Fight Hunger Act
- Bill Number
- H.R. 5809
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-10-21: Referred to the House Committee on Ways and Means.
- Last Updated
- 2025-11-20T17:59:33Z
AI-Generated Summary
Purpose of the Legislation
The "Fight Hunger Act" (H.R. 5809) aims to encourage donations of cash and food to organizations that provide meals to ill, needy, or infant populations by offering a tax credit. This incentive is designed to increase support for hunger relief efforts through the U.S. tax system.
Key Provisions
- Tax Credit Availability: Taxpayers can elect a non-refundable tax credit equal to the value of qualified charitable donations made during the taxable year. The credit applies against federal income taxes.
- Qualified Donations:
- Cash contributions or donations of "apparently wholesome food" (safe, edible food suitable for consumption).
- Must go to tax-exempt organizations under section 501(c)(3) of the Internal Revenue Code (IRC), such as food banks, soup kitchens, or similar groups focused on feeding the needy (excluding most private foundations).
- Food donations must be used directly for the organization's hunger-relief mission.
- Includes reasonable transportation costs for delivering food, capped at the IRS standard mileage rate (a fixed rate per mile for vehicle use in charitable activities).
- Special Rules:
- No Double Benefit: Donations used for this credit cannot also be claimed as a tax deduction or another credit.
- Carryforward: Unused credit can be carried forward for up to 5 years, applied on a first-in, first-out basis.
- Substantiation: Donors must provide documentation similar to requirements for charitable deductions (e.g., receipts or appraisals for non-cash donations over certain values).
- Integration with Other Credits:
- Business-related donations (from trade or business activities) are treated as part of the general business credit under IRC section 38.
- Personal (non-business) portions remain a personal tax credit under subpart A.
- Effective Date: Applies to taxable years beginning after December 31, 2025.
Significant Changes to Existing Law
- Introduces a new IRC section 30E, creating a dedicated tax credit for hunger-relief donations, which did not previously exist in this form.
- Amends IRC section 38(b) to include business portions of this credit in the general business credit framework.
- Updates IRC section 23(c)(1) to coordinate this new credit with existing credits like the residential energy credit (section 25D), preventing overlaps.
- Adds a clerical entry for section 30E in the IRC's table of contents.
- Shifts some charitable giving incentives from deductions (which reduce taxable income) to direct credits (which reduce tax owed dollar-for-dollar), potentially making the benefit more valuable for lower-income donors.
Potential Impacts
- On Government Agencies: The Internal Revenue Service (IRS) will need to update forms, guidance, and auditing processes to administer the credit, including verifying qualified organizations and donation values, which could increase administrative workload.
- On Citizens: Encourages more cash and food donations, potentially increasing food availability for ill, needy, or infant populations served by charities. Individual and business donors may see tax savings, but only if they itemize or elect the credit, affecting tax planning.
- On International Relations: No direct impact, as the bill focuses on domestic tax incentives for U.S.-based charitable activities.
Main Stakeholders Affected
- Taxpayers (Individuals and Businesses): Primary beneficiaries as donors, gaining tax relief for contributions; businesses may integrate this into corporate philanthropy.
- Charitable Organizations: Food banks, soup kitchens, and similar 501(c)(3) nonprofits focused on hunger relief, which could receive more donations to expand services.
- Low-Income, Ill, Needy, or Infant Populations: Indirect beneficiaries through increased food access and reduced hunger.
- Internal Revenue Service (IRS): Responsible for implementation, enforcement, and processing claims.
Notable Legal, Constitutional, or Political Implications
- Legal: Aligns with existing IRC frameworks for charitable incentives but introduces specificity for hunger relief, requiring clear IRS rules on "apparently wholesome food" to avoid disputes. Substantiation rules help prevent fraud but may burden small donors.
- Constitutional: No apparent challenges; it promotes First Amendment-protected charitable activities and equal protection by applying uniformly to eligible taxpayers.
- Political: Represents a bipartisan-friendly approach to social welfare via tax policy, potentially boosting philanthropy without direct government spending. Could face debate over the credit's cost to federal revenue (estimated forgone taxes) versus benefits in addressing food insecurity.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2025-10-21: Referred to the House Committee on Ways and Means.
- 2025-10-21: Introduced in House
- 2025-10-21: Introduced in House
Bill Versions
- Fight Hunger Act — issued 2025-10-21 — PDF (6 pages)