I

103D CONGRESS

1ST SESSION H. R. 554

To amend the Internal Revenue Code of 1986 to allow individuals a deduction

of up to $100 for contributions made to candidates for public office.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 21, 1993

Mr. UPTON 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 a deduction of up to $100 for contributions made

to candidates for public office.

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

3 SECTION 1. ALLOWANCE OF DEDUCTION.

4 (a) DEDUCTION FOR POLITICAL CONTRIBUTIONS.—

5 (1) GENERAL RULE.—Part VII of subchapter B

6 of chapter 1 of the Internal Revenue Code of 1986

7 is amended by inserting after section 217 the follow8 ing:
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1 ‘‘SEC. 218. CONTRIBUTIONS TO CANDIDATES FOR PUBLIC

2 OFFICE.

3 ‘‘(a) ALLOWANCE OF DEDUCTION.—In the case of an

4 individual, there shall be allowed as a deduction any politi5 cal contribution payment of which is made by such individ6 ual within the taxable year.

7 ‘‘(b) LIMITATIONS.—

8 ‘‘(1) AMOUNT.—The deduction under sub9 section (a) shall not exceed $100 ($200) in the case

10 of a joint return under section 6013).

11 ‘‘(2) VERIFICATION.—The deduction under sub12 section (a) shall be allowed, with respect to any po13 litical contribution, only if such contribution is veri14 fied in such manner as the Secretary shall prescribe

15 by regulations.

16 ‘‘(c) DEFINITIONS.—For purposes of this section, the

17 term—

18 ‘‘(1) ‘candidate’ means, with respect to any

19 Federal, State, or local elective public office, an indi20 vidual who

21 ‘‘(A) publicly announces before the close of

22 the calendar year following the calendar year in

23 which the contribution or gift is made that he

24 is a candidate for nomination or election to

25 such office; and
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1 ‘‘(B) meets the qualifications prescribed by

2 law to hold such office.

3 ‘‘(2) ‘local’ means a political subdivision or part

4 thereof, or 2 or more political subdivisions or parts

5 thereof, of a State;

6 ‘‘(3) ‘national political party’ means—

7 ‘‘(A) in the case of contributions made

8 during a taxable year of the taxpayer in which

9 the electors of President and Vice President are

10 chosen, a political party presenting candidates

11 or electors for such offices on the official elec12 tion ballot of 10 or more States, or

13 ‘‘(B) in the case of contributions made

14 during any other taxable year of the taxpayer,

15 a political party which met the qualifications

16 described in subparagraph (A) in the last pre17 ceding election of a President and Vice Presi18 dent;

19 ‘‘(4) ‘political contribution’ means a contribu20 tion or gift of money to—

21 ‘‘(A) an individual who is a candidate for

22 nomination or election to any Federal, State, or

23 local elective office in any primary, general, or

24 special election, for use by such individual to
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1 further his candidacy for nomination or election

2 to such office;

3 ‘‘(B) any committee, association, or organi4 zation (whether or not incorporated) organized

5 and operated exclusively for the purpose of in6 fluencing, or attempting to influence, the nomi7 nation or election of one or more individuals

8 who are candidates for nomination or election

9 to any Federal, State, or local elective public of10 fice, for use by such committee, association, or

11 organization to further the candidacy of such

12 individual or individuals for nomination or elec13 tion to such office;

14 ‘‘(C) the national committee of a national

15 political party;

16 ‘‘(D) the State committee of a national po17 litical party as designated by the national com18 mittee of such party; or

19 ‘‘(E) a local committee or a national politi20 cal party as designated by the State committee

21 of such party designated under subparagraph

22 (D); and

23 ‘‘(5) ‘State’ means the various States and the

24 District of Columbia.
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1 ‘‘(d) CROSS REFERENCE.—

‘‘For disallowance of deduction to estates and

trusts, see section 642(j).’’

2 (2) CONFORMING AMENDMENT.—The table of

3 sections for part VII of subchapter B of chapter 1

4 of such Code is amended by inserting after the item

5 relating to section 217 the following:

‘‘Sec. 218. Contribution to candidates for public office.’’

6 (b) DISALLOWANCE OF DEDUCTION TO ESTATES

7 AND TRUSTS.—Section 642 of such Code is amended by

8 adding at the end the following:

9 ‘‘(j) POLITICAL CONTRIBUTIONS.—An estate or trust

10 shall not be allowed the deduction for contributions to can11 didates for public office provided by section 218.’’

12 SEC. 2. EFFECTIVE DATE.

13 The amendments made by section 1 shall apply to

14 taxable years beginning after December 31, 1993.

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