[Congressional Record (Bound Edition), Volume 149 (2003), Part 3]
[Extensions of Remarks]
[Page 4115]
[From the U.S. Government Publishing Office, www.gpo.gov]




                       THE GOOD SAMARITAN TAX ACT

                                 ______
                                 

                           HON. AMO HOUGHTON

                              of new york

                    in the house of representatives

                      Thursday, February 13, 2003

  Mr. HOUGHTON. Mr. Speaker, today I am pleased to join my colleague 
from Georgia, John Lewis, in introducing the ``Good Samaritan Tax 
Act'', a bill that has been introduced in three previous Congresses. 
Former Congressman Tony Hall (OH), now our Ambassador to the United 
Nations Agencies for Food and Agriculture, who originally initiated 
this proposal, was a cosponsor of the prior bills and the leading 
advocate for feeding the less fortunate.
  The purpose of the bill is to help meet the demand for food for the 
needy. The end of the economic boom has increased the need for 
additional resources to feed the hungry. In fact, as more and more 
citizens are removed from the welfare rolls, or lose their jobs, many 
turn to food banks for help.
  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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