Homeless Family Relief Incentive Act of 1989

Homeless Family Relief Incentive Act of 1989 - Amends the Internal Revenue Code to permit an income tax deduction in connection with the charitable contribution of a leasehold interest in a dwelling that the recipient organization will use to house a homeless family for one year or less. Prescribes administrative details relating to the property and its valuation.

 
HR 1617 IH
101st CONGRESS
1st Session
 H. R. 1617
To amend the Internal Revenue Code of 1986 to allow taxpayers to deduct the
value of a lease contributed to a charitable organization where property leased
is to be used to provide temporary living quarters for a homeless family.
IN THE HOUSE OF REPRESENTATIVES
March 23, 1989
Mr. HOPKINS (for himself, Mr. RANGEL, Mr. FAUNTROY, Mr. COSTELLO, and
Mr. BUSTAMANTE) introduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to allow taxpayers to deduct the
value of a lease contributed to a charitable organization where property leased
is to be used to provide temporary living quarters for a homeless family.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `Homeless Family Relief Incentive Act of 1989'.
SEC. 2. DEDUCTION OF VALUE OF LEASE CONTRIBUTED TO CHARITABLE ORGANIZATION
WHERE PROPERTY LEASED IS TO BE USED TO PROVIDE TEMPORARY LIVING QUARTERS
FOR A HOMELESS FAMILY.
  (a) IN GENERAL- Subparagraph (B) of section 170(f)(3) of the Internal
  Revenue Code of 1986 (relating to exceptions from denial of deduction in
  case of certain contributions of partial interests in property) is amended--
  (1) by striking `and ' at the end of clause (ii),
  (2) by striking the period at the end of clause (iii) and inserting in
  lieu thereof `, and', and
  (3) by adding at the end the following new clause:
  `(iv) a contribution of a leasehold interest in a dwelling for any term,
  to be used by the donee to provide living quarters for a period not to
  exceed 1 year for a homeless family selected by the donee. For purposes of
  this clause, the term `homeless family' means a family which lacks, and has
  a demonstrated need for, a fixed, regular, and adequate nighttime residence.'
  (b) MANNER IN WHICH DEDUCTION MAY BE TAKEN- Subsection (a) of section 170
  of such Code (relating to allowance of deduction) is amended by adding at
  the end the following new paragraph:
  `(4) LEASEHOLD INTEREST DESCRIBED IN SUBSECTION (f)(3)(B)(iv)- In the case
  of a leasehold interest contribution described in subsection (f)(3)(B)(iv),
  there shall be allowed as a deduction for each taxable year of the donor
  during which the donee holds the interest--
  `(A) the value of the interest computed on a monthly basis, multiplied by
  `(B) the number of months in the taxable year during which the dwelling--
  `(i) meets all habitability standards prescribed by the State or political
  subdivision thereof in which the dwelling is located, and
  `(ii) is occupied for a substantial portion of the month by a homeless
  family selected by the donee.'
  (c) VALUATION OF CONTRIBUTED LEASE- Paragraph (3) of section 170(f) of such
  Code (relating to denial of deduction in case of certain contributions
  of partial interests in property) is amended by adding at the end the
  following new subparagraph:
  `(C) VALUATION OF LEASEHOLD INTEREST DESCRIBED IN SUBPARAGRAPH (B)(iv)-
  For purposes of this section, the value of a leasehold interest contribution
  described in subparagraph (B)(iv) shall be the lesser of--
  `(i) the established rental value of the subject property if the property
  has been leased during 1 or more of the 6 months immediately preceding
  the date of the contribution, or
  `(ii) the fair market rental value of other property of similar size and
  condition in the same general location as the subject property.'
  (d) EFFECTIVE DATE- The amendments made by subsections (a), (b), and (c)
  shall apply to interests in property contributed in taxable years beginning
  after December 31, 1988.