[Congressional Record (Bound Edition), Volume 156 (2010), Part 3]
[House]
[Pages 3044-3047]
[From the U.S. Government Publishing Office, www.gpo.gov]




  ACCELERATING TAX BENEFITS FOR DONATIONS TO CHILE EARTHQUAKE VICTIMS

  Mr. LEVIN. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 4783) to accelerate the income tax benefits for charitable cash 
contributions for the relief of victims of the earthquake in Chile, and 
to extend the period from which such contributions for the relief of 
victims of the earthquake in Haiti may be accelerated.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 4783

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. ACCELERATION OF INCOME TAX BENEFITS FOR CHARITABLE 
                   CASH CONTRIBUTIONS FOR RELIEF OF VICTIMS OF 
                   EARTHQUAKE IN CHILE.

       (a) In General.--For purposes of section 170 of the 
     Internal Revenue Code of 1986, a taxpayer may treat any 
     contribution described in subsection (b) made after February 
     26, 2010, and on or before April 15, 2010, as if such 
     contribution were made on December 31, 2009, and not in 2010.
       (b) Contribution Described.--A contribution is described in 
     this subsection if such contribution is a cash contribution 
     made for the relief of victims in areas affected by the 
     earthquake in Chile on February 27, 2010, for which a 
     charitable contribution deduction is allowable under section 
     170 of the Internal Revenue Code of 1986.
       (c) Recordkeeping.--In the case of a contribution described 
     in subsection (b), a telephone bill showing the name of the 
     donee organization, the date of the contribution, and the 
     amount of the contribution shall be treated as meeting the 
     recordkeeping requirements of section 170(f)(17) of the 
     Internal Revenue Code of 1986.

     SEC. 2. EXTENSION OF PERIOD FROM WHICH CHARITABLE CASH 
                   CONTRIBUTIONS FOR RELIEF OF VICTIMS OF 
                   EARTHQUAKE IN HAITI MAY BE ACCELERATED.

       (a) In General.--Subsection (a) of section 1 of Public Law 
     111-126 is amended by striking ``before March 1, 2010'' and 
     inserting ``on or before April 15, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made after February 28, 2010.

     SEC. 3. BUDGETARY PROVISIONS.

       (a) Statutory Paygo.--The budgetary effects of this Act, 
     for the purpose of complying with the Statutory Pay-As-You-Go 
     Act of 2010, shall be determined by reference to the latest 
     statement titled ``Budgetary Effects of PAYGO Legislation'' 
     for this Act, submitted for printing in the Congressional 
     Record by the Chairman of the Committee on the Budget of the 
     House of Representatives, provided that such statement has 
     been submitted prior to the vote on passage.
       (b) Emergency Designation.--
       (1) Statutory paygo.--This Act is designated as an 
     emergency requirement pursuant to section 4(g) of the 
     Statutory Pay-As- You-Go Act of 2010 (Public Law 111-139; 2 
     U.S.C. 933(g)).
       (2) House paygo rules.--All applicable provisions in this 
     Act are designated as an emergency for purposes of pay-as-
     you-go principles.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Michigan (Mr. Levin) and the gentleman from Illinois (Mr. Roskam) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Michigan.


                             General Leave

  Mr. LEVIN. Mr. Speaker, I ask unanimous consent that all Members have 
5 legislative days to revise and extend their remarks and to insert 
extraneous material in the Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Michigan?
  There was no objection.
  Mr. LEVIN. I yield myself such time as I may consume.
  Mr. Speaker, Ranking Member David Camp is not here today because of a

