[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1115 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                S. 1115

 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 24, 2005

 Ms. Murkowski (for herself and Mr. Johnson) 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 special rule for contributions of inventory and other 
property) is amended by adding at the end the following new 
subparagraph:
                    ``(D) Special rule for indian tribes.--
                            ``(i) In general.--For purposes of this 
                        paragraph, 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 (within the meaning of 
                        section 7871), 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 this section shall apply 
to taxable years beginning after December 31, 2005.
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