[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 893 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 893

  To amend the Internal Revenue Code of 1986 to provide a credit for 
           charitable contributions, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                 June 7 (legislative day, June 5), 1995

 Mr. Santorum 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 provide a credit for 
           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. CREDIT FOR CHARITABLE CONTRIBUTIONS TO CERTAIN PRIVATE 
              CHARITIES PROVIDING ASSISTANCE TO THE POOR.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 22 the 
following new section:

``SEC. 23. CREDIT FOR CERTAIN CHARITABLE CONTRIBUTIONS.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by this chapter for the 
taxable year an amount equal to the qualified charitable contributions 
which are paid by the taxpayer during the taxable year.
    ``(b) Limitation.--The credit allowed by subsection (a) for the 
taxable year shall not exceed $100 ($200 in the case of a joint 
return).
    ``(c) Qualified Charitable Contribution.--For purposes of this 
section, the term `qualified charitable contribution' means any 
charitable contribution (as defined in section 170(c)) made in cash to 
a qualified charity but only if the amount of each such contribution, 
and the recipient thereof, are identified on the return for the taxable 
year during which such contribution is made.
    ``(d) Qualified Charity.--
            ``(1) In general.--For purposes of this section, the term 
        `qualified charity' means, with respect to the taxpayer, any 
        organization described in section 501(c)(3) and exempt from tax 
        under section 501(a)--
                    ``(A) which is certified by the Secretary as 
                meeting the requirements of paragraphs (2) and (3),
                    ``(B) which is organized under the laws of the 
                United States or of any State in which the organization 
                is qualified to operate, and
                    ``(C) which is required, or elects to be treated as 
                being required, to file returns under section 6033.
            ``(2) Charity must primarily assist the poor.--An 
        organization meets the requirements of this paragraph only if 
        the predominant activity of such organization is the provision 
        of services to individuals whose annual incomes generally do 
        not exceed 150 percent of the official poverty line (as defined 
        by the Office of Management and Budget).
            ``(3) Minimum expenditure requirement.--
                    ``(A) In general.--An organization meets the 
                requirements of this paragraph only if the Secretary 
                reasonably expects that the annual exempt purpose 
                expenditures of such organization will not be less than 
                70 percent of the annual aggregate expenditures of such 
                organization.
                    ``(B) Exempt purpose expenditure.--For purposes of 
                subparagraph (A)--
                            ``(i) In general.--The term `exempt purpose 
                        expenditure' means any expenditure to carry out 
                        the activity referred to in paragraph (2).
                            ``(ii) Exceptions.--Such term shall not 
                        include--
                                    ``(I) any administrative expense,
                                    ``(II) any expense for the purpose 
                                of influencing legislation (as defined 
                                in section 4911(d)),
                                    ``(III) any expense primarily for 
                                the purpose of fundraising, and
                                    ``(IV) any expense for litigation 
                                on behalf of any individual referred to 
                                in paragraph (2).
    ``(e) Time When Contributions Deemed Made.--For purposes of this 
section, at the election of the taxpayer, a contribution which is made 
not later than the time prescribed by law for filing the return for the 
taxable year (not including extensions thereof) shall be treated as 
made on the last day of such taxable year.
    ``(f) Coordination With Deduction for Charitable Contributions.--
            ``(1) Credit in lieu of deduction.--The credit provided by 
        subsection (a) for any qualified charitable contribution shall 
        be in lieu of any deduction otherwise allowable under this 
        chapter for such contribution.
            ``(2) Election to have section not apply.--A taxpayer may 
        elect for any taxable year to have this section not apply.''
    (b) Qualified Charities Required To Provide Copies of Annual 
Return.--Subsection (e) of section 6104 of such Code (relating to 
public inspection of certain annual returns and applications for 
exemption) is amended by adding at the end the following new paragraph:
            ``(3) Charities receiving creditable contributions required 
        to provide copies of annual return.--
                    ``(A) In general.--Every qualified charity (as 
                defined in section 23(d)) shall, upon request of an 
                individual made at an office where such organization's 
                annual return filed under section 6033 is required 
                under paragraph (1) to be available for inspection, 
                provide a copy of such return to such individual 
                without charge other than a reasonable fee for any 
                reproduction and mailing costs. If the request is made 
                in person, such copies shall be provided immediately 
                and, if made other than in person, shall be provided 
                within 30 days.
                    ``(B) Period of availability.--Subparagraph (A) 
                shall apply only during the 3-year period beginning on 
                the filing date (as defined in paragraph (1)(D) of the 
                return requested).''
    (c) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 22 the following new item:

                              ``Sec. 23. Credit for certain charitable 
                                        contributions.''
    (d) Effective Date.--The amendments made by this section shall 
apply to contributions made after the 90th day after the date of the 
enactment of this Act in taxable years ending after such date.

SEC. 2. REPEAL OF CERTAIN CHANGES MADE IN THE EARNED INCOME CREDIT.

    (a) Repeal of Credit for Individuals Without Children.--
Subparagraph (A) of section 32(c)(1) of the Internal Revenue Code of 
1986 (defining eligible individual) is amended to read as follows:
                    ``(A) In general.--The term `eligible individual' 
                means any individual who has a qualifying child for the 
                taxable year.''
    (b) Repeal of Increases in Amount of Credit.--
            (1) Subsection (b) of section 32 of such Code is amended to 
        read as follows:
    ``(b) Percentages.--
            ``(1) In general.--The credit percentage and the phaseout 
        percentage shall be determined as follows:


                                                                                                                
 ``In the case of an eligible individual with:      The credit percentage is:      The phaseout percentage is:  
                                                                                                                
1 qualifying child.............................  34............................               15.98             
2 or more qualifying children..................  36............................               20.22             
                                                                                                                

      
            ``(2) Amounts.--The earned income amount and the phaseout 
        amount shall be determined as follows:


                                                                                                                
 ``In the case of an eligible individual with:    The earned income amount is:       The phaseout amount is:    
                                                                                                                
1 qualifying child.............................  $6,000........................             $11,000           
2 or more qualifying children..................  $8,425........................             $11,000.''          
                                                                                                                

      
            (2) Paragraph (1) of section 32(i) of such Code is amended 
        by striking ``subsection (b)(2)(A)'' and inserting ``subsection 
        (b)(2)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1995, except that 
adjustments shall be made under section 32(i) of the Internal Revenue 
Code of 1986 to the section 32(b)(2) of such Code (as amended by this 
section) for such taxable years.
                                 <all>