[[Page 3045]]

death in his family. The distinguished gentleman from Illinois is going 
to be handling the time on the minority side.
  On behalf of my colleague and friend Mr. Camp and the gentleman from 
Illinois, I ask that the nonpartisan Joint Committee on Taxation be 
asked to make available to the public a technical explanation of the 
bill. The technical explanation expresses the committee's understanding 
and legislative intent behind this important bill. It is available on 
the joint committee's Web site at www.jct.gov, and it is listed under 
document No. JCX-08-10.
  Mr. Speaker, we rise today on this very important bill. It would 
allow for charitable contributions paid to victims of the Chilean 
earthquake on or before April 15 of this year, which is the tax return 
deadline, to be claimed as deductions on taxpayers' 2009 tax returns. 
Of course, absent this change, taxpayers would need to wait until next 
year to claim deductions for these contributions.
  In addition--and this is very important--the bill would provide 
taxpayers with a little more time relating to the victims of the 
Haitian earthquake so that they could make charitable contributions 
through April 15, extending it beyond March 1.
  So let me, if I might, say just a few words.
  I think all of us know graphically what is involved here. I checked, 
and the catastrophe in Haiti is the largest of its kind on record in 
the Western Hemisphere. We have also seen the catastrophe in Chile. I 
think all of us want to be sure that the American people can join 
together to express their alliances with the people of Chile and with 
the people of Haiti.
  Like lots of families, our family has had a connection with both 
countries. My son Andy has been to Haiti many times. He was there as a 
monitor for one of the elections when there was immense violence, and I 
was concerned for his safety. He is able to speak Creole to express his 
interest in Haiti. So that's one way, in addition to my service in the 
Foreign Aid Agency, that our family has had contact with the people of 
Haiti.
  Yet I think all of us have had that contact with the people of Haiti 
since the catastrophe, the worst of its kind on record in the Western 
Hemisphere, and I think all of us very much want to be sure that we can 
express our support, our alliance and can give our charitable 
contributions.
  As to Chile, we could see the immense devastation. That country was 
prepared for an earthquake of virtually any magnitude; but this 
magnitude, one of the very worst in the history of the country, shook 
up the country. It shook up its foundations in many places, and it led 
to the loss of many, many lives.
  So I come here today on behalf of the committee and, I think, on 
behalf of all of us in this Congress. I believe the gentleman from 
Illinois and I come here today on behalf of all of the American people, 
and we ask that we have unanimous consent for this legislation.
  Mr. Speaker, I yield the balance of my time to a distinguished member 
of the committee, my good friend and pal, the gentleman from Oregon 
(Mr. Blumenauer), and I ask unanimous consent that he be allowed to 
control that time.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Michigan?
  There was no objection.

                              {time}  1230

  Mr. ROSKAM. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I want to thank and congratulate Chairman Levin for his 
leadership on this issue, and particularly want to thank him for the 
gesture of reaching out to the minority on this and hope it is a 
glimpse of things to come.
  As the chairman indicated, this is one of these areas that clearly 
all of America comes together on. There are ample examples of where we 
have done this in the past, obviously with the tsunami back in 2005, 
and most recently you had members of the Ways and Means Committee that 
were on the floor together urging us to change the Tax Code to 
accommodate the relief efforts in Haiti.
  This also is really worthy of us coming together quickly in this tax 
season and allowing Americans to make contributions to Chile and, in 
fact, extending the period of time that they are able to make 
contributions to Haitian relief efforts, all in the context of 
completing their 2009 tax returns.
  Why is this important? It is important because in order to bring 
rescue and recovery in times of great crisis, it takes more than simply 
the American Government working. That is important, but it also takes 
the American public.
  I had an event in my district, Mr. Speaker, a couple of weeks ago, 
where we brought together folks to discuss Haitian relief efforts. My 
recollection is that there was a Red Cross official who was there, and 
she said a very interesting thing. She said that the event in Haiti, 
and I know we are talking about Chile today primarily, but she said the 
event in Haiti had redefined what it means to be local.
  I thought, Isn't that interesting? Here we have folks that have 
responded incredibly generously, Americans have, at the sight and the 
sounds and the visuals of real suffering in our part of the world, and 
what have they done? They have taken their checkbook out. They have 
written a check. They have donated online. They have donated famously 
on their cell phones now in overwhelming numbers. But I think it was 
really poignant when she said local contributions and the definition of 
a local tragedy has been redefined. So here we are today, Republicans 
and Democrats together, saying that this is an area where we need to 
move forward.
  I know that Mr. Camp, the ranking member from Michigan, would have 
been here, but, as Chairman Levin mentioned, he has had a death in the 
family and he has that obligation. I know I speak for an overwhelming 
majority of Republicans when saying this is an area that we should all 
come together on and move quickly to move this legislation.
  I reserve the balance of my time.
  Mr. BLUMENAUER. Mr. Speaker, I yield myself such time as I may 
consume.
  This has been a particularly difficult period of time for all of us 
as we witnessed the victims of these two enormous tragedies attempt to 
repair the devastation that resulted from two of the largest 
earthquakes that we have seen in recent times.
  As we laid witness to the victims of the Haiti earthquake in January, 
I had a chance a couple of weeks ago to see for myself the magnitude of 
the devastation. As somebody who was on the scene shortly after the 
tsunami 5 years ago, I will say that what I saw in Haiti not only 
rivaled that, but was actually worse than anything I had seen in Banda 
Aceh or Buket or in Sri Lanka. Then, just a few weeks later, we had an 
earthquake even larger, an 8.8, rock the country of Chile.
  But through these tragedies, one thing is abundantly clear, and that 
is the generosity and compassion of the American people being as strong 
as ever. It is hard to explain, really, the impact that we see of these 
dedicated volunteers on the ground, moving to provide services that in 
some cases were not available at all prior to the tragedy.
  Then looking at the earthquake in Chile last week, the outpouring of 
American support is even more remarkable, given the fact that everybody 
put all these resources just a few days before into Haiti. Clearly, 
there is no compassion fatigue on the part of the American public.
  We need to take a step back and realize that we are talking about 
almost a quarter million people who have died between the two, and over 
1 million people displaced, and we are still finding the definition of 
the problem. Particularly as it relates to Haiti, we are going to find 
that the death toll is likely to grow much higher if we are not able to 
deal with the problems of water and sanitation.
  Here again, American voluntary efforts from nongovernment 
organizations are providing critical services, and donations in Haiti 
alone have already reached $1 billion. They enable

