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.

 On behalf of the America’s Second Harvest Network, I am profoundly grateful for the hard work of Congress on this legislation.  In the near future, we look forward to the enhanced tax deduction that extends the entire fair market value of the product to all business taxpayers in the United States, and we thank our friends in Congress who have pledged their commitment to help us achieve this.”

America's Second Harvest–The Nation's Food Bank Network is the largest charitable domestic  hunger-relief organization in the country with a Network of more than 200 Member food banks and food-rescue organizations serving all 50 states, the District of Columbia and Puerto Rico. 

The America's Second Harvest Network secures and distributes more than 2 billion pounds of donated food and grocery products annually; and supports approximately 50,000 local charitable agencies operating more than 94,000 programs including food pantries, soup kitchens, emergency shelters, after-school programs and Kids Cafes. Last year, the America's Second Harvest Network provided food assistance to more than 25 million low-income hungry people in the United States, including 9 million children and nearly 3 million seniors.  For more on the America's Second Harvest Network, please visit www.secondharvest.org.

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