[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1300 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1300

 To amend the Internal Revenue Code of 1986 to encourage foundational 
                    and corporate charitable giving.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 1, 2001

 Mr. Santorum (for himself and Mr. Lieberman) 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 encourage foundational 
                    and corporate charitable giving.

    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 ``Foundational and Corporate 
Charitable Giving Incentives Act of 2001''.

SEC. 2. REPEAL OF EXCISE TAX ON NET INVESTMENT INCOME OF TAX-EXEMPT 
              FOUNDATIONS.

    (a) Repeal.--Subsection (a) of section 4940 of the Internal Revenue 
Code of 1986 (relating to excise tax based on investment income) is 
repealed.
    (b) Conforming Amendments.--
            (1) Section 4940 of the Internal Revenue Code of 1986 is 
        amended--
                    (A) by redesignating subsections (b), (c), and (d) 
                as subsections (a), (b), and (c), respectively,
                    (B) by striking subsection (e), and
                    (C) in subsection (a), as redesignated by paragraph 
                (1), by striking ``(A) the tax imposed under subsection 
                (a) (computed as if such subsection applied to such 
                private foundation for the taxable year),'' and 
                inserting ``(A) an amount equal to 2 percent of the net 
                investment income of such foundation for the taxable 
                year,''.
            (2) Section 4942(f)(3)(A) of such Code is amended by 
        striking ``section 4940(c)(3)(B)'' and inserting ``section 
        4940(b)(3)(B)''.
            (3) Section 4945(d)(4)(A) of such Code is amended by 
        striking ``section 4940(d)(2)'' and inserting ``section 
        4940(c)(2)''.
            (4) Section 4948(a) of such Code is amended by striking 
        ``section 4940(c)(2)'' and inserting ``section 4940(b)(2)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2001.

SEC. 3. S CORPORATION CHARITABLE CONTRIBUTIONS INCENTIVE.

    (a) Stock Basis Adjustment.--Paragraph (1) of section 1367(a) of 
the Internal Revenue Code of 1986 (relating to adjustments to basis of 
stock of shareholders, etc.) is amended by striking ``and'' at the end 
of subparagraph (B), by striking the period at the end of subparagraph 
(C) and inserting ``, and'', and by adding at the end the following new 
subparagraph:
                    ``(D) the excess of the deductions for charitable 
                contributions over the basis of the property 
                contributed.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2001.

SEC. 4. HIGHER LIMITATION ON CORPORATE CHARITABLE CONTRIBUTIONS.

    (a) In General.--Paragraph (2) of section 170(b) of the Internal 
Revenue Code of 1986 (relating to percentage limitations) is amended by 
striking ``10 percent'' and inserting ``25 percent''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2001.
                                 <all>