39–006 

113TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 113–495 

CHARITABLE GIVING EXTENSION ACT 

JUNE 26, 2014.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. CAMP, from the Committee on Ways and Means, 

submitted the following 

R E P O R T 

together with 

DISSENTING VIEWS 

[To accompany H.R. 3134] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Ways and Means, to whom was referred the 

bill (H.R. 3134) to amend the Internal Revenue Code of 1986 to 

allow charitable contributions made by an individual after the close 

of the taxable year, but before the tax return due date, to be treated as made in such taxable year, having considered the same, report favorably thereon with an amendment and recommend that 

the bill as amended do pass. 

CONTENTS 

Page 

I. SUMMARY AND BACKGROUND ............................................................... 2 

A. Purpose and Summary ..................................................................... 2 

B. Background and Need for Legislation ............................................. 2 

C. Legislative History ............................................................................ 3 

II. EXPLANATION OF THE BILL ................................................................... 3 

A. Extension of Time for Making Charitable Contributions (sec. 

170 of the Code) .............................................................................. 3 

III. VOTES OF THE COMMITTEE .................................................................... 4 

IV. BUDGET EFFECTS OF THE BILL ............................................................ 5 

A. Committee Estimate of Budgetary Effects ...................................... 5 

B. Statement Regarding New Budget Authority and Tax Expenditures Budget Authority .................................................................. 5 

C. Cost Estimate Prepared by the Congressional Budget Office ....... 5 

D. Macroeconomic Impact Analysis ...................................................... 6 

V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF 

THE HOUSE .............................................................................................. 6 


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A. Committee Oversight Findings and Recommendations ................. 6 

B. Statement of General Performance Goals and Objectives ............. 7 

C. Information Relating to Unfunded Mandates ................................ 7 

D. Applicability of House Rule XXI 5(b) .............................................. 7 

E. Tax Complexity Analysis .................................................................. 7 

F. Congressional Earmarks, Limited Tax Benefits, and Limited 

Tariff Benefits ................................................................................. 7 

G. Duplication of Federal Programs ..................................................... 8 

H. Disclosure of Directed Rule Makings .............................................. 8 

VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED 8 

VII. DISSENTING VIEWS ................................................................................... 10 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Charitable Giving Extension Act’’. 

SEC. 2. EXTENSION OF TIME FOR MAKING CHARITABLE CONTRIBUTIONS. 

(a) IN GENERAL.—Subsection (a) of section 170 of the Internal Revenue Code of 

1986 is amended by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), 

respectively, and by inserting after paragraph (1) the following new paragraph: 

‘‘(2) TREATMENT OF CHARITABLE CONTRIBUTIONS MADE BY INDIVIDUALS BEFORE

DUE DATE OF RETURN.—If any charitable contribution is made by an individual 

after the close of a taxable year but not later than the due date (determined 

without regard to extensions) for the return of tax for such taxable year, then 

the taxpayer may elect to treat such charitable contribution as made in such 

taxable year. Such election shall be made at such time and in such manner as 

the Secretary may provide.’’. 

(b) EFFECTIVE DATE.—The amendments made by this section shall apply to elections made with respect to taxable years beginning after December 31, 2013. 

I. SUMMARY AND BACKGROUND 

A. PURPOSE AND SUMMARY

Similar to a provision contained in the discussion draft of the 

‘‘Tax Reform Act of 2014’’ released on February 26, 2014, the bill, 

H.R. 3134, reported by the Committee on Ways and Means, provides that individual taxpayers may deduct charitable contributions made after the close of the taxable year but before the due 

date of the return (April 15 for most individuals) for the taxable 

year covered by the return. 

B. BACKGROUND AND NEED FOR LEGISLATION

While the Committee continues actively to pursue comprehensive 

tax reform as a critical means of promoting economic growth and 

job creation, the Committee also believes that it is important to 

provide individuals and small businesses permanent, immediate 

tax relief to encourage faster economic growth and job creation, 

while fostering charitable giving. Enabling individuals to take charitable deductions in a particular taxable year through the due date 

for that return (April 15 of the following year for individual taxpayers) is expected to increase charitable giving because many individuals will decide to give more generously at the time they are actually preparing and finalizing their returns. According to testimony received by the Committee, allowing donors to deduct gifts 

until the filing of a tax return, or April 15, would result in significantly more charitable giving than the cost of the bill—each dollar 

of additional giving would only cost approximately 20 cents to 40 

cents in tax revenues. H.R. 3134, which is similar to a provision 

contained in the February 26, 2014, discussion draft of the ‘‘Tax 


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1 Sec. 170(a)(1). 

