[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 824 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 824
To amend the Internal Revenue Code of 1986 to allow individuals who do
not itemize their deductions a deduction for a portion of their
charitable contributions, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 1, 2001
Ms. Dunn (for herself, Mr. Duncan, Mr. Simpson, Mr. Whitfield, Mr. Deal
of Georgia, Ms. Hart, Mr. Peterson of Pennsylvania, Mr. Crenshaw, Mr.
English, Mr. Pascrell, Mr. Watts of Oklahoma, Mr. Greenwood, Mr. Baird,
Mr. Otter, Mr. Taylor of North Carolina, Mr. Schaffer, and Mr. Souder)
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 individuals who do
not itemize their deductions a deduction for a portion of their
charitable contributions, and for other purposes.
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 ``Neighbor to Neighbor Act''.
SEC. 2. DEDUCTION FOR PORTION OF CHARITABLE CONTRIBUTIONS TO BE ALLOWED
TO INDIVIDUALS WHO DO NOT ITEMIZE DEDUCTIONS.
(a) In General.--Section 170 of the Internal Revenue Code of 1986
(relating to charitable, etc., contributions and gifts) is amended by
redesignating subsection (m) as subsection (n) and by inserting after
subsection (l) the following new subsection:
``(m) Deduction for Individuals Not Itemizing Deductions.--
``(1) In general.--In the case of an individual who does
not itemize the individual's deductions for the taxable year,
the amount allowable under subsection (a) shall be taken into
account as a direct charitable deduction under section 63.
``(2) Limitation.--The portion of the amount allowable
under subsection (a) to which paragraph (1) applies for the
taxable year shall not exceed the amount in effect for such
taxable year under section 63(c)(2)(C) (section 63(c)(2)(A) in
the case of a joint return under section 6013).''.
(b) Direct Charitable Deduction.--
(1) In general.--Section 63(b) of such Code (relating to
individuals who do not itemize their deductions) is amended by
striking ``and'' at the end of paragraph (1), by striking the
period at the end of paragraph (2) and inserting ``, and'', and
by adding at the end the following new paragraph:
``(3) the direct charitable deduction.''.
(2) Definition.--Section 63 of such Code (relating to
taxable income defined) is amended by redesignating subsection
(g) as subsection (h) and by inserting after subsection (f) the
following new subsection:
``(g) Direct Charitable Deduction.--For purposes of this section,
the term `direct charitable deduction' means that portion of the amount
allowable under section 170(a) which is taken as a direct charitable
deduction for the taxable year under section 170(m).''.
(3) Conforming amendment.--Section 63(d) of such Code
(defining itemized deductions) is amended by striking ``and''
at the end of paragraph (1), by striking the period at the end
of paragraph (2) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(3) the direct charitable deduction.''.
(c) Time When Contributions Deemed Made.--Section 170(f) of such
Code (relating to disallowance of deduction in certain cases and
special rules) is amended by adding at the end the following new
paragraph:
``(10) Time when contributions deemed paid.--For purposes
of this section, in the case of an individual, a taxpayer shall
be deemed to have paid a charitable contribution on the last
day of the preceding taxable year if the contribution is paid
on account of such taxable year and is paid not later than the
time prescribed by law for filing the return for such taxable
year (not including extensions thereof).''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2000.
SEC. 3. CHARITABLE DEDUCTION EXCEPTION TO OVERALL LIMITATION ON
ITEMIZED DEDUCTIONS.
(a) In General.--Subsection (c) of section 68 of the Internal
Revenue Code of 1986 (relating to exception for certain itemized
deductions) is amended by striking ``and'' at the end of paragraph (2),
by striking the period at the end of paragraph (3) and inserting ``,
and'', and by adding at the end the following:
``(4) the deduction under section 170 (relating to
charitable, etc., contributions and gifts).''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2000.
SEC. 4. REPEAL OF SPECIAL LIMITATION ON CONTRIBUTIONS OF CAPITAL GAIN
PROPERTY.
(a) In General.--Paragraph (1) of section 170(b) of the Internal
Revenue Code of 1986 (relating to percentage limitations on charitable
contributions by individuals) is amended--
(1) by striking subparagraphs (C) and (D), and
(2) by redesignating subparagraphs (E) and (F) as
subparagraphs (C) and (D), respectively.
