[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1493 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 1493

  To amend the Internal Revenue Code of 1986 to allow nonitemizers a 
deduction for a portion of their charitable contributions and to exempt 
 the charitable contribution deduction from the overall limitation on 
                          itemized deductions.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 7, 1995

    Mr. Crane (for himself, Mr. Rangel, and Mr. Cox) 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 nonitemizers a 
deduction for a portion of their charitable contributions and to exempt 
 the charitable contribution deduction from the overall limitation on 
                          itemized deductions.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. 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, 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 $1,000 ($2,000 in the case 
of a joint return).''
    (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, 1995.

SEC. 2. 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, 1995.
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