I 

108TH CONGRESS 

1ST SESSION H. R. 1672

To amend the Internal Revenue Code of 1986 to provide a credit for 

charitable contributions to fight poverty. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 8, 2003

Mr. KOLBE (for himself and Mr. KNOLLENBERG) introduced the following bill; 

which was referred to the Committee on Ways and Means 

A BILL

To amend the Internal Revenue Code of 1986 to provide 

a credit for charitable contributions to fight poverty.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Tax Credit for Chari5 table Contributions Act of 2003’’.

6 SEC. 2. CREDIT FOR CHARITABLE CONTRIBUTIONS TO CER7 TAIN PRIVATE CHARITIES PROVIDING AS8 SISTANCE TO THE POOR. 

9 (a) IN GENERAL.—Subpart A of part IV of sub10 chapter A of chapter 1 of the Internal Revenue Code of 
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1 1986 (relating to nonrefundable personal credits) is 

2 amended by inserting after section 25B the following new 

3 section: 

4 ‘‘SEC. 25C. CREDIT FOR CERTAIN CHARITABLE CONTRIBU5 TIONS. 

6 ‘‘(a) IN GENERAL.—In the case of an individual, 

7 there shall be allowed as a credit against the tax imposed 

8 by this chapter for the taxable year an amount equal to 

9 the qualified charitable contributions which are paid by 

10 the taxpayer during the taxable year. 

11 ‘‘(b) LIMITATION.—The credit allowed by subsection 

12 (a) for the taxable year shall not exceed $100 (twice such 

13 amount in the case of a joint return). 

14 ‘‘(c) QUALIFIED CHARITABLE CONTRIBUTION.—For 

15 purposes of this section, the term ‘qualified charitable con16 tribution’ means any charitable contribution (as defined 

17 in section 170(c)) made in cash to a qualified charity but 

18 only if the amount of each such contribution, and the re19 cipient thereof, are identified on the return for the taxable 

20 year during which such contribution is made. 

21 ‘‘(d) QUALIFIED CHARITY.—

22 ‘‘(1) IN GENERAL.—For purposes of this sec23 tion, the term ‘qualified charity’ means, with respect 

24 to the taxpayer, any organization described in sec-
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1 tion 501(c)(3) and exempt from tax under section 

2 501(a)—

3 ‘‘(A) which is certified by the Secretary as 

4 meeting the requirements of paragraphs (2) 

5 and (3), 

6 ‘‘(B) which is organized under the laws of 

7 the United States or of any State in which the 

8 organization is qualified to operate, and 

9 ‘‘(C) which is required, or elects to be 

10 treated as being required, to file returns under 

11 section 6033. 

12 ‘‘(2) CHARITY MUST PRIMARILY ASSIST THE

13 POOR.—An organization meets the requirements of 

14 this paragraph only if the predominant activity of 

15 such organization is the provision of services to indi16 viduals whose annual incomes generally do not ex17 ceed 150 percent of the official poverty line (as de18 fined by the Office of Management and Budget). 

19 ‘‘(3) MINIMUM EXPENDITURE REQUIREMENT.—

20 ‘‘(A) IN GENERAL.—An organization meets 

21 the requirements of this paragraph only if the 

22 Secretary reasonably expects that the annual 

23 exempt purpose expenditures of such organiza24 tion will not be less than 70 percent of the an-
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1 nual aggregate expenditures of such organiza2 tion. 

3 ‘‘(B) EXEMPT PURPOSE EXPENDITURE.—

4 For purposes of subparagraph (A)—

5 ‘‘(i) IN GENERAL.—The term ‘exempt 

6 purpose expenditure’ means any expendi7 ture to carry out the activity referred to in 

8 paragraph (2). 

9 ‘‘(ii) EXCEPTIONS.—Such term shall 

10 not include—

11 ‘‘(I) any administrative expense, 

12 ‘‘(II) any expense for the purpose 

13 of influencing legislation (as defined 

14 in section 4911(d)), 

15 ‘‘(III) any expense primarily for 

16 the purpose of fundraising, and 

17 ‘‘(IV) any expense for litigation 

18 on behalf of any individual referred to 

19 in paragraph (2). 

20 ‘‘(e) TIME WHEN CONTRIBUTIONS DEEMED

21 MADE.—For purposes of this section, at the election of 

22 the taxpayer, a contribution which is made not later than 

23 the time prescribed by law for filing the return for the 

24 taxable year (not including extensions thereof) shall be 

25 treated as made on the last day of such taxable year. 
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1 ‘‘(f) COORDINATION WITH DEDUCTION FOR CHARI2 TABLE CONTRIBUTIONS.—

3 ‘‘(1) CREDIT IN LIEU OF DEDUCTION.—The 

4 credit provided by subsection (a) for any qualified 

5 charitable contribution shall be in lieu of any deduc6 tion otherwise allowable under this chapter for such 

7 contribution. 

8 ‘‘(2) ELECTION TO HAVE SECTION NOT

9 APPLY.—A taxpayer may elect for any taxable year 

10 to have this section not apply. 

11 ‘‘(g) MAXIMUM AMOUNT OF CREDIT ADJUSTED FOR

12 INFLATION.—In the case of any taxable year beginning 

13 in a calendar year after 2003, the $100 amount contained 

14 in subsection (b) shall be increased by an amount equal 

15 to—

16 ‘‘(1) such dollar amount, multiplied by 

17 ‘‘(2) the cost-of-living adjustment determined 

18 under section 1(f)(3) for the calendar year in which 

19 the taxable year begins, determined by substituting 

20 ‘calendar year 2002’ for ‘calendar year 1992’ in sub21 paragraph (B) thereof. 

22 Any increase determined under the preceding sentence 

23 shall be rounded to the nearest multiple of $5.’’

24 (b) CLERICAL AMENDMENT.—The table of sections 

25 for subpart A of part IV of subchapter A of chapter 1 
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1 of such Code is amended by inserting after the item relat2 ing to section 25B the following new item:

‘‘Sec. 25C. Credit for certain charitable contributions.’’

3 (c) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to contributions made after the 

5 90th day after the date of the enactment of this Act in 

6 taxable years ending after such date.

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