The Feed the Community Act would change federal tax rules (Internal Revenue Code section 170(e)(3)). It would let donations of certain food transportation and storage items receive similar tax treatment to donated food inventory when given to qualifying nonprofit organizations that serve people in need. The bill defines “qualified property” to include fully functional food storage equipment (like industrial refrigerators, freezers, racking, and insulated panels), food transportation vehicles (delivery trucks, vans, trailers, and shipping containers used for food), meal transport equipment (insulated bags, warming boxes, and other thermal carriers), and meal preparation and packing equipment (industrial stoves, ovens, mixers, and sealing or packing machinery). The bill adds limits: a taxpayer can elect that the reduction in basis for qualified property be no greater than 25 percent of the property’s fair market value. It also sets dollar limits taken into account for the taxable year: $500 for meal transport equipment and $15,000 for meal preparation and packing equipment. The change would apply to taxable years beginning after December 31, 2025.
No publicly available information on the bill’s estimated federal budget impact or changes in tax revenue. The bill itself sets limits on how much of a donor’s deduction can be taken into account: a 25% maximum reduction of fair market value for qualified property and dollar caps of $500 (meal transport equipment) and $15,000 (meal preparation and packing equipment).
The bill’s stated purpose is to allow charitable donations of food transportation vehicles and food storage equipment to receive the same tax treatment as charitable donations of food inventory when donated to nonprofits that provide food to communities in need.
No publicly available information.