[[Page 3046]]

these charitable organizations and nongovernment organizations to 
expedite the care and services needed for those who are injured and 
homeless, to help our neighbors get to safety and begin picking up the 
pieces and rebuilding their lives.
  We must be clear that the road to recovery will not be short in 
either country. We know that we need to expedite anything we can for 
Americans to be part of that process. American families who have given 
to facilitate the recovery ought to know that we are working to show 
appreciation of that compassion to incent further actions with this 
adjustment.
  As both my colleagues have made clear, but we need to drive home, any 
contribution after February 26 and before April 15 to the victims of 
the earthquake in Chile, people can claim these contributions, 
charitable contributions, on the tax return that they are preparing now 
for the last tax year.
  In addition, the adjustment being made for Haiti, extending it to 
April 15, is an important addition. This is in keeping with what we did 
with the tsunami that struck in 2004.
  There is a special provision here that I want to call note to, 
because we have watched the innovation take place in the charitable 
sector. The era of the cell phone and text messaging has made it 
possible for hundreds of millions of dollars of charitable 
contributions to be made through cell phone text messaging. It enabled 
people to do it conveniently and quickly. It speeded the aid along and, 
no doubt in my mind, it increased the amount of money that went to 
these people in need.
  Under current law, obviously, taxpayers must receive documentation 
from the charity or rely on bank records to claim a deduction on their 
tax return, but when you are making a contribution through a text 
message, the only paper documentation individuals receive is from the 
telephone company. Right now, it is unclear whether individuals will be 
able to rely on a telephone bill to claim a charitable deduction. As a 
result of this legislation, we are clarifying that taxpayers making 
charitable contributions to victims of the Haiti earthquake through the 
text messaging effort will be able to rely on their cell phone bill 
when claiming a charitable deduction.
  To be clear, we all know that Americans are not doing this primarily 
for a tax deduction. It is the generous spirit of the American public 
and concern for men and women around the world who suffer from tragedy. 
But providing this incentive and clarifying the law makes it a little 
easier for the families who have given of themselves and others, and I 
would urge my colleagues to support its passage.
  I reserve the balance of my time.
  Mr. ROSKAM. Mr. Speaker, I am pleased to yield such time as he may 
consume to the gentleman from Florida (Mr. Lincoln Diaz-Balart), a 
great champion of freedom and hope and rescue in the Americas.
  Mr. LINCOLN DIAZ-BALART of Florida. I thank my dear friend Mr. Roskam 
for the time, and I simply rise to join my voice in praise and 
commendation for all those who have made possible that this resolution 
come to the floor. I think it speaks very highly of this Congress.
  Mr. Speaker, there is no more generous nation in the world than the 
American Nation, the American people. One sees that generosity time and 
time again. As Mr. Blumenauer mentioned, we just saw an extraordinary 
outpouring of generosity toward the people of Haiti, and then we have 
seen another tragedy, and the American people, with regard to Chile, 
are demonstrating once again that extraordinary generosity.
  So I think it is so appropriate, and that is why I rise to commend 
all of those that have made this resolution possible, to accelerate the 
deduction for the donations that Americans have made, extend that 
policy with regard to Haiti and to make it possible with regard to the 
donations that are being made or have been made or will be made for 
those who have suffered in Chile. Our hearts and our prayers go out to 
those who suffer in both of those neighbor, friendly nations. They are 
wonderful people, great friends of the United States.
  Remembering the victims, I think the Congress, by this action today, 
not only takes a step that is consistent with the generosity of the 
American people, but I think makes a very commendable act. So I simply 
