[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 790 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 790

 To amend the Internal Revenue Code of 1986 to allow Indian tribes to 
             receive charitable contributions of inventory.


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                   IN THE SENATE OF THE UNITED STATES

                              May 22, 1997

  Mr. Daschle 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 allow Indian tribes to 
             receive charitable contributions of inventory.

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

SECTION 1. CHARITABLE CONTRIBUTIONS OF INVENTORY TO INDIAN TRIBES.

    (a) In General.--Section 170(e)(3) of the Internal Revenue Code of 
1986 (relating to a special rule for certain contributions of inventory 
or other property) is amended by adding at the end the following new 
subparagraph:
                    ``(D) Special rule for indian tribes.--
                            ``(i) In general.--An Indian tribe (as 
                        defined in section 7871(c)(3)(E)(ii)) shall be 
                        treated as an organization eligible to be a 
                        donee under subparagraph (A).
                            ``(ii) Use of property.--For purposes of 
                        subparagraph (A)(i), if the use of the property 
                        donated is related to the exercise of an 
                        essential governmental function of the Indian 
                        tribal government, such use shall be treated as 
                        related to the purpose or function constituting 
                        the basis for the organization's exemption.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 1996.
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