C corporations may continue to claim "enhanced" inventory donation deductions

Retail & Consumer Products Quickbrief

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 extended the Section 170(e)(3)(C) enhanced deduction associated with "qualified contributions" of food inventory made by taxpayers that are not C corporations through December 31, 2011. While that provision expired on January 1, 2012, making enhanced deductions associated with qualified contributions of food inventory unavailable to taxpayers that are not C corporations, C corporations may continue to claim enhanced deductions under Section 170(e)(3)(A), assuming all of the applicable requirements are met. Accordingly, retailers that are C corporations should determine if they meet the requirements of Section 170(e)(3)(A) for contributions of inventory made during calendar year 2012.

Return to Tax research and insights
Retail & Consumer Products Quickbrief archive