A bill to amend the Internal Revenue Code of 1986 to exclude micro-grants for food security from gross income.
Impact
The implementation of this bill will facilitate greater financial support for entities focused on food security, as they will not be penalized through taxation on financial contributions they receive. By exempting these micro-grants from gross income, the bill encourages more donations and support for local food programs, potentially leading to increased resources being allocated to help those in need. The effective date of this exemption will apply to taxable years beginning after the enactment of the legislation, signaling immediate action towards enhancing food security efforts.
Summary
SB2352 aims to amend the Internal Revenue Code of 1986 by excluding micro-grants for food security from being considered gross income. This legislation is designed to benefit eligible entities that provide food security services, allowing them to receive financial assistance without it impacting their taxable income. This change is particularly relevant as it aligns with ongoing efforts to address food insecurity in various communities across the nation, emphasizing the need to support organizations that contribute to food security initiatives.
Contention
While the bill is largely focused on promoting food security, it may face scrutiny regarding the criteria for what constitutes an 'eligible entity'. Questions may arise about the implementation of this bill and whether certain organizations might disproportionately benefit from these exemptions. Additionally, there could be concerns regarding budget implications for the federal tax revenue, as excluding these grants from gross income may have broader financial consequences that need to be evaluated. Overall, these discussions could shape the reception of SB2352 among lawmakers and stakeholders.
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