2 For example, the value of time spent volunteering for a charitable organization is not deductible. Incidental expenses such as mileage, supplies, or other expenses incurred while volunteering for a charitable organization, however, may be deductible. 

Reform Act of 2014,’’ would expand and simplify the tax rules governing deductible contributions and encourage individual charitable 

giving that supports the myriad tax-exempt organizations assisting 

individuals in need, local communities, and the nation overall. 

C. LEGISLATIVE HISTORY

Background 

H.R. 3134 was introduced on September 19, 2013, and was referred to the Committee on Ways and Means. 

Committee action 

The Committee on Ways and Means marked up H.R. 3134, the 

Charitable Giving Extension Act, on May 29, 2014, and ordered the 

bill, as amended, favorably reported (with a quorum being present). 

Committee hearings 

The need for permanent rules to allow charitable contributions 

made by an individual after the close of the taxable year, but before the tax return due date, to be treated as made in such taxable 

year was discussed at a full Committee hearing on Tax Reform and 

Charitable Contributions (February 14, 2013). 

II. EXPLANATION OF THE BILL 

A. EXTENSION OF TIME FOR MAKING CHARITABLE CONTRIBUTIONS

(SEC. 170 OF THE CODE) 

PRESENT LAW

The Internal Revenue Code allows taxpayers an income tax deduction for contributions to certain organizations, including charities, Federal, State, local and Indian tribal governments, and certain other organizations. 

To be deductible, a charitable contribution generally must meet 

several requirements. First, the recipient of the transfer must be 

eligible to receive charitable contributions (i.e., an organization or 

entity described in section 170(c)). Second, the transfer must be 

made with gratuitous intent and without the expectation of a benefit of substantial economic value in return. Third, the transfer 

must be complete and generally must be a transfer of a donor’s entire interest in the contributed property (i.e., not a contingent or 

partial interest contribution). To qualify for a current year charitable deduction, payment of the contribution must be made within 

the taxable year.1 Fourth, the transfer must be of money or property—contributions of services are not deductible.2 Finally, the 

transfer must be substantiated and in the proper form. 

A charitable deduction generally is claimed on the tax return 

that is filed for the year in which the contribution is made. The return generally is due by April 15 of the following year, with certain 

extensions being allowed. 


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REASONS FOR CHANGE

Enabling individuals to take charitable deductions in a particular 

tax year through the due date for that return (typically April 15 

of the following year) is expected to increase charitable giving, because many taxpayers will decide to give more generously at the 

time they are preparing and finalizing their returns. Therefore, the 

Committee believes it is appropriate to allow taxpayers to make 

charitable contributions for a year after the close of the year but 

before the due date for the return for the year (determined without 

regard to extensions). 

EXPLANATION OF PROVISION

The provision permits individuals to elect to deduct for a taxable 

year charitable contributions made after the close of that taxable 

year but not later than the due date (determined without regard 

to extensions) for the individual’s income tax return for that taxable year. Charitable contributions for which an election has been 

made may not be claimed as a deduction in any other taxable year. 

The election must be made at such time and in such manner as the 

Secretary provides. For example, if a calendar year individual 

makes a charitable contribution on February 15, 2015, the individual may elect to treat the contribution as having been made 

during 2014. The election must be made at the time of the filing 

of the 2014 income tax return in the manner prescribed by the Secretary. 

EFFECTIVE DATE

The provision applies to elections made with respect to taxable 

years beginning after December 31, 2013. 

III. VOTES OF THE COMMITTEE 

In compliance with clause 3(b) of rule XIII of the Rules of the 

House of Representatives, the following statement is made concerning the vote of the Committee on Ways and Means in its consideration of H.R. 3134, the Charitable Giving Extension Act, on 

May 29, 2014. 

The bill, H.R. 3134, was ordered favorably reported as amended 

by a roll call vote of 23 yeas to 12 nays (with a quorum being 

present). The vote was as follows: 

Representative Yea Nay Present Representative Yea Nay Present 

Mr. Camp .............................. X ........... ............. Mr. Levin .............................. ........... X .............

Mr. Johnson ........................... X ........... ............. Mr. Rangel ........................... ........... ........... .............

