A bill to amend the Internal Revenue Code of 1986 to exclude micro-grants for food security from gross income.
- Bill Number
- S. 4780
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-06-15: Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-07-07T16:56:19Z
AI-Generated Summary
Summary of S. 4780
Purpose
This bill amends the Internal Revenue Code to exclude certain micro-grants for food security from being counted as taxable income, allowing eligible recipients to keep the full amount without federal income tax obligations.
Key Provisions
- New Tax Exclusion: Adds Section 139M to the Internal Revenue Code, stating that gross income does not include any subgrant or financial assistance received by an eligible entity under Section 4206 of the Agriculture Improvement Act of 2018.
- Definition Reference: Eligible entities are those already defined in the 2018 law (typically organizations involved in local food security efforts).
- Clerical Update: Adds the new section to the table of sections in the tax code.
- Effective Date: Applies to amounts received in tax years starting after the bill becomes law.
Significant Changes to Existing Law
- Creates a new exclusion from gross income specifically for these food security micro-grants, which were previously treated as taxable income under general tax rules.
- Builds on existing tax exclusions (such as those in Part III of Subchapter B) without altering other provisions.
Potential Impacts
- Government Agencies: The Internal Revenue Service may need to issue guidance or update forms to implement the exclusion, but no new enforcement mechanisms are created.
- Citizens and Organizations: Recipients of these grants, such as local food programs or community groups, would retain more funds since the grants are no longer taxed.
- International Relations: No direct effects identified in the bill.
Main Stakeholders Affected
- Eligible entities receiving micro-grants under the Agriculture Improvement Act of 2018, including nonprofits and local programs focused on food access.
- Individuals or organizations that benefit from these grants, as the tax treatment changes.
- The Internal Revenue Service, which administers the updated tax rules.
Notable Legal, Constitutional, or Political Implications
- Legal: Expands tax code exclusions in a targeted way, consistent with Congress's authority over taxation, without raising constitutional issues.
- Political: Supports food security initiatives by increasing the net value of grants, potentially encouraging broader participation in related programs.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-06-15: Read twice and referred to the Committee on Finance.
- 2026-06-15: Introduced in Senate
Bill Versions
- To amend the Internal Revenue Code of 1986 to exclude micro-grants for food security from gross income. — issued 2026-06-15 — PDF (2 pages)