ASSEMBLY RESOLUTION No. 193

STATE OF NEW JERSEY

216th LEGISLATURE

 

INTRODUCED DECEMBER 4, 2014

 

 

Sponsored by:

Assemblyman  TIMOTHY J. EUSTACE

District 38 (Bergen and Passaic)

Assemblyman  BOB ANDRZEJCZAK

District 1 (Atlantic, Cape May and Cumberland)

Assemblyman  DANIEL R. BENSON

District 14 (Mercer and Middlesex)

Assemblyman  RAJ MUKHERJI

District 33 (Hudson)

 

 

 

 

SYNOPSIS

     Urges the United States Congress to enhance the charitable food donation deduction.

 

CURRENT VERSION OF TEXT

     As introduced.

  

An Assembly Resolution respectfully urging the United States Congress to enhance the charitable food donation deduction.

 

Whereas, The United States Congress has the Article I power to lay and collect taxes to promote the general welfare of the country; and

Whereas, The United States Congress has used this power to provide a charitable food donation income tax deduction; and

Whereas, The national demand for charitable food assistance has increased dramatically over the last decade; and

Whereas, An estimated 70 billion pounds of wholesome food is wasted each year; and

Whereas, New Jersey has also experienced an increase in demand for food assistance notwithstanding the efforts of charitable organizations like the New Jersey Agricultural Society and its New Jersey Farmers Against Hunger program, which distributes approximately 1 to 1.5 million pounds of food annually; and

Whereas, The United States Congress is considering the America Gives More Act to expand the charitable food donation deduction to 15 percent of qualified income and allow farmers and other cash method accounting taxpayers to use a 25 percent fair market value basis for donated food; and

Whereas, The America Gives More Act charitable food donation deduction enhancements will reduce barriers for food donation; and

Whereas, Without these enhancements to the food donation deduction, millions of pounds of food from large and small businesses and farmers will be lost; and

Whereas, It is altogether fitting and proper for this House to promote the general welfare by respectfully urging the United States Congress to enhance the charitable food donation deduction; now, therefore,

 

     Be It Resolved by the General Assembly of the State of New Jersey:

 

     1.    The United States Congress is respectfully urged to enhance the charitable food donation deduction of section 170(e)(3)(C) of the federal Internal Revenue Code.         

 

     2.    Duly authenticated copies of this General Assembly Resolution, signed by the Speaker of the General Assembly and attested to by the Clerk thereof, shall be transmitted to the Majority and Minority Leaders of the United States Senate, the Speaker and Minority Leader of the United States House of Representatives, and to every member of Congress elected from this great State.

STATEMENT

 

     This Assembly Resolution respectfully urges the United States Congress to enhance the charitable food donation deduction.  Currently, the federal income tax offers a charitable deduction for donations of wholesome food.  This resolution seeks the enhancement of that deduction by:

·     Increasing the allowable deduction to 15 percent of qualified income; and

·     For qualified taxpayers, enabling the use of a 25 percent fair market value basis for donated food. 

These changes to the charitable food donation deduction are as proposed under pending federal legislation entitled the America Gives More Act.

     With the Feeding America Network recording an estimated 46 percent increase in food assistance demand over the last decade and approximately 70 billion pounds of wholesome food wasted annually, the expansion of the charitable food donation deduction is a legislative change that can reduce hunger in our communities.

     In recent years, New Jersey has experienced an increase in demand for food assistance notwithstanding the efforts of charitable organizations like the New Jersey Agricultural Society and its New Jersey Farmers Against Hunger program, which distributes approximately 1 to 1.5 million pounds of food annually.  The enhancements to the food donation deduction proposed under the America Gives More Act will reduce barriers for food donation and improve charitable food distribution programs like the New Jersey Farmers Against Hunger program.