HR5840-119

2. Charitable donations of qualified property Section 170(e)(3) of the Internal Revenue Code of 1986 is amended— in subparagraph (B)— by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, by striking The reduction and inserting: Except as provided in clause (ii), the reduction by adding at the end the following new clause: In the case of qualified property described in subparagraph (C)(vii), at the election of the taxpayer, the reduction under paragraph (1)(A) with respect to such qualified property shall be no greater than 25 percent of the fair market value of such qualified property. The amount taken into account under paragraph (1)(A) with respect to meal transport equipment and meal preparation and packing equipment of the taxpayer for the taxable year shall not exceed— in the case of meal transport equipment, $500, and in the case of meal preparation and packing equipment, $15,000. in subparagraph (C)— in the heading, by inserting and qualified property after food inventory, in clause (i)— by inserting or qualified property after charitable contribution of food, and in subclause (II), by inserting qualified property and, in the case of food, to after only to, and by adding at the end the following new clause: For purposes of this subparagraph— The term qualified property means fully functional food storage equipment, food transportation vehicles, meal transport equipment, and meal preparation and packing equipment which are donated to an organization the primary mission of which is to serve, deliver, or otherwise provide food commodities, food items, or prepared and cooked meals to individuals and communities in need. The term food storage equipment means— an industrial or commercial grade refrigerator or freezer, industrial racking, palette racks, or other commercial shelving used by the donee for dry or temperature-controlled food storage, or inventory property or materials that aid in the receipt or storage of perishable foods, including freezer doors, insulated panels and other similar materials and equipment. The term food transportation vehicle means a delivery truck, delivery van, trailer, or shipping container that is primarily used by the donee for the storage and transportation of food commodities or meals to individuals and communities in need. The term meal transport equipment means— insulated bags, warming boxes, and other thermal carriers used to deliver prepared meals and keep them at a designated temperature during transport. The term meal preparation and packing equipment means— industrial stoves, ovens, convention ovens, broilers, and industrial or large-scale mixers and related equipment, machinery, fully assembled or in parts, used to seal, pack or otherwise contain meals or food items ready for consumption, equipment or machinery used for packing trays with food items, or used to dispense sealing film or covers for meal trays. in subparagraph (D), by striking This paragraph and inserting Except in the case of qualified property described in subparagraph (C)(vii), this paragraph. The amendments made by this section shall apply to taxable years beginning after December 31, 2025. (i)In generalExcept as provided in clause (ii), the reduction, and (ii)Maximum reduction for qualified property, dollar limitations(I)Maximum reductionIn the case of qualified property described in subparagraph (C)(vii), at the election of the taxpayer, the reduction under paragraph (1)(A) with respect to such qualified property shall be no greater than 25 percent of the fair market value of such qualified property.(II)Dollar limitationsThe amount taken into account under paragraph (1)(A) with respect to meal transport equipment and meal preparation and packing equipment of the taxpayer for the taxable year shall not exceed—(aa)in the case of meal transport equipment, $500, and(bb)in the case of meal preparation and packing equipment, $15,000. , (vii)Qualified propertyFor purposes of this subparagraph—(I)In generalThe term qualified property means fully functional food storage equipment, food transportation vehicles, meal transport equipment, and meal preparation and packing equipment which are donated to an organization the primary mission of which is to serve, deliver, or otherwise provide food commodities, food items, or prepared and cooked meals to individuals and communities in need.(II)Food storage equipmentThe term food storage equipment means—(aa)an industrial or commercial grade refrigerator or freezer,(bb)industrial racking, palette racks, or other commercial shelving used by the donee for dry or temperature-controlled food storage, or(cc)inventory property or materials that aid in the receipt or storage of perishable foods, including freezer doors, insulated panels and other similar materials and equipment.(III)Food transportation vehicleThe term food transportation vehicle means a delivery truck, delivery van, trailer, or shipping container that is primarily used by the donee for the storage and transportation of food commodities or meals to individuals and communities in need.(IV)Meal transport equipmentThe term meal transport equipment means—(aa)insulated bags,(bb)warming boxes, and(cc)other thermal carriers used to deliver prepared meals and keep them at a designated temperature during transport.(V)Meal preparation and packing equipmentThe term meal preparation and packing equipment means—(aa)industrial stoves, ovens, convention ovens, broilers, and industrial or large-scale mixers and related equipment,(bb)machinery, fully assembled or in parts, used to seal, pack or otherwise contain meals or food items ready for consumption,(cc)equipment or machinery used for packing trays with food items, or used to dispense sealing film or covers for meal trays., and