Good Samaritan Hunger Relief Tax Incentive Extension Act

Senator Lugar introduced the Good Samaritan Hunger Relief Tax Incentive Extension Act to extend and expand provisions that allow farmers and small business owners to receive a tax deduction for donating food products to food banks, pantries and homeless shelters.  Similar provisions were included in the Pension Protection Act of 2006 (Public Law 109-280), but only for donations made in calendar years 2006 and 2007.
 
Current law permits businesses to deduct from their taxes a donation equal to either 1) twice cost basis; or 2) the difference of cost basis plus one half the difference between cost basis and fair market value.   Food donations from all sizes of businesses can qualify for this type of donation.  Senator Lugar’s recently introduced bill would increase the valuation to full market value of the donation and make this provision a permanent part of the Internal Revenue Code.

“Demand on food banks has been rising, and these tax deductions would be an important step in increasing private donations to the non-profit hunger relief charities playing a critical role in meeting America’s nutrition needs,” Senator Lugar said.

A study by the U.S. Conference of Mayors confirmed demand for food at food banks has risen 100 percent. Forty-eight percent of people requesting emergency food assistance are either children or their parents.  The number of elderly persons requesting food assistance has increased by 92 percent.  As unemployment rates have risen and the price of gas and heating oil has fluctuated, the demand placed on food banks and soup kitchens has also increased.

“Private food banks provide a key safety net against hunger.  According to a report by the U.S. Department of Agriculture, 31 million Americans live on the edge of hunger.  USDA statistics show that up to 96 billion pounds of food go to waste each year in the United States.  If a small percentage of this wasted food could be redirected to food banks, we could make important strides in our fight against hunger,” Senator Lugar said.

Lugar Pilots Expansion

Senator Lugar also introduced a bill with Sens. Ted Kennedy (D-MA) and Saxby Chambliss (R-GA) to expand the Lugar Pilots program nationwide. 

The Lugar Pilots program is part of the Summer Food Service Program (SFSP) which has operated in 13 states (including Indiana) and Puerto Rico since 2001.  Senator Lugar successfully worked in 2004 and 2005 to make the program permanent.  As a result of his legislative efforts, a total of 26 states and Puerto Rico currently participate in the program.  In 2004, he won access for non-profit organizations to administer summer feeding programs. 

“The need to feed youth in the summer time is a nationwide problem and it is clear we have a proven method.  I hope that we can extend the Lugar Pilots to all 50 states as quickly as possible, and I appreciate Senators Kennedy and Chambliss joining me in this effort,” Senator Lugar said.

According to the U.S. Department of Agriculture, the 13 original Lugar Pilot states have increased participation by 43.3 percent while non-participating states have decreased participation by 14.6 percent.

The SFSP was created by Congress in 1969 to help fill the gap in low-income neighborhoods by providing needy children with the nutrition they need to learn, play and grow throughout the summer months when school lunches are not provided.  Senator Lugar recognized, however, that too many schools and other potential providers chose not to participate because of bureaucratic red tape in receiving reimbursements.  This lack of participation led to children not having the opportunity to receive summer meals, which is especially concerning because many children in low income homes receive the bulk of their nutrition from school lunches, which are not available during the summer. 

Senator Lugar is a member and former Chairman of the Senate Agriculture, Nutrition and Forestry Committee.  His efforts in child nutrition have been recognized nationally by the National Council of La Raza with a 2004 Capitol Award highlighting his efforts through the years for nutrition programs for low-income Americans, especially children.  Senator Lugar also has been recognized by FRAC and the School Nutrition Association, among others, for his work in child nutrition.

Internationally, he has been honored by the Friends of the World Food Program with the Leaders in the Fight Against Hunger award for his work to strengthen the U.S. school breakfast and lunch programs, expand food stamps, support food banks, and advance international food aid operations.