wanted to join my voice of commendation for all of those who have made 
this possible.
  Mr. BLUMENAUER. Mr. Speaker, I have no further requests for time, and 
I reserve the balance of my time.
  Mr. ROSKAM. Mr. Speaker, in a nutshell, this bill does three things 
then: It extends the time period for contributions to Haiti for 
attribution to a 2009 tax return; it extends the contribution until 
April 15th for contributions to Chile for relief efforts for the 2009 
tax return; and, as the gentleman from Oregon mentioned, it cleans up 
this ambiguity as it relates to contributions on cell phones. It is 
well thought out, it is timely, there is an urgency to it, and I urge 
its passage.
  I yield back the balance of my time.
  Mr. BLUMENAUER. Mr. Speaker, I would conclude by just saying that I 
do appreciate the rapid response of the committee, the bipartisan 
support, to honor the generosity of Americans in both these tragedies, 
to clean up the legislation and move it forward. But I hope, Mr. 
Speaker, that this is a symbol of a longer-term commitment on the part 
of this Congress, that we match the generosity of spirit of Americans 
and of our partners overseas. We have seen other countries step 
forward, along with charities and other nongovernmental organizations.
  I am hopeful that we will exhibit a commitment to follow through 
after the initial dust has settled to be full partners with other 
countries, with the people in Chile and Haiti, to deal with the long 
and difficult recovery. Lives have been traumatized. There are still 
people at risk from disease. I am hopeful that we in Congress will have 
the support and the follow through to make sure that the United States 
Government is a full partner with these other critical areas to make 
sure that we make life hopefully return to normal as quickly as 
possible for the people who have suffered this devastation.
  Mr. VAN HOLLEN. Mr. Speaker, as an original cosponsor of H.R. 4783, I 
rise in support of this bipartisan legislation and urge its immediate 
enactment to support the ongoing recovery efforts in Chile and Haiti.
  This bill does two simple things. First, it allows anybody making a 
cash contribution for earthquake relief in Chile before April 15, 2010, 
to receive a charitable deduction for the qualifying contribution on 
their 2009 tax return. And second, it provides the same tax benefit to 
those wishing to support relief efforts in Haiti, by extending the 
original March 1, 2010, deadline for Haiti contributions to April 15, 
2010, as well.
  These simple steps are consistent with our nation's tradition of 
responding to those in need and will provide an extra incentive for 
generous Americans to make timely contributions to these crises when 
the assistance is needed most.
  Ms. JACKSON LEE of Texas. Mr. Speaker, I rise in support of H.R. 
4783--a bill that will accelerate the income tax benefits for 
charitable cash contributions for the relief of victims of the 
earthquake in Chile.
  As you know, on Saturday, February 27, 2010, a massive, 8.8 magnitude 
earthquake, one of the largest ever recorded, struck off of the coast 
of Chile. An estimated 2,000,000 people, including upwards of 1,500,000 
displaced persons, have been directly affected by the earthquake, the 
tsunami, and its aftermath. As the casualties continue to grow, there 
is a great deal of extensive damage to highways, bridges, apartments, 
and infrastructure, have led the government of Chile to declare a 
`state of catastrophe.' Since the initial earthquake, there have been 
over 100 aftershocks, which include 8 aftershocks registering above a 
6.0 magnitude. These aftershocks continue to affect the coast and the 
rest of the country.
  According to the United States Geological Survey, Concepcion, Chile's 
second largest city, was 70 miles from the earthquake's epicenter and 
suffered some of the worst damage. Thousands of its residents initially 
remained cut-off from the remainder of the country without any basic 
necessities, such as running water and electricity. The coastal town of 
Dichato and its 4,000 residents were among the hardest hit and is 80 
percent destroyed. 80 percent of Talcahuano's 180,000 residents living 
on the Chilean coast were left homeless by the earthquake. Initial 
estimates of damages range from $15,000,000,000 to

