,i  #aafth ,,congress  #b;d ,session    
,h4 ,r4 #hhag  ,,in ,,the ,,house ,,of  
,,representatives  ,november #bd1       
#bjbj,mr4 ,panetta 7for himself and ,mr4
 ,smith of ,nebraska7 introduced the    
following bill2 which was referred to   
the ,committee on ,ways and ,means  ,a  
,,bill  ,to provide incentives to make  
charitable contributions of certain     
inventory4  #a4 ,short title ,this ,act 
may be cited as the ,preserving         
,charitable ,incentives ,act4  #b4      
,incentives to make charitable          
contributions of certain inventory  7a7 
,temporary increase in limitation on    
qualified contributions  7#a7           
,suspension of current limitation       
,except as otherwise provided in        
paragraph 7#b71 qualified contributions 
shall be disregarded in applying        
subsections 7b77#b71 7d71 and           
7e77#c77;,c77ii7 of section #agj of the 
,internal ,revenue ,code of #aihf4  7#b7
 ,application of increased limitation   
,for purposes of section #agj of the    

,internal ,revenue ,code of #aihf-- 7,a7
 ,limitation ,any qualified contribution
 shall be allowed as a deduction only to
 the extent that the aggregate of such  
contributions does not exceed the excess
 of the taxpayer's taxable income 7as   
determined under paragraph 7#b7 of      
section #agj7;b7 of such ,code7 over the
 amount of all other charitable         
contributions allowed under such        
paragraph4  7,b7 ,carryover ,if the     
aggregate amount of qualified           
contributions made in the contribution  
year 7within the meaning of section     
#agj7;d77#b7 of such ,code7 exceeds the 
limitation of subparagraph 7,a71 such   
excess shall be appropriately taken into
 account under section #agj7;b77#b7 of  
such ,code subject to the limitations   
thereof4  7,c7 ,carryover of food       
inventory contributions ,if the         
aggregate amount of qualified           
contributions described in section      
#agj7;e77#c77;,c77i7 of such ,code made 
in such contribution year exceeds the   

limitation of subparagraph 7,a71 such   
excess shall be appropriately taken into
 account under section                  
#agj7;e77#c77;,c77iii7 of such ,code    
subject to the limitations thereof1 and 
the application of subparagraph 7,b7    
shall be adjusted accordingly4  7#c7    
,qualified contributions ,for purposes  
of this subsection1 the term qualified  
contribution means any qualified        
contribution 7as defined in section     
#agj7;e77#c77;,a7 of the ,internal      
,revenue ,code of #aihf7 which-- 7,a7 is
 made during a taxable year of the      
corporation which begins during #bjbj or
 #bjba1 and  7,b7 does not consist of   
any drug or biological product that     
requires a prescription of a physician  
for its use by an individual4  7#d7     
,election ,a contribution shall be taken
 into account as a qualified            
contribution for purposes of this       
subsection only if the corporation      
elects 7at such time and in such manner 
as the ,secretary may provide7 the      

application of this subsection with     
respect to such contribution4  7b7      
,election ,to treat qualified           
contributions as made in prior taxable  
year ,in the case of any qualified      
contribution 7as defined in subsection  
7a77#c7 and determined without regard to
 this subsection7 made during the       
corporation's first taxable year        
beginning in #bjbj with respect to which
 the corporation elects 7as such time   
and in such manner as the ,secretary may
 provide7 the application of this       
subsection-- 7#a7 such contribution     
shall be treated as made in the taxable 
year preceding such taxable year 7and   
not in such taxable year71 and  7#b7    
such contribution shall not be treated  
as a qualified contribution for purposes
 of subsection 7a74  7c7 ,clarification 
of treatment of inventory costs ,the    
,secretary of the ,treasury1 or the     
,secretary's designee1 shall clarify1   
though a notice or other administrative 
guidance1 the treatment of inventory    

costs as cost of goods sold for purposes
 of section #agj of the ,internal       
,revenue ,code of #aihf4