Good Sam Tax Release
CONGRESS CONSIDERS CRITICAL TAX LEGISLATION TO
HELP HUNGRY AMERICANS ACCESS MORE FOOD
Charitable Incentive Provisions Would Dramatically Increase Charitable Donations
CHICAGO, April 19, 2006—Congress is currently considering critical tax legislation, the Tax Extension Reconciliation Act of 2005 (H.R. 4297), that would provide an incentive for more businesses to make charitable donations, ultimately providing millions additional meals for low-income Americans.
The Senate Finance Committee approved a tax
reconciliation bill in November 2005 that contains numerous charitable giving
provisions, including the Good Samaritan Hunger Relief Tax Incentive Act (S.
94). The provisions in the Senate tax bill would provide an enhanced tax
deduction for all business taxpayers—including large companies and small
businesses—that is equal to the fair market value or twice the taxpayer’s cost
or basis (whichever is less) of the food donation. The House version of
the tax reconciliation bill (H.R. 4297) currently does not include the
charitable tax provisions, and a Conference Committee is expected to reach an
agreement on a final bill in the next few weeks.
“With more than 38 million Americans living on the
brink of hunger, passage of the Good Samaritan Hunger-Relief Tax Incentive Act
provision would be a monumental breakthrough in our business of feeding
low-income Americans,” said Vicki Escarra, president and chief executive officer
of America's Second Harvest—The Nation’s Food Bank Network. “As demands
continue to rise, and our Network needs more food, it is critical for businesses
to have strong incentives to make charitable donations like those included in
the Senate version of the tax reconciliation bill.”
The Senate version of the bill would allow business
taxpayers who typically use a cash method of accounting, such as farmers, to
estimate 25 percent of the fair market value of the donated product to determine
its costs or basis. The important charitable provisions for increased food
and grocery product donations are in Section 203 of H.R. 4297.
“For several years, we have seen Congress debate the
passage of a charitable tax incentive,” said Escarra. “Now is the time to
cast a vote to help low-income Americans access more food.”
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America's Second Harvest--The Nation's Food Bank Network is the largest charitable domestic hunger-relief organization in the country with a Network of more than 200 Member food banks and food-rescue organizations serving all 50 states, the District of Columbia and Puerto Rico. The America's Second Harvest Network secures and distributes more than 2 billion pounds of donated food and grocery products annually; and supports approximately 50,000 local charitable agencies operating more than 94,000 programs including food pantries, soup kitchens, emergency shelters, after-school programs and Kids Cafes. Last year, the America's Second Harvest Network provided food assistance to more than 25 million low-income hungry people in the United States, including nearly 9 million children and nearly 3 million seniors. For more on the America's Second Harvest Network, please visit www.secondharvest.org.
Contact:
MAURA DALY
Office: 312.641.6421
Cell: 301.943.3733
