[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 298 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 298

  To amend the Internal Revenue Code of 1986 to allow nonitemizers a 
  deduction for a portion of their charitable contributions, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 8, 2001

Mr. McConnell (for himself and Mr. Dodd) 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 nonitemizers a 
  deduction for a portion of their 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. SHORT TITLE.

    This Act may be cited as the ``Giving Incentives for Taxpayers 
Act''.

SEC. 2. 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.--
            ``(1) In general.--In the case of an individual who does 
        not itemize the individual's deductions for the taxable year, 
        the amount allowable under subsection (a) shall be taken into 
        account as a direct charitable deduction under section 63.
            ``(2) Limitation.--The portion of the amount allowable 
        under subsection (a) to which paragraph (1) applies for the 
        taxable year shall not exceed $500 ($1,000 in the case of a 
        joint return).''.
    (b) Direct Charitable Deduction.--
            (1) In general.--Section 63(b) of the Internal Revenue Code 
        of 1986 (relating to individuals who do not itemize their 
        deductions) 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 the 
        following new paragraph:
            ``(3) the direct charitable deduction.''.
            (2) Definition.--Section 63 of such Code (relating to 
        taxable income defined) 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.--Section 63(d) of such Code 
        (defining itemized deductions) 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 the following new paragraph:
            ``(3) the direct charitable deduction.''.
    (c) Time When Contributions Deemed Made.--Section 170(f) of the 
Internal Revenue Code of 1986 (relating to disallowance of deduction in 
certain cases and special rules) is amended by adding at the end the 
following new paragraph:
            ``(10) Time when contributions deemed paid.--For purposes 
        of this section, in the case of an individual, a taxpayer shall 
        be deemed to have paid a charitable contribution on the last 
        day of the preceding taxable year if the contribution is paid 
        on account of such taxable year and is paid not later than the 
        time prescribed by law for filing the return for such taxable 
        year (not including extensions thereof).''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.
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