(b) Conforming Amendments.--
(1) Subparagraph (B) of section 170(e)(5) of such Code is
amended--
(A) in clause (ii) by striking ``(as defined in
subsection (b)(1)(C)(iv))'', and
(B) by adding at the end the following new flush
sentence:
``For purposes of clause (ii), the term `capital gain
property' means with respect to any contribution, any
capital asset the sale of which at its fair market
value at the time of the contribution would have
resulted in gain which would have been long-term
capital gain. For purposes of the preceding sentence,
any property which is property used in the trade or
business (as defined in section 1231(b)) shall be
treated as a capital asset.''.
(2) Section 545(b)(2) of such Code is amended by striking
``section 170(b)(1)(A), (B), and (D)'' and inserting ``section
170(b)(1)(A) and (B)''.
(3) Section 556(b)(2) of such Code is amended by striking
``section 170(b)(1)(A), (B), and (D)'' and inserting ``section
170(b)(1)(A) and (B)''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2000.
SEC. 5. EXTENSION OF CARRYOVER PERIOD FOR EXCESS CONTRIBUTIONS.
(a) In General.--The following provisions of section 170 of the
Internal Revenue Code of 1986 are each amended by striking ``5'' and
inserting ``10'':
(1) Subsection (d)(1)(A) (general rule for carryovers of
excess contributions by individuals).
(2) Subsection (d)(2)(A) (general rule for carryovers of
excess contributions by corporations).
(3) Subsection (b)(1)(B) (relating to percent limitation on
other contributions by individuals).
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2000.
SEC. 6. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT ACCOUNTS FOR
CHARITABLE PURPOSES.
(a) In General.--Subsection (d) of section 408 of the Internal
Revenue Code of 1986 (relating to individual retirement accounts) is
amended by adding at the end the following new paragraph:
``(8) Distributions for charitable purposes.--
``(A) In general.--No amount shall be includible in
gross income by reason of a qualified charitable
distribution from an individual retirement account to
an organization described in section 170(c).
``(B) Special rules relating to charitable
remainder trusts, pooled income funds, and charitable
gift annuities.--
``(i) In general.--No amount shall be
includible in gross income by reason of a
qualified charitable distribution from an
individual retirement account--
``(I) to a charitable remainder
annuity trust or a charitable remainder
unitrust (as such terms are defined in
section 664(d)),
``(II) to a pooled income fund (as
defined in section 642(c)(5)), or
``(III) for the issuance of a
charitable gift annuity (as defined in
section 501(m)(5)).
The preceding sentence shall apply only if no
person holds an income interest in the amounts
in the trust, fund, or annuity attributable to
such distribution other than one or more of the
following: the individual for whose benefit
such account is maintained, the spouse of such
individual, or any organization described in
section 170(c).
``(ii) Determination of inclusion of
amounts distributed.--In determining the amount
includible in the gross income of any person by
reason of a payment or distribution from a
trust referred to in clause (i)(I) or a
charitable gift annuity (as so defined), the
portion of any qualified charitable
distribution to such trust or for such annuity
which would (but for this subparagraph) have
been includible in gross income--
``(I) shall be treated as income
described in section 664(b)(1), and
``(II) shall not be treated as an
investment in the contract.
``(iii) No inclusion for distribution to
pooled income fund.--No amount shall be
includible in the gross income of a pooled
income fund (as so defined) by reason of a
qualified charitable distribution to such fund.
``(C) Qualified charitable distribution.--For
purposes of this paragraph, the term `qualified
charitable distribution' means any distribution from an
individual retirement account--
``(i) which is made on or after the date
that the individual for whose benefit the
account is maintained has attained age 59\1/2\,
and
``(ii) which is made directly from the
account to--
``(I) an organization described in
section 170(c), or
``(II) a trust, fund, or annuity
referred to in subparagraph (B).
``(D) Denial of deduction.--The amount allowable as
a deduction under section 170 to the taxpayer for the
taxable year shall be reduced (but not below zero) by
the sum of the amounts of the qualified charitable
distributions during such year which would be
includible in the gross income of the taxpayer for such
year but for this paragraph.''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to taxable years beginning after December 31, 2000.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line