II 111th CONGRESS 2d Session S. 2937 IN THE SENATE OF THE UNITED STATES January 20, 2010 Mr. Schumer (for himself, Mrs. Gillibrand, Mr. Nelson of Florida, Mr. LeMieux, and Mr. Kerry) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To provide a temporary suspension of limitation on charitable contributions and to amend the Internal Revenue Code of 1986 to extend the enhanced charitable deduction for contributions of food inventory.

1.

Temporary suspension of limitations on charitable contributions

(a)

In general

Except as otherwise provided in subsection (b), section 170(b) of the Internal Revenue Code of 1986 shall not apply to qualified contributions and such contributions shall not be taken into account for purposes of applying subsections (b) and (d) of section 170 of such Code to other contributions. (b)

Treatment of excess contributions

For purposes of section 170 of such Code— (1)

Individuals

In the case of an individual— (A)

Limitation

Any qualified contribution shall be allowed only to the extent that the aggregate of such contributions does not exceed the excess of the taxpayer's contribution base (as defined in subparagraph (F) of section 170(b)(1) of such Code) over the amount of all other charitable contributions allowed under such section 170(b)(1). (B)

Carryover

If the aggregate amount of qualified contributions made in the contribution year (within the meaning of section 170(d)(1) of such Code) exceeds the limitation of subparagraph (A), such excess shall be added to the excess described in the portion of subparagraph (A) of such section which precedes clause (i) thereof for purposes of applying such section. (2)

Corporations

In the case of a corporation— (A)

Limitation

Any qualified contribution shall be allowed only to the extent that the aggregate of such contributions does not exceed the excess of the taxpayer's taxable income (as determined under paragraph (2) of section 170(b) of such Code) over the amount of all other charitable contributions allowed under such paragraph. (B)

Carryover

Rules similar to the rules of paragraph (1)(B) shall apply for purposes of this paragraph. (c)

Exception to overall limitation on itemized deductions

So much of any deduction allowed under section 170 of such Code as does not exceed the qualified contributions paid during the taxable year shall not be treated as an itemized deduction for purposes of section 68 of such Code. (d)

Qualified contributions

(1)

In general

For purposes of this section, the term qualified contribution means any charitable contribution (as defined in section 170(c) of such Code) if such contribution is— (A)for relief efforts related to the earthquake in Haiti occurring on January 12, 2010, (B)paid in cash during 2010 to an organization described in section 170(b)(1)(A) of such Code (other than an organization described in section 509(a)(3) of such Code), and (C)a contribution with respect to which the taxpayer has elected the application of this section. (2)

Exception

Such term shall not include a contribution if the contribution is for establishment of a new, or maintenance in an existing, segregated fund or account with respect to which the donor (or any person appointed or designated by such donor) has, or reasonably expects to have, advisory privileges with respect to distributions or investments by reason of the donor's status as a donor. (3)

Application of election to partnerships and s corporations

In the case of a partnership or S corporation, the election under paragraph (1)(C) shall be made separately by each partner or shareholder.

2.

Extension of enhanced charitable deduction for contributions of food inventory

(a)

In general

Clause (iv) of section 170(e)(3)(C) is amended by striking December 31, 2009 and inserting December 31, 2010. (b)

Effective date

The amendment made by this section shall apply to contributions made after December 31, 2009.