Grassley, a senior member of the tax-writing Senate Finance Committee, says making three changes to the federal tax code could greatly enhance the ability of local food pantries, homeless shelters and non-profit organizations to stock their shelves and help feed hungry area families.
"It's a shame that about 96 billion pounds of food goes to waste each year in the land of plenty," said Grassley. "Action at the federal level can help retrieve some of these lost left-overs from the garbage bin."
Specifically, S. 2084 would allow farmers, restaurant owners and small businesses to take advantage of the tax deduction for food donations now available only to corporations. Second, it would increase the tax deduction for donated food to include expenses incurred by the business owner or farmer. Third, the bill would allow those donating the food and grocery products to deduct the fair market price, not to exceed twice the cost of production.
Since 1976, corporations have been eligible to receive a "special rule tax deduction" for in-kind donations, which allows a company to deduct the cost of the donated product and up to one-half the mark-up of the product's fair market value.
"Policy makers need to encourage new and existing food donors to contribute to the campaign against hunger," said Grassley. "This bill for the first time would make it easier for Iowa farmers to donate farm-fresh products to their local food pantry."
The executive director of the Food Bank of Iowa, Karen Ford, will lead Grassley on the tour of the facilities and join him at the press conference. The Food Bank of Iowa serves more than 260 non-profit agencies in 42 Iowa counties.