Congressman Jason Smith visited the SEMO Food Bank in Sikeston to highlight his support for the America Gives More Act. Pictured from left to right are SEMO Food Bank employee Missy Rice, Smith, and SEMO Food Bank CEO Karen Green.
On Friday, July 18, 2014, Congressman Jason Smith visited the Southeast Missouri Food Bank in Sikeston to highlight his support of H.R. 4719, the America Gives More Act. The legislation will make permanent a provision to allow pass-through businesses, such as partnerships and S corporations, to claim an enhanced deduction for donations of food inventory. The provision expired at the end of 2013. Smith voted in favor of H.R. 4719 and the bill passed the House of Representatives on a vote of 277-130.
“The SEMO Food Bank and other food banks across our congressional district provide a real service. The America Gives More Act will be a big boost to area food banks by allowing private businesses to make tax-deductible donations to help their local communities,” said Smith. “The entire team at the SEMO Food Bank is truly committed to serving those in need. I appreciate their hospitality today and I look forward to continue working with them.”
Karen Green, Chief Executive Officer, Southeast Missouri Food Bank, welcomed Smith’s visit.
“It was such a pleasure to host Congressman Jason Smith at the Southeast Missouri Food Bank this morning. We had the opportunity to not only show him our facility but also highlight our many programs and showcase the impact they have on hunger across our region. We are grateful for his support of the America Gives More Act and we look forward to future collaboration with Congressman Smith,” said Green.
H.R. 4719, the America Gives More Act Background:
- H.R. 4719 will revive, modify and make permanent a provision that allowed pass-through businesses, such as partnerships and S corporations, to claim an enhanced deduction for donations of food inventory, limited to 10 percent of income. The provision expired at the end of 2013. C corporations receive similar treatment on a permanent basis.
- Pass-through businesses aren’t taxed at the business level; instead, income and losses are “passed through” to investors, who pay taxes at the individual level.
- The bill would increase the enhanced deduction so that it is limited to 15 percent of a taxpayer’s income, for both C corporations and pass-through businesses, instead of 10 percent.
- For purposes of computing the deduction, the bill also would allow taxpayers to treat the cost basis of the food donated as equal to 25 percent of the fair market value of the food.
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