Hunger is a serious problem both in Kentucky and across the U.S. that has only grown worse in the current recession. Nationwide, nearly seventy-five percent of food banks report that they are not able to adequately meet the needs of their communities. In an effort to combat this growing problem, Congressman Davis and Congressman Sandy Levin (D-MI) have joined together and introduced legislation that would provide tax incentives for small businesses, farmers and ranchers to donate their unsold food inventory to charity.
The consequences of hunger are difficult to overstate. Hunger puts our children’s health, learning, and development at risk; hunger causes unnecessary pain and suffering on already stressed working poor families; and hunger forces the elderly to make difficult choices between buying food or medicine. Despite the rising number of hungry Americans, the USDA estimates that more than a billion pounds of food is being thrown away and filling landfills. We cannot continue to allow unnecessary food waste in the face of such an epidemic.
Under current law, businesses that donate food inventory to charity are eligible for a special deduction equal to their basis in the inventory plus one half the gain that would have been realized had the product been sold. Unfortunately, the eligibility of businesses that are not C corporations is set to expire at the end of this year. Permanently extending this deduction for contributions of food inventory to all business taxpayers will provide needed additional resources to food banks and soup kitchens across America.
Because the need is so great in the current economic environment, Congressman Davis’ legislation would temporarily allow taxpayers to deduct the full fair market value of food inventory donations. This temporary increase in the amount of the deduction will help businesses defray the cost of donations and help ensure that they continue to have a strong incentive to donate food at a time when the need is particularly acute.
View the legislation
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Learn about Congressman Davis' efforts to fight hunger and ensure sufficient tax incentives to prevent nourishing food from being wasted.
September 1, 2009:
New Legislation to Help Kentucky's Hungry Families
July 15, 2009:
Reps. Geoff Davis and Sandy Levin Introduce Tax Incentives for Charitable Food Donations
