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Charitable Giving Tax Relief Act (Introduced in the Senate)


S 2077 IS
106th CONGRESS
2d Session
S. 2077
To amend the Internal Revenue Code of 1986 to allow nonitemizers a deduction for a portion of their charitable contributions.
IN THE SENATE OF THE UNITED STATES
February 22, 2000
Mr. SANTORUM (for himself and Mr. COVERDELL) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL
To amend the Internal Revenue Code of 1986 to allow nonitemizers a deduction for a portion of their charitable 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 `Charitable Giving Tax Relief 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- In the case of an individual who does not itemize his deductions for the taxable year, there shall be taken into account as a direct charitable deduction under section 63 an amount equal to 50 percent of the excess of the amount allowable under subsection (a) for the taxable year over $500.'
(b) DIRECT CHARITABLE DEDUCTION-
(1) IN GENERAL- Subsection (b) of section 63 of such Code 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 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- Subsection (d) of section 63 of such Code 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) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.