H.R. 7317 - Further Incentivizing Nutritious Donations of Food (FIND Food) Act of 2022

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

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 withthe 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.