO HOUGHTON

                              of new york

                    in the house of representatives

                          Tuesday, May 1, 2001

  Mr. HOUGHTON. Mr. Speaker, today, I am pleased to join my colleagues 
from Ohio, Tony Hall, in introducing the ``Good Samaritan Tax Act'', a 
bill that has been introduced in the two previous Congresses. The 
purpose is to help meet the demand for food for the needy. The economic 
boom of recent years has not eliminated the need to feed the hungry. In 
fact, as more and more citizens are removed from the welfare rolls many 
turn to food banks for help.
  A recent U.S. Department of Agriculture report indicated that in 
1999, 10 percent of American households, comprising 31 million 
individuals (including 12 million children), suffer from hunger. 
According to a recent Conference of Mayors report, demand for emergency 
food has increased, and over 13 percent of this demand goes unmet.
  The bill would increase the incentives for restaurants, farms and 
other businesses in the food industry to donate food to food banks, 
homeless shelters and other charitable organizations. The Internal 
Revenue Code actually discourages contributions because of the 
uncertainty regarding the tax treatment of donations of food as 
compared to donations of other inventory. The bill has been designed to 
correct that deficiency.
  We believe this bill would remove the uncertainty and provide the 
necessary incentive for businesses to increase their food donations. 
This would be accomplished by adding a provision to Section 170(e) of 
the Code that would indicate that the fair market value of donated food 
is determined, (1) without regard to internal policies, lack of market, 
or similar circumstances, whether the food cannot or will not be sold, 
and, (2) if applicable, by taking into account the price at which 
similar products are sold by the taxpayer at the time of contribution. 
These have been points of controversy with the Internal Revenue 
Service, causing uncertainty as well as disincentives to incur the 
administrative and other costs necessary for the proper handling and 
preservation of food being donated. In addition, Section 170(e) would 
be amended to include businesses in addition to C corporations, as the 
current law provides.
  We hope our colleagues will join us in cosponsoring this legislation.

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