New legislation! Tax incentive for farmers donating food to charity!

[theHandpuppet]

http://www.secondharvest.org/news_room/2006_News_Releases/080406.html

SENATE PASSES LANDMARK LEGISLATION GENERATING UP TO $250 MILLION DOLLARS IN NEW FOOD DONATIONS FOR HUNGRY AMERICANS

A Statement From Vicki Escarra, President & CEO

CHICAGO, August 4, 2006—“The US Senate voted last night to extend a new tax incentive for the donation of food to charities as part of the Pension Reform Bill that will generate an estimated more than $250 million in new private sector food donations over the next 24 months. This represents a major victory for America's Second Harvest—The Nation's Food Bank Network, food donors and the 25 million Americans—including 9 million children and nearly 3 million seniors—our food banks and food-rescue organizations serve each year.

For the first time in the history of the United States, all business entities – including farms, small businesses, and restaurants – will receive a tax incentive to help in the fight against hunger in their communities. Under previous tax law, only C corporations, generally larger companies, were eligible for the enhanced deduction for donations of food.

The new law means that through 2007, small businesses, farmers, ranchers and restaurateurs have a real incentive to give food for hunger relief and can deduct from their taxes the value of donated food equal to the basis of donated items plus one-half the fair market value, or two times the basis, whichever is less. The Joint Committee on Taxation estimates that more than $250 million in new food will be donated for food banks and other charities through this change. This is a great step forward to help ensure that our food banks have enough food available to meet growing requests for assistance....

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