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(Washington D.C.)- Rep. Sander Levin introduced bipartisan legislation with Rep. Geoff Davis of Kentucky today to expand and strengthen a tax deduction that encourages business donations to food banks and pantries. The legislation permanently extends the current tax deduction so that all business taxpayers are eligible and provides a two year increase in the amount of the deduction to address the increased need during the recession and economic recovery.
“Across the country, 36 million people are at risk of hunger,” said Rep. Levin. “Families who have never needed emergency food aid before are now seeking assistance as a result of the current recession. This tax deduction is proven as an effective incentive, and the urgent need requires that we act to expand it.”
Forgotten Harvest, a community service agency based in Oak Park, MI, and the second largest mobile food rescue in the nation, rescues more than 12 million pounds of donated food each year by collecting the donated food from a variety of business sources and distributing it free-of-charge to 150-plus emergency food providers in the metro Detroit area.
“Our food donors tell us the tax deduction for food donation is a critical factor in their business decisions to donate, in addition to their commitments to help people in our community,” said Susan Ellis Goodell, Executive Director of Forgotten Harvest. “Today, we can’t begin to meet the rapidly growing demand for nutritious emergency food from our agencies who feed hungry people. We are confident the legislation that Rep. Levin proposes will ensure that more of the nutritious food currently feeding landfills will instead feed our people in need.”
Nationwide food banks and pantries are seeing a 30% increase in demand for emergency food assistance, with some food banks reporting as high as a 65% increase in need, according to Feeding America. An astonishing 72% of food banks report that they are not able to adequately meet the needs of their communities without adjusting the amount of food distributed due to rising unemployment and food prices.
About the Legislation
Under current law, businesses that donate food inventory to charity are eligible for a special deduction equal to their basis in the inventory plus one half the gain that would have been realized had the product been sold. The eligibility of business that are not C corporations, including farmers and ranchers, is set to expire at the end of this year. Rep. Levin’s legislation would permanently extend this deduction for contributions of food inventory to all business taxpayers. In addition, the legislation would provide a two year temporary increase in the amount of the deduction that business donors can take as a way to address the increased need during the recession and economic recovery.
About Forgotten Harvest
Forgotten Harvest was formed in 1990 to fight two problems: hunger and waste. Forgotten Harvest will rescue more than 12 million pounds of food this year by collecting surplus prepared and perishable food from a variety of sources, including grocery stores, fruit and vegetable markets, restaurants, caterers, dairies, farmers, wholesale food distributors, and other Health Department-approved sources. This donated food, which would otherwise go to waste, is delivered absolutely free of charge to 150-plus emergency food providers in the metro Detroit area. The individuals and families served are as diverse as the community's residents – young and old, from all races and faiths. The common bond uniting them with each other and with Forgotten Harvest is hunger. Visit www.forgottenharvest.org.
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