I

103D CONGRESS

2D SESSION H. R. 4899

To amend the Internal Revenue Code of 1986 to allow a credit for 100

percent of the contributions made by individuals to organizations engaged

in addressing the needs of at-risk youth and teenagers.

IN THE HOUSE OF REPRESENTATIVES

AUGUST 4, 1994

Mr. FRANKS of Connecticut 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 a

credit for 100 percent of the contributions made by

individuals to organizations engaged in addressing the

needs of at-risk youth and teenagers.

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

3 SECTION 1. CREDIT FOR CONTRIBUTIONS TO CERTAIN OR4 GANIZATIONS OPERATING FAMILY DEVELOP5 MENT PROGRAMS.

6 (a) GENERAL RULE.—Subpart A of part IV of sub7 chapter A of chapter 1 of the Internal Revenue Code of

8 1986 (relating to nonrefundable personal credits) is
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1 amended by inserting after section 22 the following new

2 section:

3 ‘‘SEC. 23. CONTRIBUTIONS FOR FAMILY DEVELOPMENT

4 PROGRAMS.

5 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in6 dividual, there shall be allowed as a credit against the tax

7 imposed by this chapter for the taxable year an amount

8 equal to 100 percent of the qualified family development

9 contributions made by the taxpayer during such taxable

10 year.

11 ‘‘(b) QUALIFIED FAMILY DEVELOPMENT CONTRIBU12 TION.—For purposes of this section, the term ‘qualified

13 family development contribution’ means any contribution

14 to a qualified organization if—

15 ‘‘(1) such contribution is in cash,

16 ‘‘(2) such contribution is to be used by the

17 qualified organization exclusively in its family devel18 opment program activities, and

19 ‘‘(3) the taxpayer receives from the qualified or20 ganization a written statement representing that its

21 use of such contribution will be in accordance with

22 the provisions of paragraph (2).

23 ‘‘(c) OTHER DEFINITIONS.—For purposes of this

24 section:
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1 ‘‘(1) QUALIFIED ORGANIZATION.—The term

2 ‘qualified organization’ means any organization de3 scribed in paragraph (2) of section 170(c) if—

4 ‘‘(A) such organization is operated pri5 marily for purposes of engaging in family devel6 opment program activities, and

7 ‘‘(B) during the calendar year in which the

8 taxpayer’s taxable year begins, such organiza9 tion did not receive any funds from the Federal

10 Government or under any State or local pro11 gram funded in whole or in part by the Federal

12 Government.

13 ‘‘(2) FAMILY DEVELOPMENT PROGRAM ACTIVI14 TIES.—The term ‘family development program ac15 tivities’ means community-based activities to foster

16 positive growth of at-risk youth age 18 and under.

17 Such term includes child care services, health care

18 services, tutorial programs, pre-school and after19 school services, mentoring programs, job-training

20 services, juvenile and adolescent recreational pro21 grams, family counseling and crisis intervention

22 services, and substance abuse services.

23 ‘‘(d) DENIAL OF DOUBLE BENEFIT.—No deduction

24 shall be allowed under section 170 for any qualified family
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1 development contribution taken into account under this

2 section.’’

3 (b) REPORTING REQUIREMENTS.—

4 (1) IN GENERAL.—Subpart B of part III of

5 subchapter A of chapter 61 of such Code is amended

6 by adding at the end the following new section:

7 ‘‘SEC. 6050Q. RETURNS RELATING TO QUALIFIED FAMILY

8 DEVELOPMENT CONTRIBUTIONS.

9 ‘‘(a) IN GENERAL.—Every organization which during

10 any calendar year receives qualified family development

11 contributions shall make a return according to the forms

12 or regulations prescribed by the Secretary setting forth—

13 ‘‘(1) the name, address, and TIN of each per14 son making such contributions, and

15 ‘‘(2) the amount of such contributions made by

16 each such person.

17 ‘‘(b) STATEMENTS FURNISHED TO CONTRIBU18 TIONS.—Every organization required to make a return

19 under subsection (a) shall furnish to each person whose

20 name is required to be set forth in such return a written

21 statement showing—

22 ‘‘(1) the name and address of the organization

23 making the return, and

24 ‘‘(2) the aggregate amount of the qualified fam25 ily development contributions made by such person.
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1 The written statement required under the preceding sen2 tence shall be furnished to the person on or before Janu3 ary 31 of the year following the calendar year for which

4 the return under subsection (a) was made.

5 ‘‘(c) QUALIFIED FAMILY DEVELOPMENT CONTRIBU6 TION.—For purposes of this section, the term ‘qualified

7 family development contribution’ has the meaning given

8 such term by section 23(b).’’

9 (2) PENALTIES.—

10 (A) Subparagraph (B) of section

11 6724(d)(1) of such Code is amended by insert12 ing after clause (viii) the following new clause

13 (and by redesignating the following clauses ac14 cordingly):

15 ‘‘(ix) section 6050Q (relating to re16 turns relating to qualified family develop17 ment contributions),’’

18 (B) Paragraph (2) of section 6724(d) of

19 such Code is amended by inserting after sub20 paragraph (P) the following new subparagraph

21 (and by redesignating the following subpara22 graphs accordingly):

23 ‘‘(Q) section 6050Q(b) (relating to returns

24 relating to qualified family development con25 tributions),’’
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1 (c) CLERICAL AMENDMENTS.—

2 (1) The table of sections for subpart A of part

3 IV of subchapter A of chapter 1 of such Code is

4 amended by inserting after the item relating to sec5 tion 22 the following new section:

‘‘Sec. 23. Contributions for family development programs.’’

6 (2) The table of sections for subpart B of part

7 III of subchapter A of chapter 61 of such Code is

8 amended by adding at the end the following new

9 item:

‘‘Sec. 6050Q. Returns relating to qualified family development

contributions.’’

10 (d) EFFECTIVE DATE.—The amendments made by

11 this section shall apply to contributions made after the

12 date of the enactment of this Act.

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