[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7317 Introduced in House (IH)]
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117th CONGRESS
2d Session
H. R. 7317
To amend the Internal Revenue Code of 1986 to incentivize food donation
through tax credits and deductions, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 31, 2022
Ms. Brown of Ohio (for herself, Ms. Pingree, Mr. Keller, and Mr.
Balderson) introduced the following bill; which was referred to the
Committee on Ways and Means
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A BILL
To amend the Internal Revenue Code of 1986 to incentivize food donation
through tax credits and deductions, and for other purposes.
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 ``Further Incentivizing Nutritious
Donations of Food Act of 2022'' or the ``FIND Food Act of 2022''.
SEC. 2. EXPANSION OF CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD
INVENTORY.
(a) Nonprofit Retail Sales.--Section 170(e)(3)(C) of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
clause:
``(vii) Nonprofit retail sale.--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 holds such food for
nonprofit retail sale at a good Samaritan
reduced price. For purposes of the preceding
sentence, the term `good Samaritan reduced
price' means a price that is an amount not
greater than the cost of handling,
administering, and distributing such food.''.
(b) Effective Date.--The amendment 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.
SEC. 3. TAX DEDUCTION FOR THE COST OF TRANSPORTING DONATED FOOD.
(a) In General.--Section 170(e) of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraph:
``(8) Special rule for certain out-of-pocket expenses in
giving services related to charitable contribution of food.--
``(A) Qualified contributions.--For purposes of
this paragraph, the term `qualified contribution' means
the transportation costs (or any portion thereof) paid
or incurred by the taxpayer with respect to the
conveyance of a charitable contribution of food,
including the coordination or arrangement of
transportation services, determined without regard to
whether the contribution is made by a C corporation to
an organization which is described in section 501(c)(3)
and exempt from tax under section 501(a) (other than a
private foundation as defined in section 509(a), which
is not an operating foundation as defined in section
4942(j)(3)), but only if--
``(i) the use of the charitable
contribution of food by the donee is related to
the purpose or function constituting the basis
for the organization's exemption under section
501(a), and the food is to be used by the donee
solely for the care of the ill, the needy, or
infants, and
``(ii) the taxpayer receives from the donee
a written statement representing that the
transportation costs resulted from the
conveyance or arrangement of conveyance of a
charitable contribution of food and that use
and disposition of the food will be in
accordance with the provisions of clause (i).
``(B) Amount of reduction.--The reduction under
paragraph (1)(A) for any qualified contribution (as
defined in subparagraph (A)) that is a charitable
contribution of food shall be equal to 100 percent of
the costs paid or incurred by the taxpayer in
connection with the transportation of such charitable
contribution of food.
``(C) 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, 10 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, 10
percent of taxable income (as defined in
subsection (b)(2)(D)).''.
(b) Effective Date.--The amendment 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.
SEC. 4. TAX CREDIT FOR FOOD DONATION BY FARMERS.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45U. FARMERS FOOD DONATION CREDIT.
``(a) Allowance of Credit.--For purposes of section 38, the farmers
food donation credit determined under this section for the taxable year
is an amount equal to 50 percent of the fair market value of the
qualified donation by an eligible farmer to any organization which is
described in section 501(c)(3) and exempt from tax under section 501(a)
(other than a private foundation as defined in section 509(a), which is
not an operating foundation as defined in section 4942(j)(3)).
``(b) Maximum Credit.--The credit determined under this section
with respect to any eligible farmer for any taxable year shall not
exceed $20,000.
``(c) Eligible Farmer.--The term `eligible farmer' means any
taxpayer engaged in the trade or business of farming.
``(d) Qualified Donation.--The term `qualified donation' means a
food crop (including roots, seeds, parts, or products thereof) grown by
the taxpayer in the United States that is donated and intended to be
used by a donee that is a food bank to provide food to the needy.
``(e) Denial of Double Benefit.--No deduction shall be allowed
under this chapter for any amount taken into account in determining the
credit under this section.''.
(b) Credit Made Part of General Business Credit.--Subsection (b) of
section 38 of the Internal Revenue Code of 1986 is amended by striking
``plus'' at the end of paragraph (32), by striking the period at the
end of paragraph (33) and inserting ``, plus'', and by adding at the
end the following new paragraph:
``(34) the farmers food donation credit under section
45U.''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 is amended by adding at the end
the following new item:
``Sec. 45U. Farmers food donation credit.''.
(d) Effective Date.--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 the date of the enactment of this
section.
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