I

103D CONGRESS

2D SESSION H. R. 4356

To amend the Internal Revenue Code of 1986 to allow individuals who

do not itemize their deductions a deduction for a portion of their charitable contributions, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MAY 5, 1994

Mr. HUFFINGTON (for himself, Mr. GINGRICH, Mr. LEACH, Mr. WALKER, Mr.

NEAL of North Carolina, Mr. HERGER, Mr. EVERETT, Mr. CRAPO, Mr.

POMBO, Mr. HORN, Mr. INHOFE, Mr. BOEHNER, Mr. CUNNINGHAM, Mr.

LINDER, Mr. GRAMS, Mr. WALSH, Mr. JACOBS, Mr. TALENT, Mr. BAKER

of California, Mr. STEARNS, Mr. HOEKSTRA, Mr. CANADY, Mr. COX, Mr.

DIAZ-BALART, Mr. MCKEON, Mr. DOOLEY, Mr. FRANKS of New Jersey,

Mrs. VUCANOVICH, Mrs. FOWLER, Mr. GUNDERSON, Mr. HOKE, Mr.

MCHALE, Mr. PORTMAN, Mr. SUNDQUIST, Mr. TORKILDSEN, Mr. DICKEY, and Mr. HUTCHINSON) 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 allow individuals who do not itemize their deductions a deduction

for a portion of their charitable contributions, and for

other purposes.

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

2 This Act may be cited as the ‘‘Charitable Contribu3 tions Encouragement Act of 1994’’.

4 SEC. 2. DEDUCTION FOR PORTION OF CHARITABLE CON5 TRIBUTIONS TO BE ALLOWED FOR INDIVID6 UALS WHO DO NOT ITEMIZE DEDUCTIONS.

7 (a) IN GENERAL.—Section 170 of the Internal Reve8 nue Code of 1986 (relating to charitable, etc., contribu9 tions and gifts) is amended by redesignating subsection

10 (m) as subsection (n) and by inserting after subsection

11 (l) the following new subsection:

12 ‘‘(m) DEDUCTION FOR INDIVIDUALS NOT ITEMIZING

13 DEDUCTIONS.—In the case of an individual who does not

14 itemize his deductions for the taxable year, the amount

15 allowable under subsection (a) for the taxable year shall

16 be taken into account as a direct charitable deduction

17 under section 63 to the extent such amount exceeds an

18 amount equal to 5 percent of the basic standard deduction

19 (as defined in section 63(c)) of the taxpayer for such tax20 able year.’’

21 (b) DIRECT CHARITABLE DEDUCTION.—

22 (1) IN GENERAL.—Subsection (b) of section 63

23 of such Code is amended by striking ‘‘and’’ at the

24 end of paragraph (1), by striking the period at the

25 end of paragraph (2) and inserting ‘‘, and’’, and by
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1 adding at the end thereof the following new para2 graph:

3 ‘‘(3) the direct charitable deduction.’’

4 (2) DEFINITION.—Section 63 of such Code is

5 amended by redesignating subsection (g) as sub6 section (h) and by inserting after subsection (f) the

7 following new subsection:

8 ‘‘(g) DIRECT CHARITABLE DEDUCTION.—For pur9 poses of this section, the term ‘direct charitable deduction’

10 means that portion of the amount allowable under section

11 170(a) which is taken as a direct charitable deduction for

12 the taxable year under section 170(m).’’

13 (3) CONFORMING AMENDMENT.—Subsection (d)

14 of section 63 of such Code is amended by striking

15 ‘‘and’’ at the end of paragraph (1), by striking the

16 period at the end of paragraph (2) and inserting ‘‘,

17 and’’, and by adding at the end thereof the following

18 new paragraph:

19 ‘‘(3) the direct charitable deduction.’’

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

21 this section shall apply to taxable years beginning after

22 December 31, 1994.
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1 SEC. 3. CHARITABLE CONTRIBUTION DEDUCTION NOT SUB2 JECT TO OVERALL LIMITATION ON ITEMIZED

3 DEDUCTIONS.

4 (a) IN GENERAL.—Subsection (c) of section 68 of the

5 Internal Revenue Code of 1986 (relating to overall limita6 tion on itemized deductions) is amended by striking ‘‘and’’

7 at the end of paragraph (2), by striking the period at the

8 end of paragraph (3) and inserting ‘‘, and’’, and by adding

9 at the end thereof the following new paragraph:

10 ‘‘(4) the deduction under section 170 (relating

11 to charitable, etc., contributions and gifts).’’

12 (b) EFFECTIVE DATE.—The amendment made by

13 subsection (a) shall apply to taxable years beginning after

14 December 31, 1994.

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