Feed the Community Act

Bill Number

H.R. 5840

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-10-28: Referred to the House Committee on Ways and Means.

Last Updated

2026-04-17T08:07:03Z

AI-Generated Summary

Purpose

The "Feed the Community Act" (H.R. 5840) aims to encourage donations of equipment used in food distribution by granting them favorable tax treatment similar to donations of food inventory. Specifically, it targets support for nonprofit organizations that provide food to individuals and communities facing hunger or need.

Key Provisions

• Expanded Definition of Qualified Donations: Amends Section 170(e)(3) of the Internal Revenue Code (IRC) to include "qualified property" alongside food inventory. Qualified property encompasses:
• Fully functional food storage equipment, such as industrial refrigerators, freezers, commercial shelving, or materials for storing perishable foods.
• Food transportation vehicles, like delivery trucks, vans, trailers, or shipping containers used primarily for transporting food or meals.
• Meal transport equipment, including insulated bags, warming boxes, or thermal carriers to maintain food temperature during delivery.
• Meal preparation and packing equipment, such as industrial stoves, ovens, mixers, or machinery for sealing and packing meals.
• Eligibility Requirements: Donations must go to nonprofits whose primary mission is to serve, deliver, or provide food commodities, items, or prepared meals to people in need.
• Tax Treatment Options: Donors can elect to limit the reduction in their charitable deduction (under IRC rules that typically reduce the deduction for certain property) to no more than 25% of the property's fair market value (FMV), making the deduction more generous.
• Dollar Limitations: For the taxable year, the deduction amount is capped at $500 for meal transport equipment and $15,000 for meal preparation and packing equipment.
• Effective Date: Applies to taxable years beginning after December 31, 2025.

Significant Changes to Existing Law

• Under current IRC Section 170(e)(3), donors of food inventory to qualified nonprofits receive an enhanced deduction based on the lesser of the donor's cost basis or twice that basis (up to certain limits), with a reduced reduction in value for wear and tear.
• This bill extends that enhanced treatment to qualified property (equipment), which previously did not qualify for the same benefits. It introduces new subclauses and definitions to integrate this without altering the core rules for food inventory, while adding exceptions and caps to prevent abuse.

Potential Impacts

• On Citizens: May increase access to food for low-income or needy communities by facilitating more equipment donations, improving nonprofits' ability to store, transport, and prepare meals efficiently.
• On Government Agencies: The Internal Revenue Service (IRS) will need to administer new deduction rules, potentially increasing verification of donations and eligibility, though the dollar caps may limit complexity.
• On Nonprofits and Donors: Businesses or individuals with surplus equipment (e.g., restaurants, food producers) could benefit from higher tax deductions, incentivizing donations over disposal or sale.
• International Relations: No direct impact, as the bill focuses on domestic tax incentives for U.S. nonprofits serving local communities.

Main Stakeholders Affected

• Donors: Taxpayers, particularly businesses in the food industry (e.g., manufacturers, transporters, or restaurants), who own qualifying equipment and seek tax benefits for charitable giving.
• Nonprofit Organizations: Food banks, meal delivery programs, and hunger relief groups that rely on equipment to distribute food, gaining better resources without purchase costs.
• Communities in Need: Low-income individuals, families, or areas with food insecurity, who may receive more reliable food assistance.
• Internal Revenue Service (IRS): Responsible for enforcing the new rules, including audits of deductions and verification of nonprofit missions.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens tax incentives for philanthropy under the IRC, aligning with existing provisions for food donations (e.g., from the 1997 Taxpayer Relief Act expansions). The bill's caps and election options help ensure fairness and prevent excessive deductions, reducing litigation risks over valuation.
• Constitutional: No apparent issues; it involves Congress's authority to regulate taxation and charitable deductions under Article I, without infringing on free speech, due process, or other rights.
• Political: Promotes food security as a bipartisan priority (introduced by a diverse group of representatives), potentially influencing future tax reform debates on incentives for social welfare. It could set a precedent for extending tax benefits to other nonprofit support tools beyond direct inventory.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Barragán, Nanette Diaz [D-CA-44]

Cosponsors (26)

Rep. Ansari, Yassamin [D-AZ-3], Rep. Brownley, Julia [D-CA-26], Rep. Carbajal, Salud O. [D-CA-24], Rep. Carson, André [D-IN-7], Rep. Chu, Judy [D-CA-28], Rep. Crockett, Jasmine [D-TX-30], Rep. Fields, Cleo [D-LA-6], Rep. Figures, Shomari [D-AL-2], Rep. Garcia, Robert [D-CA-42], Rep. Horsford, Steven [D-NV-4], Rep. Jacobs, Sara [D-CA-51], Rep. Kennedy, Timothy M. [D-NY-26], Rep. Lee, Summer L. [D-PA-12], Rep. Lieu, Ted [D-CA-36], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Rivas, Luz M. [D-CA-29], Rep. Thanedar, Shri [D-MI-13], Rep. Vargas, Juan [D-CA-52], Rep. Titus, Dina [D-NV-1], Rep. Wilson, Frederica S. [D-FL-24], Rep. Schrier, Kim [D-WA-8], Rep. Kamlager-Dove, Sydney [D-CA-37], Rep. Cisneros, Gilbert Ray [D-CA-31], Rep. Keating, William R. [D-MA-9], Rep. Costa, Jim [D-CA-21], Rep. Jackson, Jonathan L. [D-IL-1]

Recent Actions

• 2025-10-28: Referred to the House Committee on Ways and Means.
• 2025-10-28: Introduced in House
• 2025-10-28: Introduced in House

Bill Versions

• Feed the Community Act — issued 2025-10-28 — PDF (7 pages)