The National Grocers Association said Thursday it commends the House of Representatives for passing the Fighting Hunger Incentive Act of 2014, which makes charitable enhanced deductions for food donations permanent.
Making the law permanent “provides predictability for independent grocers of all sizes and allows our members to give back to their community in a beneficial way [while reducing their taxable income],” Greg Ferrara, VP of public affairs, said.
“While NGA fully supports legislative efforts to enact fair and balanced comprehensive tax reform, many tax-extender provisions important to our industry have currently expired. We are pleased to see this bill pass with bipartisan support.”
The bill passed by a vote of 277 to 130.
“NGA looks forward to working with the Senate to pass other pro-growth tax extenders, which provide independent grocers with the necessary stability to run their businesses and create jobs,” Ferrara said.
In a letter to the House leadership a day before the vote, Peter J. Larkin, president and CEO of NGA, urged extension of the legislation, saying enhanced tax deductions for food inventory “provide an important incentive for grocers to donate food inventory to community food banks and other charitable organizations that fight hunger.
“Since HR 4719 increases the maximum percentage a business can deduct from 10% to 15%, NGA members can make a greater impact in their communities by increasing the amount of food they donate to those in need.
“Further, HR 4719 levels the playing field for the independent grocery industry by allowing pass-through businesses to qualify for the enhanced deduction — provisions … likely to increase charitable giving among independent supermarkets of all sizes and corporate structures.
“While NGA fully supports efforts to enact fair and balanced comprehensive tax reform, our industry recognizes that achieving that goal will require extensive debate and consideration. NGA members are united in our call for the extension of pro-growth tax extenders so grocers can be provided with tax certainty and predictability until comprehensive tax reform can be completed.”
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