Expanding and Permanently Extending Corporate Tax Deductions for Food Donations (H.R. 4719)

What is H.R. 4719?

(Updated January 31, 2017)

This bill would expand and make permanent a tax deduction for corporate food donations. Since its inception in 1976, the tax deduction for food inventory from corporations was limited to C-corporations. This bill would make that deduction--which, at present, has lapsed--permanent, while also extending the deduction to S-corporations. While the differences are ultimately more detailed, C-corporations pay taxes at the corporate level, while S-corporations pay no federal income tax. 

Argument in favor

Gives companies a tax break for donating food to hungry people.

Argument opposed

That tax break translates to $900 million in federal revenue loss over five years.

Impact

The bill impacts what corporate entities can receive a tax deduction for donating food inventory.

Cost of H.R. 4719

The Joint Tax Committee estimates that deductions on tax revenue would be $900 million over five years and $1.9 billion over 10 years.

Additional Info

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(Photo Credit: Flickr/Eric)