Citizen Involvement in Campaigns Act of 2005 - Amends the Internal Revenue Code to allow: (1) a $200 tax credit ($400 for joint returns) for contributions to a candidate for Federal elective public office or to the national committee of a national political party; and (2) a tax deduction (available to taxpayers who do not itemize deductions) for such political contributions up to $600 ($1,200 for joint returns).
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 958 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 958
To amend the Internal Revenue Code of 1986 to provide a credit and a
deduction for small political contributions.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 17, 2005
Mr. Petri (for himself, Mr. Kanjorski, and Mr. Rahall) 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 provide a credit and a
deduction for small political contributions.
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 ``Citizen Involvement in Campaigns Act
of 2005''.
SEC. 2. TAX CREDIT FOR CERTAIN POLITICAL CONTRIBUTIONS.
(a) In General.--Subpart A of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to nonrefundable
personal credits) is amended by inserting after section 25B the
following new section:
``SEC. 25C. CREDIT FOR CERTAIN POLITICAL CONTRIBUTIONS.
``(a) In General.--In the case of an individual, there shall be
allowed as a credit against the tax imposed by this chapter for the
taxable year an amount equal to all qualified political contributions
paid by the taxpayer during the taxable year.
``(b) Limitations.--
``(1) Maximum credit.--The credit allowed by subsection (a)
shall not exceed $200 ($400 in the case of a joint return).
``(2) Verification.--The credit allowed by subsection (a)
shall be allowed with respect to any qualified political
contribution only if such contribution is verified in such
manner as the Secretary shall prescribe by regulation.
``(c) Definitions.--For purposes of this section--
``(1) Qualified political contribution.--The term
`qualified political contribution' means a contribution or gift
of money, or the fair market value of a contribution or gift of
property, to--
``(A) an individual who is a candidate for
nomination or election to any Federal elective public
office in any primary, general, or special election,
for use by such individual to further the candidacy of
the individual for nomination or election to such
office, or
``(B) the national committee of a national
political party.
``(2) Candidate.--The term `candidate' means, with respect
to any Federal elective public office, an individual who--
``(A) publicly announces before the close of the
calendar year following the calendar year in which the
political contribution is made that the individual is a
candidate for nomination or election to such office;
and
``(B) meets the qualifications prescribed by law to
hold such office.
``(3) National political party.--The term `national
political party' means--
``(A) in the case of qualified political
contributions made during a taxable year of the
taxpayer in which the electors of President and Vice
President are chosen, a political party presenting
candidates or electors for such offices on the official
election ballot of ten or more States; or
``(B) in the case of qualified political
contributions made during any other taxable year of the
taxpayer, a political party which met the
qualifications described in subparagraph (A) in the
last preceding election of a President and Vice
President.
``(d) Election not to Have Section Apply.--A taxpayer may elect not
to have this section apply with respect to qualified political
contributions made during the taxable year.
``(e) Cross References.--
``For transfer of appreciated property to a political organization, see
section 84.
``For certain indirect contributions to political parties, see section
276.''.
(b) Conforming Amendment.--The table of sections for subpart A of
part IV of subchapter A of chapter 1 of such Code (relating to
nonrefundable personal credits) is amended by inserting after the item
relating to section 25B the following new item:
``Sec. 25C. Credit for certain political contributions.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31 of the calendar year
in which this Act is enacted.
SEC. 3. DEDUCTION FOR CERTAIN POLITICAL CONTRIBUTIONS.
(a) In General.--Part VII of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by redesignating section 224
as section 225 and by inserting after section 223 the following new
section:
``SEC. 224. POLITICAL CONTRIBUTIONS.
``(a) In General.--In the case of an individual, there shall be
allowed as a deduction for the taxable year an amount equal to the
qualified political contributions made by the taxpayer during the
taxable year.
``(b) Limitation.--The amount allowed as a deduction under
subsection (a) for the taxable year shall not exceed $600 ($1200 in the
case of a joint return).
``(c) Qualified Political Contribution.--For purposes of this
section, the term `qualified political contribution' shall have the
meaning given such term by section 25C(c)(1).
``(d) Denial of Double Benefit.--No deduction shall be allowed
under subsection (a) to a taxpayer for any qualified political
contribution made during the taxable year if a credit is allowed to
such taxpayer under section 25C for such year.''.
(b) Deduction Allowed Whether or not Taxpayer Itemizes Other
Deductions.--Subsection (a) of section 62 of such Code is amended by
inserting before the last sentence at the end the following new
paragraph:
``(21) Qualified political contributions.--The deduction
allowed by section 224.''.
(c) Clerical Amendment.--The table of sections for part VII of
subchapter B of chapter 1 of such Code is amended by redesignating the
item relating to section 224 as an item relating to section 225 and by
inserting before such item the following new item:
``Sec. 224. Political contributions.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31 of the calendar year
in which this Act is enacted.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Sponsor introductory remarks on measure. (CR E292)
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