[Congressional Record Volume 147, Number 18 (Thursday, February 8, 2001)]
[Senate]
[Page S1228]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCONNELL (for himself and Mr. Dodd):
  S. 298. A bill to amend the Internal Revenue Code of 1986 to allow 
non-itemizers a deduction for a portion of their charitable 
contributions, and for other purposes; to the Committee on Finance.
  Mr. McCONNELL. Mr. President, I ask unanimous consent that the text 
of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 298

       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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