Sec. 113. EXTENSION AND MODIFICATION OF CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD INVENTORY
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## SEC. 113 EXTENSION AND MODIFICATION OF CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD INVENTORY ###
(a)Permanent Extension Section 170(e)(3)(C) is amended by striking clause (iv). ###
(b)Modifications Section 170(e)(3)(C), as amended by subsection (a), is amended by striking clause (ii), by redesignating clause
(iii)as clause (vi), and by inserting after clause
(i)the following new clauses: > > ###### “(ii) Limitation > > The aggregate amount of such contributions for any taxable year which may be taken into account under this section shall not exceed— > > > ###### “(I) > > 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 > > > ###### “(II) > > in the case of a C corporation, 15 percent of taxable income (as defined in subsection (b)(2)(D)). > > > ###### “(iii) Rules related to limitation > > > ###### “(I) Carryover > > 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. > > > ###### “(II) Coordination with overall corporate limitation > > In the case of any charitable contribution which is allowable after the application of 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). > > > ###### “(iv) Determination of basis for certain taxpayers > > If a taxpayer— > > > ###### “(I) > > does not account for inventories under section 471, and > > > ###### “(II) > > 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. > > > ###### “(v) Determination of fair market value > > 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— > > > ###### “(I) > > without regard to such internal standards, such lack of market, such circumstances, or such exclusive purpose, and > > > ###### “(II) > > 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).” > ###
(c)Effective Dates **[**[26 U.S.C. 170 note](/us/usc/t26/s170)**]** ####
(1)Extension The amendment made by subsection
(a)shall apply to contributions made after December 31, 2014. ####
(2)Modifications The amendments made by subsection
(b)shall apply to taxable years beginning after December 31, 2015.
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Sec. 113
EXTENSION AND MODIFICATION OF CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD INVENTORY
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