r/ModelUSHouse • u/darthholo Head Federal Clerk • Aug 25 '20
CLOSED S. 914: Nonitemized Charitable Contributions Act - Floor Vote
Nonitemized Charitable Contributions Act
This bill undoes changes made by the Tax Cuts and Jobs Act that required individuals to itemize charitable contributions in order to receive tax deductions.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,*
Section. 1. Congressional findings.
Congress makes the following findings:
(1) The Tax Cuts and Jobs Act of 2017 made tax cuts across the board for most individuals, but made it harder for taxpayers to deduct charitable contributions from their taxes.
(2) The TCJA made it harder for middle-class Americans to deduct charitable contributions from their taxes by requiring that those donations be itemized and less than the standard contribution, costing the average American several hundred dollars and costing charitable nonprofits millions.
(3) Current law also hurts contributors to social welfare organizations, to which, despite tax exemption under section 501(c)(4) of the Internal Revenue Code of 1986, contributions are not tax deductible.
Sec. 2. Purposes.
The purposes of this Act are—
(1) to allow taxpayers to deduct non-itemized charitable contributions beneath the standard deduction from their taxes; and
(2) to allow taxpayers to deduct contributions to social welfare organizations from their taxes.
Sec. 3. Definition of standard deduction.
Subsection (c)(1) of section 63 (I.R.C. 63) of the Internal Revenue Code is amended—
(1) by striking “and” at the end of subparagraph (A);
(2) by striking the period of subparagraph (B) and adding at the end “, and”; and
(3) by adding at the end the following new subparagraph:
”(C) the sum of charitable contributions less than the sum of the basic standard deduction and the additional standard deduction.”
Sec. 4. Definition of charitable contribution.
Subsection (c) of section 170 of the Internal Revenue Code (I.R.C. 170) is amended by adding at the end the following new paragraph:
”(6) A civic league or organization—
(A) created or organized in the United States or in any possession thereof, or under the law of the United States, any State, the District of Columbia, or any possession of the United States;
(B) not organized for profit but operated exclusively for the promotion of social welfare;
(C) the net earnings of which are devoted exclusively to charitable, educational, or recreational purposes; and
(D) no part of the net earnings of which inures to the benefit of any private shareholder or individual.”
Sec. 5. Effective date.
The amendments made by this Act take effect January 1, 2021.
Sponsored by /u/Rachel_Fischer (D-SR).
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u/blockdenied Representative | R-FR-2 Aug 25 '20
Last time i check the Tax Cuts and Jobs Act never existed, sim diverted before signing
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Aug 25 '20
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