[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4356 Introduced in House (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.

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