H.R. 4356 (103rd): Charitable Contributions Encouragement Act of 1994

103rd Congress, 1993–1994. Text as of May 05, 1994 (Introduced).

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HR 4356 IH

103d CONGRESS

2d Session

H. R. 4356

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

May 5, 1994

Mr. HUFFINGTON (for himself, Mr. GINGRICH, Mr. LEACH, Mr. WALKER, Mr. NEAL of North Carolina, Mr. HERGER, Mr. EVERETT, Mr. CRAPO, Mr. POMBO, Mr. HORN, Mr. INHOFE, Mr. BOEHNER, Mr. CUNNINGHAM, Mr. LINDER, Mr. GRAMS, Mr. WALSH, Mr. JACOBS, Mr. TALENT, Mr. BAKER of California, Mr. STEARNS, Mr. HOEKSTRA, Mr. CANADY, Mr. COX, Mr. DIAZ-BALART, Mr. MCKEON, Mr. DOOLEY, Mr. FRANKS of New Jersey, Mrs. VUCANOVICH, Mrs. FOWLER, Mr. GUNDERSON, Mr. HOKE, Mr. MCHALE, Mr. PORTMAN, Mr. SUNDQUIST, Mr. TORKILDSEN, Mr. DICKEY, and Mr. HUTCHINSON) 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 ‘Charitable Contributions Encouragement Act of 1994’.

SEC. 2. DEDUCTION FOR PORTION OF CHARITABLE CONTRIBUTIONS TO BE ALLOWED FOR 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, the amount allowable under subsection (a) for the taxable year shall be taken into account as a direct charitable deduction under section 63 to the extent such amount exceeds an amount equal to 5 percent of the basic standard deduction (as defined in section 63(c)) of the taxpayer for such taxable year.’

    (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 thereof 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 thereof 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 December 31, 1994.

SEC. 3. CHARITABLE CONTRIBUTION DEDUCTION NOT SUBJECT TO OVERALL LIMITATION ON ITEMIZED DEDUCTIONS.

    (a) IN GENERAL- Subsection (c) of section 68 of the Internal Revenue Code of 1986 (relating to overall limitation on 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 thereof the following new paragraph:

      ‘(4) the deduction under section 170 (relating to charitable, etc., contributions and gifts).’

    (b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1994.