U.S. Sen. Dick Lugar today reintroduced the Good Samaritan Hunger Relief Tax Incentive Extension Act to make permanent provisions that allow farmers and small business owners to receive a tax deduction for donating food products to food banks, pantries and homeless shelters.

Provisions of this bill were temporarily extended in the Emergency Economic Stabilization Act of 2008, but expire at the end of this year. Senators Patrick Leahy (D-VT), Blanche Lincoln (D-AR), Dick Durbin (D-IL), Bernie Sanders (I-VT), and Pat Roberts (R-KS) are cosponsors of this legislation.

"Demand on food banks has been rising, and these tax deductions would be an important step in increasing private donations to the non-profit hunger relief charities playing a critical role in meeting America's nutrition needs," Lugar said.

Current law permits businesses a deduction from their taxes for a donation equal to either 1) twice cost basis; or 2) the difference of cost basis plus one half the difference between cost basis and fair market value. Food donations from all sizes of businesses can qualify for this type of donation. Lugar's bill introduced today increases the valuation to full market value of the donation and makes this provision a permanent part of the Internal Revenue Code.

According to the Economic Research Service at the United States Department of Agriculture, approximately 36.2 million people lived in food insecure households in 2007, including nearly 12.4 million children. Furthermore, statistics show that up to 96 billion pounds of food go to waste each year in the United States.

"If a small percentage of this wasted food could be redirected to food banks, we could make important strides in our fight against hunger," Lugar said.

Lugar has introduced the Good Samaritan Hunger Relief Tax Incentive Act since the 106th Congress, with short-term, sun-setting provisions having passed.

With unemployment rates rising and the price of gas and heating oil fluctuating, the increased demand placed on food banks and soup kitchens underscores the need for this provision to be permanent in the tax code. A Feeding America report from December 2008 found that demand for emergency food assistance at food banks has increased more than 30 percent nationwide.

Lugar has long supported Indiana food banks and hosts food drives across the state throughout the year.

Lugar is co-chair of the Senate Hunger Caucus, which provides a forum for Senators and staff to discuss and hunger issues facing the United States and around the world.

For more information on Lugar's food security efforts, visit http://lugar.senate.gov/food.