Corporation Inventory Contribution Act of 2009 (H.R.4069)

Introduced by Congressman Phil Hare (D-IL) on November 16th, 2009, the S Corporation Inventory Contribution Act of 2009 would extend section 170 tax benefits to S corporations. The legislation:

  • Creates an incentive for S corporations to donate excess inventory or equipment to schools and charities;
  • Allows S corporations to deduct up to twice the basis of the item (not more than the retail value); and
  • Limits the amount of such deductions for corporations other than C corporations to 10% of aggregate net income.

Joining Congressman Hare in introducing the legislation was fellow Illinoisan, Rep. Danny Davis (D-IL). Corresponding legislation in the Senate (S.2841) was introduced by another member of the Illinois delegation, Senator Roland Burris (D-IL).

Click here to read the full text of the legislation

Click here to read the “Dear Colleague”

Click here to read S-CORP’s letter of support