BILL ANALYSIS



H.C.R. 173
By: Counts
May 10, 1995
Committee Report (Unamended)


BACKGROUND

In 1976, Congress added Section 170(e)(3), Internal Revenue Code,
which offered a tax incentive for donations by corporations to
charitable organizations serving the sick, needy, homeless, or
infants.  This incentive provides for a deduction equal to half the
difference between the donor's cost and the fair market value of
the donated product and can not exceed twice the cost.

In West Texas, where a high percentage of the states food and fiber
are produced, farmers have responded generously to this program. 
However, farmers whose businesses are not incorporated are not
eligible for the tax deduction.

PURPOSE

HCR 173 urges the United States Congress to make revisions to
Section 170(e)(3), Internal Revenue Code, to extend the charitable
donation exemption to non-corporate farmers and other entities. 

SUMMARY OF COMMITTEE ACTION

Public notice was posted in accordance with the rules, and a public
hearing was held on May 9, 1995.  Representative Counts explained
the resolution.  By a record vote of 7 ayes, 0 nays, 0 present not
voting and 4 absent, the committee voted to report H.C.R. 173 to
the House without amendment with the recommendation that it do
pass.