[[Page 3047]]

$30,000,000,000, and basic necessities across the country, including 
electricity, clean water access, telephone access, and communication 
systems continue to be restored on a progressive basis in many zones.
  Chile's stringent building codes, which one local architect called 
`our proud building standards,' as well as the Government of Chile's 
ability to implement them greatly mitigated the impact of this 
catastrophic natural event both in terms of casualties and physical 
damage to the infrastructure of this country. The Government of Chile 
has taken significant measures to maintain order and public security in 
the streets in order to prevent more widespread panic and chaos as 
damage assessments are made and relief is delivered.
  America is again responding, and will continue to respond with 
immediate humanitarian assistance to help the people of this struggling 
nation rebuild their livelihoods. I send my condolences to the people 
and government of Chile as they grieve once again in the aftermath of a 
natural disaster. As Chile's neighbor, I believe it is the United 
States' responsibility to help Chile recover, and build the capacity to 
mitigate against future disasters.
  Throughout my time in Congress, I have been highly involved in 
strengthening the relationship between the U.S. and countries abroad. I 
have worked to establish positive and productive partnerships with 
local development officials, nonprofit organizations, and various 
leaders to establish a strong web of support for countries abroad. In 
collaboration with the Congressional Black Caucus, I have been a 
continual advocate of providing assistance to various countries to 
strengthen their fragile democratic processes, continue to improve 
security, and promote economic development among other concerns such as 
the protection of human rights, combating narcotics, arms, and human 
trafficking, addressing migration, and alleviating poverty.
  Once again, I am devastated by the immeasurable tragedy that occurred 
in Chile. Along with my colleagues, I hope to visit Chile in the near 
future to meet with their leaders and see what the United States can do 
to rebuild the shattered livelihoods.
  America is responding to the earthquakes in Chile and will continue 
to respond with immediate humanitarian assistance to help the people of 
Chile rebuild their livelihoods. I send my condolences to the people 
and government of Chile as they grieve once again in the aftermath of a 
natural disaster. As Chile's friend, it is the United States' 
responsibility to help Chile recover, and build the capacity to 
mitigate against future disasters.
  Financially, 2009 was not an easy year for many Americans. Although 
thousands of jobs were created and we are back on the road to economic 
recovery, Americans lived on tighter budgets than usual. This 
legislation will allow those Americans who have generously donated 
money to Chile to receive their tax break this year instead of next 
year.
  In January of 2005, Congress enacted this type of relief for 
individuals that made charitable contributions to victims of the Indian 
Ocean tsunami that occurred in late December of 2004. That bill (H.R. 
241 in the 109th Congress) passed the House of Representatives without 
objection and subsequently passed the Senate by unanimous consent. 
Additionally, these same benefits were extended to people who donated 
to Haiti. I hope that this legislation, like our response to the 2004 
tsunami, and January's earthquake in Haiti will encourage Americans to 
contribute more money to Chile. As Haiti starts on its long recovery, 
every dollar is critically important. Once again, I am proud to 
represent such a compassionate and generous nation.
  Mr. BLUMENAUER. I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Michigan (Mr. Levin) that the House suspend the rules 
and pass the bill, H.R. 4783.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

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