Mr. Brady .............................. X ........... ............. Mr. McDermott ..................... ........... X .............

Mr. Ryan ............................... X ........... ............. Mr. Lewis .............................. ........... ........... .............

Mr. Nunes ............................. X ........... ............. Mr. Neal ............................... ........... ........... .............

Mr. Tiberi .............................. X ........... ............. Mr. Becerra .......................... ........... X .............

Mr. Reichert .......................... X ........... ............. Mr. Doggett .......................... ........... X .............

Mr. Boustany ......................... X ........... ............. Mr. Thompson ...................... ........... X .............

Mr. Roskam ........................... X ........... ............. Mr. Larson ............................ ........... X .............

Mr. Gerlach ........................... X ........... ............. Mr. Blumenauer ................... ........... X .............

Mr. Price ............................... X ........... ............. Mr. Kind ............................... ........... X .............

Mr. Buchanan ....................... X ........... ............. Mr. Pascrell .......................... ........... X .............

Mr. Smith .............................. X ........... ............. Mr. Crowley .......................... ........... ........... .............

Mr. Schock ............................ X ........... ............. Ms. Schwartz ........................ ........... X .............

Ms. Jenkins ........................... X ........... ............. Mr. Davis .............................. ........... X .............

Mr. Paulsen ........................... X ........... ............. Ms. Sanchez ......................... ........... X .............


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Representative Yea Nay Present Representative Yea Nay Present 

Mr. Marchant ........................ X ........... ............. .

Ms. Black .............................. X ........... ............. .

Mr. Reed ............................... X ........... ............. .

Mr. Young ............................. X ........... ............. .

Mr. Kelly ................................ X ........... ............. .

Mr. Griffin ............................. X ........... ............. .

Mr. Renacci ........................... X ........... ............. .

IV. BUDGET EFFECTS OF THE BILL 

A. COMMITTEE ESTIMATE OF BUDGETARY EFFECTS

In compliance with clause 3(d) of rule XIII of the Rules of the 

House of Representatives, the following statement is made concerning the effects on the budget of the bill, H.R. 3134, as reported. 

The bill, as reported, is estimated to have the following effect on 

Federal budget receipts for fiscal years 2014–2024: 

FISCAL YEARS 

[Millions of Dollars] 

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014–19 2014–24 

– – – ¥2,195 ¥52 ¥80 ¥72 ¥71 ¥72 ¥70 ¥62 ¥76 ¥72 ¥2,470 ¥2,822 

B. STATEMENT REGARDING NEW BUDGET AUTHORITY AND TAX

EXPENDITURES BUDGET AUTHORITY

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee states that the bill involves no new or increased budget authority. The Committee further states that the revenue-reducing tax provisions involve increased tax expenditures. (See amounts in table in Part IV.A., 

above.) 

C. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET

OFFICE

In compliance with clause 3(c)(3) of rule XIII of the Rules of the 

House of Representatives, requiring a cost estimate prepared by 

the CBO, the following statement by CBO is provided. 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, June 5, 2014. 

Hon. DAVE CAMP, 

Chairman, Committee on Ways and Means, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN:The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 3134, the Charitable Giving Extension Act. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Logan Timmerhoff. 

Sincerely, 

DOUGLAS W. ELMENDORF. 

Enclosure. 


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H.R. 3134—Charitable Giving Extension Act 

H.R. 3134 would amend the Internal Revenue Code to permit individuals to deduct for a taxable year charitable contributions 

made after the close of that taxable year but generally not later 

than the subsequent April 15, the due date (determined without regard to extensions) for the individual’s income tax return for that 

taxable year. Under current law, a charitable deduction is generally claimed on the tax return for the year in which the contribution is made. Under H.R. 3134, if taxpayers elected to take such 

deductions for the taxable year before the contribution was made, 

they could not then deduct the same amounts again in the later 

year. 

The staff of the Joint Committee on Taxation (JCT) estimates 

that enacting H.R. 3134 would reduce revenues, thus increasing 

federal budget deficits, by about $2.8 billion over the 2014–2024 period. 

The Statutory Pay-As-You-Go Act of 2010 establishes budget-reporting and enforcement procedures for legislation affecting direct 

spending and revenues. Enacting H.R. 3134 would result in revenue losses in each year beginning in 2015. The estimated increases in the deficit are shown in the following table. 

