Food Inventory Giving Incentive

The food inventory giving incentive permits grocery stores, farmers, ranchers, small businesses, and restaurateurs to donate wholesome food for hungry Americans and have the same access as corporations to the enhanced tax deduction for contributions of food inventory. The enhanced deduction for food inventory had previously been available only for larger corporations.

Status
A one-year extension of the food inventory incentive is included in a tax extenders package the House passed on December 9. The Tax Extenders Act of 2009 (HR 4213) would also extend for one year the IRA charitable rollover, and enhanced deductions for donations of conservation easements, computers and books.

Rep. Sander Levin (D-MI) introduced a bill (HR 3227) in July to permanently extend the food inventory deduction incentive and modify the rules for determining the basis of the deduction. Senator Richard Lugar (R-IN) introduced similar legislation (S 1313) in the Senate.

Background
The food inventory giving incentive was enacted in 2006 as a part of the Pension Protection Act. It was set to expire at the end of 2007, but it was extended through 2009 as part of the Emergency Economic Stabilization Act of 2008.

Last updated: December 10, 2009