S. 4780: To amend the Internal Revenue Code of 1986 to exclude micro-grants for food security from gross income.

This bill would change federal tax law so that certain micro-grants for food security would not count as taxable income for the organizations that receive them.

What it does

• Creates a new tax rule in the Internal Revenue Code for micro-grants for food security.
• Provides that, for an eligible entity under the federal agriculture law referenced in the bill, gross income would not include any subgrant or other financial assistance received under that food security program.
• In plain terms, if a qualifying organization receives one of these grants or subgrants, it would not have to report that money as taxable income under federal income tax rules.

Who could be affected

• The bill is aimed at organizations eligible under the food security grant program referenced in the Agriculture Improvement Act of 2018.
• This would likely include nonprofit groups, community organizations, and similar entities involved in food security efforts, if they are eligible under that program.

When it would take effect

• The change would apply to money received in taxable years beginning after the date the bill becomes law.

Relevant Companies

None found