JCT has determined that the bill contains no intergovernmental 

or private-sector mandates as defined in the Unfunded Mandates 

Reform Act. 

The CBO staff contact for this estimate is Logan Timmerhoff. 

The estimate was approved by David Weiner, Assistant Director for 

Tax Analysis. 

CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 3134, AS ORDERED REPORTED BY THE 

HOUSE COMMITTEE ON WAYS AND MEANS ON MAY 29, 2014 

by fiscal year, in millions of dollars— 

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014– 

2019 

2014– 

2024 

NET INCREASE IN THE DEFICIT 

Statutory Pay-As-You-Go Effects .................................... 0 2,195 52 80 72 71 72 70 62 76 72 2,470 2,822 

Source: Staff of the Joint Committee on Taxation. 

D. MACROECONOMIC IMPACT ANALYSIS

In compliance with clause 3(h)(2) of rule XIII of the Rules of the 

House of Representatives, the following statement is made by the 

Joint Committee on Taxation with respect to the provisions of the 

bill amending the Internal Revenue Code of 1986: the effects of the 

bill on economic activity are so small as to be incalculable within 

the context of a model of the aggregate economy. 

V. OTHER MATTERS TO BE DISCUSSED UNDER THE 

RULES OF THE HOUSE 

A. COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

With respect to clause 3(c)(1) of rule XIII of the Rules of the 

House of Representatives (relating to oversight findings), the Committee advises that it was as a result of the Committee’s review of 


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the provisions of H.R. 3134 that the Committee concluded that it 

is appropriate to report the bill, as amended, favorably to the 

House of Representatives with the recommendation that the bill do 

pass. 

B. STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

With respect to clause 3(c)(4) of rule XIII of the Rules of the 

House of Representatives, the Committee advises that the bill contains no measure that authorizes funding, so no statement of general performance goals and objectives for which any measure authorizes funding is required. 

C. INFORMATION RELATING TO UNFUNDED MANDATES

This information is provided in accordance with section 423 of 

the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104–4). 

The Committee has determined that the bill does not contain 

Federal mandates on the private sector. The Committee has determined that the bill does not impose a Federal intergovernmental 

mandate on State, local, or tribal governments. 

D. APPLICABILITY OF HOUSE RULE XXI 5(b) 

Rule XXI 5(b) of the Rules of the House of Representatives provides, in part, that ‘‘A bill or joint resolution, amendment, or conference report carrying a Federal income tax rate increase may not 

be considered as passed or agreed to unless so determined by a 

vote of not less than three-fifths of the Members voting, a quorum 

being present.’’ The Committee has carefully reviewed the bill, and 

states that the bill does not involve any Federal income tax rate 

increases within the meaning of the rule. 

E. TAX COMPLEXITY ANALYSIS

Section 4022(b) of the Internal Revenue Service Restructuring 

and Reform Act of 1998 (the ‘‘IRS Reform Act’’) requires the staff 

of the Joint Committee on Taxation (in consultation with the Internal Revenue Service and the Treasury Department) to provide a 

tax complexity analysis. The complexity analysis is required for all 

legislation reported by the Senate Committee on Finance, the 

House Committee on Ways and Means, or any committee of conference if the legislation includes a provision that directly or indirectly amends the Internal Revenue Code and has widespread applicability to individuals or small businesses. 

Pursuant to clause 3(h)(1) of rule XIII of the Rules of the House 

of Representatives, the staff of the Joint Committee on Taxation 

has determined that a complexity analysis is not required under 

section 4022(b) of the IRS Reform Act because the bill contains no 

provisions that amend the Code and that have ‘‘widespread applicability’’ to individuals or small businesses, within the meaning of 

the rule. 

F. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND

LIMITED TARIFF BENEFITS

With respect to clause 9 of rule XXI of the Rules of the House 

of Representatives, the Committee has carefully reviewed the proVerDate Mar 15 2010 06:02 Jul 01, 2014 Jkt 039006 PO 00000 Frm 00007 Fmt 6659 Sfmt 6602 E:\HR\OC\HR495.XXX HR495

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visions of the bill, and states that the provisions of the bill do not 

contain any congressional earmarks, limited tax benefits, or limited 

tariff benefits within the meaning of the rule. 

