H.R. 5840 — Feed the Community Act

This section expands the enhanced charitable deduction under IRC §170(e)(3)—which permits deductions for donations of food inventory and certain other property to organizations serving individuals in need at fair market value reduced by 50% of the lesser of basis or appreciation (capped at twice basis)—to include qualified property (i.e., fully functional food storage equipment such as commercial refrigerators and shelving, food transportation vehicles such as delivery trucks, meal transport equipment such as insulated bags, and meal preparation and packing equipment such as industrial ovens and sealers donated to food assistance organizations). For qualified property, it allows taxpayers to elect a maximum deduction reduction of 25% of fair market value and limits the reduction amount to $500 for meal transport equipment and $15,000 for meal preparation and packing equipment. The changes apply to taxable years beginning after December 31, 2025.