July 20, 2001

Food donation measure helps secure restaurant industry's role as cornerstone of the community

(Washington, DC)--In a major legislative victory for the National Restaurant Association, the House of Representatives last evening passed a bill that would make it easier for restaurants to donate surplus food to charities. The National Restaurant Association worked to have language included in the bill that would remove present barriers and help even more restaurants fight hunger in their communities.

"We applaud Congress for helping our industry continue to help others," said Steven C. Anderson, president and chief executive officer of the National Restaurant Association. "Restaurants are the cornerstone of the community, as nine out of 10 restaurateurs actively participate in a variety of community-service programs. Thanks to this bill, even more restaurants can give back and give even more to their neighbors."

Included in H.R. 7, the Community Solutions Act of 2001 is a provision that expands the food-donation tax deduction to restaurants structured as LLCs, S corporations or partnerships - the vast majority of restaurants. Currently, only restaurants set up as C corporations can deduct costs associated with preparing and donating food.

The measure is part of President Bush's "faith based" initiative and was sponsored by Reps. J.C. Watts (R-OK) and Tony Hall (D-OH).

Source: National Restaurant Association