G. DUPLICATION OF FEDERAL PROGRAMS

In compliance with Sec. 3(j)(2) of H. Res. 5 (113th Congress), the 

Committee states that no provision of the bill establishes or reauthorizes: (1) a program of the Federal Government known to be duplicative of another Federal program, (2) a program included in any 

report from the Government Accountability Office to Congress pursuant to section 21 of Public Law 111–139, or (3) a program related 

to a program identified in the most recent Catalog of Federal Domestic Assistance, published pursuant to the Federal Program Information Act (Public Law 95–220, as amended by Public Law 98– 

169). 

H. DISCLOSURE OF DIRECTED RULE MAKINGS

In compliance with Sec. 3(k) of H. Res. 5 (113th Congress), the 

following statement is made concerning directed rule makings: The 

Committee estimates that the bill requires no directed rule makings within the meaning of such section. 

VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS 

REPORTED 

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

existing law in which no change is proposed is shown in roman): 

SECTION 170 OF THE INTERNAL REVENUE CODE OF 1986 

SEC. 170. CHARITABLE, ETC., CONTRIBUTIONS AND GIFTS. 

(a) ALLOWANCE OF DEDUCTION.— 

(1) * * * 

(2) TREATMENT OF CHARITABLE CONTRIBUTIONS MADE BY INDIVIDUALS BEFORE DUE DATE OF RETURN.—If any charitable 

contribution is made by an individual after the close of a taxable year but not later than the due date (determined without 

regard to extensions) for the return of tax for such taxable year, 

then the taxpayer may elect to treat such charitable contribution 

as made in such taxable year. Such election shall be made at 

such time and in such manner as the Secretary may provide. 

ø(2)¿ (3) CORPORATIONS ON ACCRUAL BASIS.—In the case of 

a corporation reporting its taxable income on the accrual basis, 

if— 

(A) * * * 

* * * * * * * 

ø(3)¿ (4) FUTURE INTERESTS IN TANGIBLE PERSONAL PROPERTY.—For purposes of this section, payment of a charitable 

contribution which consists of a future interest in tangible personal property shall be treated as made only when all intervening interests in, and rights to the actual possession or enjoyment of, the property have expired or are held by persons 


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other than the taxpayer or those standing in a relationship to 

the taxpayer described in section 267(b) or 707(b). For purposes of the preceding sentence, a fixture which is intended to 

be severed from the real property shall be treated as tangible 

personal property. 

* * * * * * * 


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VII. DISSENTING VIEWS 

The six bills approved by the Republicans at the markup would 

add $304 billion to the deficit. Combined with the $310 billion that 

the six bills approved by Republicans on the Committee in April 

added to the deficit, Republicans have added $614 billion to the 

deficit in two short months—and there does not appear to be an 

end in sight. Even though some of these bills were introduced individually with some bipartisan support, the opposition to these bills 

was based on the position that these tax provisions should not be 

made permanent by adding to the deficit without any revenue offset. 

To put the combined cost ($614 billion) into context, it is 25 percent more than the entire projected federal deficit this year and 

$86 billion more than total non-defense domestic discretionary 

spending (e.g., medical research, education, veterans’ pensions and 

health care, transportation, etc.) will be in 2014. It is almost seven 

times what we spend annually on education, job training, and social services. It is ten times more than we spend on veterans. And, 

it is eleven times more than we spend on medical research and 

public health. 

More specifically, we opposed H.R. 3134 because it would add administrative hurdles to an already burdened tax filing system. One 

such administrative challenge relates to keeping accurate records 

of when a taxpayer has claimed a deduction with respect to a charitable contribution made between January 1 and April 15. For example, a calendar year taxpayer making a charitable contribution 

on March 1, 2015 could claim a deduction with respect to that contribution on the 2014 return or on the 2015 return. And it is entirely possible that the taxpayer could inadvertently claim a deduction twice with respect to the same charitable contribution made 

during that ‘‘extended’’ time period. Further, there is no concrete 

evidence that taxpayers are more likely to donate to charities because of the proposed time extension (or less likely to donate absent such time extension) for tax deduction purposes. 

We also opposed H.R. 3134 because this bill was not the subject 

of a hearing by the Committee to debate the merits of this specific 

policy. This bill would introduce a new tax policy and should have 

been the subject of debate and consideration in the Committee before being brought to a vote. 


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The consideration of this bill should be part of comprehensive tax 

reform. It should not take priority over other reforms for the charitable sector. 

Sincerely, 

SANDER M. LEVIN, Ranking Member. 

Æ 


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