Feed the Community Act
Summary
The "Feed the Community Act" amends the Internal Revenue Code of 1986, specifically Section 170(e)(3), to provide the same tax treatment for charitable donations of food transportation vehicles and food storage equipment as is currently provided for donations of food inventory. This applies to donations made to nonprofit organizations that provide food to communities in need. The bill aims to incentivize donations of equipment necessary for food storage and transportation.
Expected Effects
This act will likely increase donations of food transportation and storage equipment to food banks and other non-profit organizations. This will enable these organizations to more efficiently and effectively distribute food to those in need. The changes will apply to taxable years beginning after December 31, 2025.
Potential Benefits
- Increased donations of food transportation and storage equipment.
- Improved efficiency for food banks and non-profit organizations.
- Enhanced ability to serve communities in need.
- Potential reduction in food waste due to better storage.
- Incentivizes businesses and individuals to donate equipment.
Potential Disadvantages
- Potential for increased tax deductions, leading to a slight decrease in government revenue.
- Possible administrative burden in verifying the qualified property and its use.
- Risk of misuse or fraudulent donations to claim tax benefits.
- Complexity added to the tax code.
- Limited impact if the demand for such equipment is already being met.
Constitutional Alignment
The "Feed the Community Act" aligns with the general welfare clause of the US Constitution, found in the Preamble. It promotes the general welfare by supporting programs that address food insecurity. The act falls under the legislative powers granted to Congress in Article I, Section 8, which includes the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).