To amend the Internal Revenue Code of 1986 to provide a credit and a deduction for small political contributions.

Summary: Citizen Involvement in Campaigns Act of 2002 - Permits an individual a tax credit of up to $200 ($400 in the case of a joint return), equal to the verified amount of certain political contributions the individual made during the taxable year. Denies a deduction for any amount taken into account in determining the credit permitted in this Act.Allows a deduction of up to $600 ($1200 for a joint return). Allows the deduction whether or not a taxpayer itemizes other deductions.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Citizen Involvement in Campaigns Act 
of 2002''.

SEC. 2. TAX CREDIT FOR CERTAIN POLITICAL CONTRIBUTIONS.

    (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 25B the 
following new section:

``SEC. 25C. CREDIT FOR POLITICAL CONTRIBUTIONS.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by this chapter for the 
taxable year an amount equal to all political contributions paid by the 
taxpayer during the taxable year.
    ``(b) Limitations.--
            ``(1) Maximum credit.--The credit allowed by subsection (a) 
        shall not exceed $200 ($400 in the case of a joint return).
            ``(2) Verification.--The credit allowed by subsection (a) 
        shall be allowed with respect to any political contribution 
        only if such contribution is verified in such manner as the 
        Secretary shall prescribe by regulation.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Political contribution.--The term `political 
        contribution' means a contribution or gift of money, or the 
        fair market value of a contribution or gift of property, to--
                    ``(A) an individual who is a candidate for 
                nomination or election to any Federal elective public 
                office in any primary, general, or special election, 
                for use by such individual to further the candidacy of 
                the individual for nomination or election to such 
                office, or
                    ``(B) the national committee of a national 
                political party.
            ``(2) Candidate.--The term `candidate' means, with respect 
        to any Federal elective public office, an individual who--
                    ``(A) publicly announces before the close of the 
                calendar year following the calendar year in which the 
                political contribution is made that the individual is a 
                candidate for nomination or election to such office; 
                and
                    ``(B) meets the qualifications prescribed by law to 
                hold such office.
            ``(3) National political party.--The term `national 
        political party' means--
                    ``(A) in the case of political contributions made 
                during a taxable year of the taxpayer in which the 
                electors of President and Vice President are chosen, a 
                political party presenting candidates or electors for 
                such offices on the official election ballot of ten or 
                more States; or
                    ``(B) in the case of political contributions made 
                during any other taxable year of the taxpayer, a 
                political party which met the qualifications described 
                in subparagraph (A) in the last preceding election of a 
                President and Vice President.
    ``(d) Denial of Double Benefit.--No deduction shall be allowed 
under this chapter for any amount taken into account in determining the 
credit allowed under this section.
    ``(e) Cross References.--

                                ``For transfer of appreciated property 
to a political organization, see section 84.
                                ``For certain indirect contributions to 
political parties, see section 276.''.
    (b) Conforming Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such Code (relating to 
nonrefundable personal credits) is amended by inserting after the item 
relating to section 25B the following new item:

                              ``Sec. 25C. Credit for political 
                                        contributions.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31 of the calendar year 
in which this Act is enacted.

SEC. 3. DEDUCTION FOR CERTAIN POLITICAL CONTRIBUTIONS.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by redesignating section 223 
as section 224 and by inserting after section 222 the following new 
section:

``SEC. 223. POLITICAL CONTRIBUTIONS.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a deduction for the taxable year an amount equal to the 
qualified political contributions made by the taxpayer during the 
taxable year.
    ``(b) Limitation.--The amount allowed as a deduction under 
subsection (a) for the taxable year shall not exceed $600 ($1200 in the 
case of a joint return).
    ``(c) Qualified Political Contribution.--For purposes of this 
section, the term `qualified political contribution' shall have the 
meaning given the term `political contribution' by section 
25C(c)(1).''.
    (b) Deduction Allowed Whether or Not Taxpayer Itemizes Other 
Deductions.--Subsection (a) of section 62 of such Code is amended by 
inserting after paragraph (18) the following new item:
            ``(19) Qualified political contributions.--The deduction 
        allowed by section 223.''.
    (c) Clerical Amendment.--The table of sections for part VII of 
subchapter B of chapter 1 of such Code is amended by striking the last 
item and inserting the following new items:

                              ``Sec. 223. Political contributions.
                              ``Sec. 224. Cross reference.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31 of the calendar year 
in which this Act is enacted.