To amend the Internal Revenue Code of 1986 to provide a credit for charitable contributions to fight poverty.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tax Credit for Charitable 
Contributions Act of 2003''.

SEC. 2. CREDIT FOR CHARITABLE CONTRIBUTIONS TO CERTAIN PRIVATE 
              CHARITIES PROVIDING ASSISTANCE TO THE POOR.

    (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 CERTAIN CHARITABLE 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 the qualified charitable contributions 
which are paid by the taxpayer during the taxable year.
    ``(b) Limitation.--The credit allowed by subsection (a) for the 
taxable year shall not exceed $100 (twice such amount in the case of a 
joint return).
    ``(c) Qualified Charitable Contribution.--For purposes of this 
section, the term `qualified charitable contribution' means any 
charitable contribution (as defined in section 170(c)) made in cash to 
a qualified charity but only if the amount of each such contribution, 
and the recipient thereof, are identified on the return for the taxable 
year during which such contribution is made.
    ``(d) Qualified Charity.--
            ``(1) In general.--For purposes of this section, the term 
        `qualified charity' means, with respect to the taxpayer, any 
        organization described in section 501(c)(3) and exempt from tax 
        under section 501(a)--
                    ``(A) which is certified by the Secretary as 
                meeting the requirements of paragraphs (2) and (3),
                    ``(B) which is organized under the laws of the 
                United States or of any State in which the organization 
                is qualified to operate, and
                    ``(C) which is required, or elects to be treated as 
                being required, to file returns under section 6033.
            ``(2) Charity must primarily assist the poor.--An 
        organization meets the requirements of this paragraph only if 
        the predominant activity of such organization is the provision 
        of services to individuals whose annual incomes generally do 
        not exceed 150 percent of the official poverty line (as defined 
        by the Office of Management and Budget).
            ``(3) Minimum expenditure requirement.--
                    ``(A) In general.--An organization meets the 
                requirements of this paragraph only if the Secretary 
                reasonably expects that the annual exempt purpose 
                expenditures of such organization will not be less than 
                70 percent of the annual aggregate expenditures of such 
                organization.
                    ``(B) Exempt purpose expenditure.--For purposes of 
                subparagraph (A)--
                            ``(i) In general.--The term `exempt purpose 
                        expenditure' means any expenditure to carry out 
                        the activity referred to in paragraph (2).
                            ``(ii) Exceptions.--Such term shall not 
                        include--
                                    ``(I) any administrative expense,
                                    ``(II) any expense for the purpose 
                                of influencing legislation (as defined 
                                in section 4911(d)),
                                    ``(III) any expense primarily for 
                                the purpose of fundraising, and
                                    ``(IV) any expense for litigation 
                                on behalf of any individual referred to 
                                in paragraph (2).
    ``(e) Time When Contributions Deemed Made.--For purposes of this 
section, at the election of the taxpayer, a contribution which is made 
not later than the time prescribed by law for filing the return for the 
taxable year (not including extensions thereof) shall be treated as 
made on the last day of such taxable year.
    ``(f) Coordination With Deduction for Charitable Contributions.--
            ``(1) Credit in lieu of deduction.--The credit provided by 
        subsection (a) for any qualified charitable contribution shall 
        be in lieu of any deduction otherwise allowable under this 
        chapter for such contribution.
            ``(2) Election to have section not apply.--A taxpayer may 
        elect for any taxable year to have this section not apply.
    ``(g) Maximum Amount of Credit Adjusted for Inflation.--In the case 
of any taxable year beginning in a calendar year after 2003, the $100 
amount contained in subsection (b) shall be increased by an amount 
equal to--
            ``(1) such dollar amount, multiplied by
            ``(2) the cost-of-living adjustment determined under 
        section 1(f)(3) for the calendar year in which the taxable year 
        begins, determined by substituting `calendar year 2002' for 
        `calendar year 1992' in subparagraph (B) thereof.
Any increase determined under the preceding sentence shall be rounded 
to the nearest multiple of $5.''
    (b) Clerical Amendment.--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 25B the following new 
item:

                              ``Sec. 25C. Credit for certain charitable 
                                        contributions.''
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions made after the 90th day after the date of the 
enactment of this Act in taxable years ending after such date.

Summary: Tax Credit for Charitable Contributions Act of 2003 - Amends the Internal Revenue Code to allow a taxpayer to elect a credit of up to $100 for cash contributions to a qualifying charity whose primary activity is assistance to the poor.