SA 3834. Mrs. DOLE (for herself, Mr. GRASSLEY, and Mr. LUGAR) submitted an amendment intended to be proposed to amendment SA 3630 submitted by Mrs. DOLE and intended to be proposed to the bill H.R. 2419, to provide for the continuation of agricultural programs through fiscal year 2012, and for other purposes; which was ordered to lie on the table; as follows:

In lieu of the matter proposed to be inserted, insert the following:
SEC. __X. 2-YEAR EXTENSION AND EXPANSION OF CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD INVENTORY.
(a) In General.--Section 170(e)(3)(C) (relating to special rule for certain contributions of inventory and other property) is amended--
(1) by striking ``December 31, 2007'' in clause (iv) and inserting ``December 31, 2009'', and
(2) by redesignating clauses (iii) and (iv) as clauses (iv) and (v), respectively, and by inserting after clause (ii) the following new clause:
``(iii) DETERMINATION OF BASIS.--If a taxpayer--
``(I) does not account for inventories under section 471, and
``(II) is not required to capitalize indirect costs under section 263A,

the taxpayer may elect, solely for purposes of subparagraph (B), to treat the basis of any apparently wholesome food as being equal to 25 percent of the fair market value of such food.''.
(b) Effective Date.--The amendments made by this section shall apply to contributions made after December 31, 2007.
SEC. __X. MILEAGE REIMBURSEMENTS TO CHARITABLE VOLUNTEERS EXCLUDED FROM GROSS INCOME.
(a) In General.--Part III of subchapter B of chapter 1 is amended by inserting after section 139A the following new section:
``SEC. 139B. MILEAGE REIMBURSEMENTS TO CHARITABLE VOLUNTEERS.
``(a) In General.--Gross income of an individual does not include amounts received, from an organization described in section 170(c), as reimbursement of operating expenses with respect to use of a passenger automobile for the benefit of such organization. The preceding sentence shall apply only to the extent that such reimbursement would be deductible under this chapter if section 274(d) were applied--
``(1) by using the standard business mileage rate in effect under section 162(a) at the time of such use, and
``(2) as if the individual were an employee of an organization not described in section 170(c).
``(b) Application to Volunteer Services Only.--Subsection (a) shall not apply with respect to any expenses relating to the performance of services for compensation.
``(c) No Double Benefit.--No deduction or credit shall be allowed under any other provision of this title with respect to the expenses excludable from gross income under subsection (a).''.
(b) Clerical Amendment.--The table of sections for part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 139A and inserting the following new item:

``Sec..139B..Reimbursement for use of passenger automobile for charity.''.
(c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
SEC. __X. BASIS ADJUSTMENT TO STOCK OF S CORPORATIONS MAKING CHARITABLE CONTRIBUTIONS OF PROPERTY.
(a) Technical Amendment Related to Section 1203 of the Pension Protection Act of 2006.--Subsection (d) of section 1366 is amended by adding at the end the following new paragraph:
``(4) APPLICATION OF LIMITATION ON CHARITABLE CONTRIBUTIONS.--In the case of any charitable contribution of property to which the second sentence of section 1367(a)(2) applies, paragraph (1) shall not apply to the extent of the excess (if any) of--
``(A) the shareholder's pro rata share of such contribution, over
``(B) the shareholder's pro rata share of the adjusted basis of such property.''.
(b) Effective Date.--The amendment made by this section shall take effect as if included in the provision of the Pension Protection Act of 2006 to which it relates.


(As printed in the Congressional Record for the Senate on Dec 12, 2007.)