To limit contributions by nonparty multicandidate political committees in House of Representatives elections, to provide an income tax credit for contributions to nonincumbent candidates in such elections, and for other purposes.

Summary: Amends the Federal Election Compaign Act of 1971 to:  (1) limit nonparty multicandidate political committee (PAC) and out-of-State contributions to House of Representatives candidates; and (2) reduce the reporting threshold for certain contributions and expenditures. 
Amends the Internal Revenue Code to provide an income tax credit for contributions to nonincumbent House of Representatives candidates. 
Entitles nonincumbent House of Representatives candidates to reduced third class mail rates for campaign materials.

SECTION 1. PERCENTAGE LIMITATION ON NONPARTY MULTICANDIDATE POLITICAL 
              COMMITTEE CONTRIBUTIONS ACCEPTED BY HOUSE OF 
              REPRESENTATIVES CANDIDATES.

    Section 315 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441a) is amended by adding at the end the following new subsection:
    ``(i) A candidate for the office of Representative in, or Delegate 
or Resident Commissioner to, the Congress may not, with respect to an 
election, accept contributions from nonparty multicandidate political 
committees that, in the aggregate, exceed 40 percent of the total of 
contributions accepted from all sources.''.

SEC. 2. INCOME TAX CREDIT FOR CONTRIBUTIONS TO NONINCUMBENT HOUSE OF 
              REPRESENTATIVES CANDIDATES.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 23 the 
following new section:

``SEC. 24. CONTRIBUTIONS TO NONINCUMBENT HOUSE OF REPRESENTATIVES 
              CANDIDATES.

    ``(a) General Rule.--In the case of an individual, there shall be 
allowed, subject to the limitations of subsection (b), as a credit 
against the tax imposed by this chapter for the taxable year, an amount 
equal to one-half of all contributions to candidates for the office of 
Representative in, or Delegate or Resident Commissioner to, the 
Congress (other than contributions to an incumbent of any such office), 
payment of which is made by the taxpayer within the taxable year.
    ``(b) Limitations.--
            ``(1) Maximum credit.--The credit allowed by subsection (a) 
        for a taxable year shall not exceed $50 ($100 in the case of a 
        joint return under section 6013).
            ``(2) Verification.--The credit allowed by subsection (a) 
        shall be allowed, with respect to any contribution, only if 
        such contribution is verified in such manner as the Secretary 
        shall prescribe by regulations.
    ``(c) Definitions.--For purposes of this section, the terms 
`candidate' and `contribution' have the meanings given those terms in 
section 301 of the Federal Election Campaign Act of 1971.
    ``(d) Cross Reference.--

                                ``For disallowance of credits to 
estates and trusts, see section 642(a)(2).''.
    (b) Technical Amendments.--
            (1) Subsection (a) of section 642 of such Code is amended 
        to read as follows:
    ``(a) Credits Against Tax.--
            ``(1) Foreign tax credit allowed.--An estate or trust shall 
        be allowed the credit against tax for taxes imposed by foreign 
        countries and possessions of the United States, to the extent 
        allowed by section 901, only in respect of so much of the taxes 
        described in such section as is not properly allocable under 
        such section to the beneficiaries.
            ``(2) Credit for contributions to nonincumbent house of 
        representatives candidates not allowed.--An estate or trust 
        shall not be allowed the credit against tax for contributions 
        to nonincumbent House of Representatives candidates provided by 
        section 24.''.
            (2) The table of sections for subpart A of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 23 the following new item:

                              ``Sec. 24. Contributions to nonincumbent 
                                        House of Representatives 
                                        candidates.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1993.

SEC. 3. NOTIFICATION REQUIREMENTS FOR EXPENDITURES BY CERTAIN POLITICAL 
              COMMITTEES IN HOUSE OF REPRESENTATIVES ELECTIONS.

    Section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
434) is amended by adding at the end the following new subsection:
    ``(d) In addition to any other reporting requirement provided for 
by law, each political committee (other than a political committee of a 
political party or a political committee of a candidate for the office 
of Representative in, or Delegate or Resident Commissioner to, the 
Congress) that makes expenditures with respect to an election for such 
office shall--
            ``(1) not later than one week after the date on which such 
        committee makes aggregate expenditures in excess of $50, so 
        notify each candidate in the election;
            ``(2) in the case of a committee to which paragraph (1) 
        applies, simultaneously with submission of any report of 
        expenditures to the Commission, notify each candidate in the 
        election of all expenditures in the reporting period; and
            ``(3) not later than one week after the date on which such 
        committee makes any single expenditure in excess of $50, so 
        notify each candidate in the election.''.

SEC. 4. PERCENTAGE LIMITATION ON OUT-OF-STATE CONTRIBUTIONS ACCEPTABLE 
              BY HOUSE OF REPRESENTATIVES CANDIDATES.

    Section 315 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441a), as amended by section 1 of this Act, is further amended by 
adding at the end the following new subsection:
    ``(j) A candidate for the office of Representative in, or Delegate 
or Resident Commissioner to, the Congress may not, with respect to an 
election, accept contributions from individuals who are not residents 
of the State involved that, in the aggregate, exceed 25 percent of the 
total of contributions accepted from all individuals.''.

SEC. 5. REDUCTION IN THRESHOLD AMOUNT FOR REPORTING OF CERTAIN 
              CONTRIBUTIONS AND EXPENDITURES.

    Section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
434), as amended by section 3, is further amended by striking out 
``$200'' each place it appears and inserting in lieu thereof ``$50''.

SEC. 6. REDUCED THIRD CLASS MAIL RATE FOR NONINCUMBENTS IN HOUSE OF 
              REPRESENTATIVES ELECTIONS.

    (a) In General.--Chapter 34 of title 39, United States Code, is 
amended by adding at the end the following new section:
Sec. 3407. Reduced third class mail rate for nonincumbents in House of 
              Representatives elections
    ``(a)(1) A nonincumbent candidate for the office of Representative 
in, or Delegate or Resident Commissioner to, the Congress shall be 
entitled to send third class campaign material through the mails at a 
rate equal to one-half of the third class bulk mail rate.
    ``(2) The rate provided for in subsection (a) shall be available--
            ``(A) for 3 mailings in the congressional district 
        involved; and
            ``(B) only for material mailed to households with resident 
        registered voters.
    ``(b) There are authorized to be appropriated such amounts as may 
be necessary to reimburse the Postal Service for the difference between 
the revenues received for campaign materials mailed under subsection 
(a) and the revenues that the Postal Service would have received if 
such materials had been carried at the regular rate.''.
    (b) Clerical Amendment.--The table of sections for chapter 34 of 
title 39, United States Code, is amended by adding at the end the 
following new item:

                              ``3407. Reduced third class mail rate for 
                                        nonincumbents in House of 
                                        Representatives elections.''.