Sec. 201. Extension and expansion of charitable deduction for contributions of food inventory
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Section 170(e)(3)(C) of the Internal Revenue Code of 1986 is amended by striking clause (iv). Section 170(e)(3)(C) of such Code, as amended by subsection (a), is amended by striking clause (ii), by redesignating clause
(iii)as clause (iv), and by inserting after clause
(i)the following new clauses: The aggregate amount of such contributions for any taxable year which may be taken into account under this section shall not exceed— in the case of any taxpayer other than a C corporation, 15 percent of the taxpayer’s aggregate net income for such taxable year from all trades or businesses from which such contributions were made for such year, computed without regard to this section, and in the case of a C corporation, 15 percent of taxable income (as defined in subsection (b)(2)(D)). If such aggregate amount exceeds the limitation imposed under clause (ii), such excess shall be treated (in a manner consistent with the rules of subsection (d)) as a charitable contribution described in clause
(i)in each of the 5 succeeding taxable years in order of time. In the case of any charitable contribution allowable under clause (ii)(II), subsection (b)(2)(A) shall not apply to such contribution, but the limitation imposed by such subsection shall be reduced (but not below zero) by the aggregate amount of such contributions. For purposes of subsection (b)(2)(B), such contributions shall be treated as allowable under subsection (b)(2)(A). . Section 170(e)(3)(C) of such Code, as amended by subsections
(a)and (b), is amended by adding at the end the following new clause: If a taxpayer— does not account for inventories under section 471, and is not required to capitalize indirect costs under section 263A, the taxpayer may elect, solely for purposes of subparagraph (B), to treat the basis of any apparently wholesome food as being equal to 25 percent of the fair market value of such food. . Section 170(e)(3)(C) of such Code, as amended by subsections (a), (b), and (c), is amended by adding at the end the following new clause: In the case of any such contribution of apparently wholesome food which cannot or will not be sold solely by reason of internal standards of the taxpayer, lack of market, or similar circumstances, or by reason of being produced by the taxpayer exclusively for the purposes of transferring the food to an organization described in subparagraph (A), the fair market value of such contribution shall be determined— without regard to such internal standards, such lack of market, such circumstances, or such exclusive purpose, and by taking into account the price at which the same or substantially the same food items (as to both type and quality) are sold by the taxpayer at the time of the contribution (or, if not so sold at such time, in the recent past). . Section 170(e)(3)(C) of such Code, as amended by subsections (a), (b), (c), and (d), is amended by adding at the end the following new clause: For purposes of clause (i), a charitable contribution of food includes a contribution to or for the use of an organization described in subsection
(c)that is a food bank, food pantry, soup kitchen, or other similar organization which holds such food for nonprofit retail sale. For purposes of the preceding sentence, the terms food bank , food pantry , and soup kitchen have the meanings given such terms by section 201A of the Emergency Food Assistance Act of 1983 ( 7 U.S.C. 7501 ). . Except as otherwise provided in this subsection, the amendments made by this section shall apply to contributions made after the date of the enactment of this Act, in taxable years ending after such date. The amendments made by subsection
(b)shall apply to contributions made in taxable years ending after the date of the enactment of this Act.
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Sec. 201
Extension and expansion of charitable deduction for contributions of food inventory
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