[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 194 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 194

   To amend the Internal Revenue Code of 1986 to make permanent the 
section 170(e)(5) rules pertaining to gifts of publicly-traded stock to 
          certain private foundations, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 22, 1997

   Mr. Chafee (for himself, Mr. Moynihan, Mr. Abraham, and Mr. Kyl) 
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 make permanent the 
section 170(e)(5) rules pertaining to gifts of publicly-traded stock to 
          certain private foundations, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
    (a) In General.--Section 170(e)(5) of the Internal Revenue Code of 
1986 (relating to special rule for contributions of stock for which 
market quotations are readily available) is amended by striking 
subparagraph (D).
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to contributions made after May 31, 1997.

SEC. 2. PRIVATE FOUNDATION GRANTS TO FOREIGN ORGANIZATIONS TREATED AS 
              PRIVATE FOUNDATIONS.

    (a) In General.--Section 4942(g)(3) of the Internal Revenue Code of 
1986 (relating to certain contributions to section 501(c)(3) 
organizations) is amended to read as follows:
            ``(3) Certain contributions to section 501(c)(3) 
        organizations.--For purposes of this section, the term 
        `qualifying distribution' includes a contribution to a section 
        501(c)(3) organization described in clause (i) or (ii) of 
        paragraph (1)(A) if--
                    ``(A) not later than the close of the first taxable 
                year after its taxable year in which such contribution 
                is received--
                            ``(i) such organization makes a 
                        distribution equal to the amount of such 
                        contribution and such distribution is a 
                        qualifying distribution (within the meaning of 
                        paragraph (1) or (2), without regard to this 
                        paragraph) which is treated under subsection 
                        (h) as a distribution out of corpus (or would 
                        be so treated if such section 501(c)(3) 
                        organization were a private foundation which is 
                        not an operating foundation), or
                            ``(ii) in the case of a grant to a foreign 
                        organization that is not controlled (directly 
                        or indirectly) by the foundation or 1 or more 
                        disqualified persons (as defined in section 
                        4946) with respect to the foundation, such 
                        organization makes expenditures equal to the 
                        amount of such contribution to accomplish 1 or 
                        more purposes described in section 170(c)(2)(B) 
                        and the grantor foundation exercises 
                        expenditure responsibility with respect to the 
                        grant (as defined in section 4945(h)), and
                    ``(B) the private foundation making the 
                contribution obtains adequate records or other 
                sufficient evidence from such organization showing that 
                the requirements of subparagraph (A) are satisfied.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 1996.

SEC. 3. CHANGING DUE DATE FOR FIRST QUARTER ESTIMATED TAX PAYMENTS BY 
              PRIVATE FOUNDATIONS.

    (a) In General.--Section 6655(g)(3) of the Internal Revenue Code of 
1986 (relating to certain tax exempt organizations) is amended by 
inserting after subparagraph (C) the following new subparagraph:
                    ``(D) In the case of any private foundation, 
                subsection (c)(2) shall be applied by substituting `May 
                15' for `April 15'. ''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 1996.
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