Fighting Hunger Incentive Act of 2014

Floor Speech

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Mr. CAMP. Mr. Speaker, I yield myself such time as I may consume.

The American people are the most charitable people in the world, donating money, food, and clothing in times of need. Their donations ensure that charities and foundations can help individuals and communities across the country.

There are numerous provisions in the Tax Code that encourage giving, and the bill we have before us today, H.R. 4719, the America Gives More Act, ensures that some of these provisions are made permanent so individuals, businesses, and farmers can donate and give back more. The first provision will make permanent and expand the charitable deduction for contributions of food inventory by businesses, regardless of how they are organized.

Food banks are a vital part of communities, helping Americans put food on the table and provide for their families when they have come across hard times or suffered through a natural disaster.

The Food Donation Connection has estimated that since this tax deduction was expanded in 2006, donations have increased 127 percent. Unfortunately, a provision in current law that encouraged passthrough businesses to contribute food inventory expired at the end of last year, and charities and foundations across the country are urging that it be restored and made permanent.

According to Feeding America, 3.6 billion pounds of food is distributed by food bank members each year. This legislation would significantly increase food bank access to the 70 billion pounds of nutritious food wasted each year.

Today, we have the opportunity to continue this important credit, allowing all businesses, farmers, and ranchers to take advantage and donate more nutritious food to the millions of Americans who need it most.

This bill also ensures that seniors who donate to charities from their Individual Retirement Accounts can do so without a tax penalty. According to the Independent Sector, this provision has ``prompted more than $140 million in gifts to the work of nonprofits since enactment, assisting social service providers, religious organizations, cultural institutions and schools, and other nonprofits.'' Making this provision permanent can only serve to increase the generous donations that charities rely on.

In addition, the bill will make permanent the deduction for contributions of conservation easements. This provision will also increase the amount of land or property donated for charitable use. Witnesses before the Ways and Means Committee have testified that in the first 2 years of the enactment of conservation easements, the number of donations doubled compared to the previous 2 years, resulting in a 32 percent increase of acreage conserved.

This is one area, especially, where long-term planning is essential. To allow this to expire makes it much more difficult for the often multigenerational planning necessary to take place. In Michigan, I have seen the benefits of conservation easements firsthand. This is a tremendous legacy for future generations.

The tax reform draft the committee produced earlier in the year would encourage charitable giving in several important ways and, by creating a stronger economy, analysis found that it would increase charitable giving by an estimated $2.2 billion each year.

Two important charitable provisions from the draft--lowering the excise tax on private foundations and extending the tax deadline for charitable contributions from December 31 to April 15--are included in the America Gives More Act.

At the end of the year, many taxpayers have no idea what their tax liability will be, and it is only after struggling through the daunting process of preparing their tax return that they know with certainty. If taxpayers were permitted to make and deduct contributions prior to filing their tax return, I believe many Americans will be even more generous in supporting religious and charitable causes. Testimony before the Ways and Means Committee found that allowing donors to deduct gifts until April 15 would result in significantly more charitable giving.

Another provision from the draft would lower and simplify the excise tax on private foundations, making compliance easy, especially for smaller foundations. As a result, foundations will have more of their resources available to support charities and exempt organizations across the country.

All of these provisions are bipartisan and have the support of over 850 charities and foundations across the country, who wrote to Congress stating:

Without an incentive in place and assured, many of the gifts the charitable incentives were intended to promote will simply not take place.

I will insert in the Record the letter from Independent Sector, supported by 850 charities and foundations across the United States.

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Mr. CAMP. Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, the provisions we are talking about today, the policies, whether it is donations to food inventory or IRA contributions, excess dollars from an IRA, or whether it is a conservation easement, these are all items that have been extended unpaid for, if you will, time and time again.

We have heard a lot about the cost from the other side. But if charities, religious groups, foundations, food banks, if we can make these permanent--because, right now, these three are expired. They can't be used. But if we can make these permanent, we will see an increase in charitable giving--850 organizations have written us and said that would happen, all of them who serve the poor, who serve the needy, who serve Americans in trouble.

Also, it doesn't go through the government. What these charities do, what these religious groups do, and what these foundations do is beyond the power of government to give. Let's make these permanent. Let's extends these provisions. Let's increase charitable giving in the United States, and let's help people help themselves.

I urge a ``yes'' vote on the legislation, and I yield back the balance of my time.

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Mr. CAMP. Mr. Speaker, this motion would create chaos for the charitable community. Americans are more generous than any other nation in the world. What we need is certainty in our Tax Code--certainty for those who want to donate food to food banks, certainty for those who want to make excess contributions to IRAs, and certainty for those who want to preserve fragile land for future generations.

This motion makes it much harder to help those in need, and God knows, we have a lot of Americans in need with a contracting economy and the worst recovery since the Great Depression.

We are the only nation in the world with temporary tax policies. Some of these provisions have expired and have been renewed time and time again, and we need to admit it and make them permanent.

Let me just say, when it comes to inversions, the administration agrees with me that the best way to address this issue is through lower rates and through comprehensive tax reform, and we should be doing that, but this motion actually creates a perverse incentive for American companies to pack up and move overseas. That is the worst thing we can do for American workers.

I urge a ``no'' vote on this motion to recommit and a ``yes'' vote on the underlying legislation.

I yield back the balance of my time.

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