I

104TH CONGRESS

1ST SESSION H. R. 1575

To amend the Internal Revenue Code of 1986 to increase the amount of

the charitable contribution deduction, to allow such deduction to individuals who do not itemize other deductions, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MAY 3, 1995

Mr. SOUDER (for himself, Mr. BRYANT of Tennessee, Mr. BARTLETT of Maryland, Mrs. CHENOWETH, Mr. COBURN, Mr. COOLEY, Mr. DORNAN, Mr.

ENGLISH of Pennsylvania, Mr. GALLEGLY, Mr. GILMAN, Mr. GRAHAM,

Mr. HUTCHINSON, Mr. INGLIS of South Carolina, Mr. LARGENT, Mr.

MCINTOSH, Mrs. MYRICK, Mr. SHADEGG, Mr. SMITH of New Jersey, Mr.

SMITH of Texas, Mr. STOCKMAN, Mr. WATTS of Oklahoma, and Mr.

WELDON of Florida) 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 increase

the amount of the charitable contribution deduction, to

allow such deduction to individuals who do not itemize

other deductions, 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,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Giving Incentive and

5 Volunteer Empowerment (GIVE) Act’’.
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1 SEC. 2. MODIFICATIONS TO DEDUCTION FOR CHARITABLE

2 CONTRIBUTIONS.

3 (a) INCREASE IN AMOUNT OF DEDUCTION FOR INDI4 VIDUALS.—Paragraph (1) of section 170(a) of the Inter5 nal Revenue Code of 1986 (relating to charitable, etc.,

6 contributions and gifts) is amended by adding at the end

7 the following: ‘‘In the case of an individual, the amount

8 of each charitable contribution shall be treated for pur9 poses of this section as being equal to 120 percent of the

10 amount of such contribution which (but for this sentence)

11 would otherwise be taken into account under this section.’’

12 (b) CONTRIBUTIONS MADE AFTER CLOSE OF TAX13 ABLE YEAR.—Subsection (a) of section 170 of such Code

14 is amended by adding at the end the following new para15 graph:

16 ‘‘(4) TIME WHEN CONTRIBUTIONS DEEMED

17 MADE.—The taxpayer may elect to treat any chari18 table contribution which is made not later than the

19 time prescribed by law for filing the return for the

20 taxable year (not including extensions thereof) as

21 being made on the last day of such taxable year.

22 Such an election, once made, shall be irrevocable.’’

23 (c) DEDUCTION ALLOWED TO INDIVIDUALS WHO DO

24 NOT ITEMIZE OTHER DEDUCTIONS.—

25 (1) IN GENERAL.—Section 170 of such Code

26 (relating to charitable, etc., contributions and gifts)
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1 is amended by redesignating subsection (m) as sub2 section (n) and by inserting after subsection (l) the

3 following new subsection:

4 ‘‘(m) DEDUCTION FOR INDIVIDUALS NOT ITEMIZING

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

6 itemize his deductions for the taxable year, the amount

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

8 be taken into account as a direct charitable deduction

9 under section 63 to the extent such amount exceeds

10 $1,000 ($2,000 in the case of a joint return).’’

11 (2) DIRECT CHARITABLE DEDUCTION.—

12 (A) IN GENERAL.—Subsection (b) of sec13 tion 63 of such Code is amended by striking

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

15 the period at the end of paragraph (2) and in16 serting ‘‘, and’’, and by adding at the end

17 thereof the following new paragraph:

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

19 (B) DEFINITION.—Section 63 of such

20 Code is amended by redesignating subsection

21 (g) as subsection (h) and by inserting after sub22 section (f) the following new subsection:

23 ‘‘(g) DIRECT CHARITABLE DEDUCTION.—For pur24 poses of this section, the term ‘direct charitable deduction’

25 means that portion of the amount allowable under section
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1 170(a) which is taken as a direct charitable deduction for

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

3 (C) CONFORMING AMENDMENT.—Sub4 section (d) of section 63 of such Code is amend5 ed by striking ‘‘and’’ at the end of paragraph

6 (1), by striking the period at the end of para7 graph (2) and inserting ‘‘, and’’, and by adding

8 at the end thereof the following new paragraph:

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

10 (d) CHARITABLE CONTRIBUTION DEDUCTION NOT

11 SUBJECT TO OVERALL LIMITATION ON ITEMIZED DE12 DUCTIONS.—Subsection (c) of section 68 of such Code (re13 lating to overall limitation on itemized deductions) is

14 amended by striking ‘‘and’’ at the end of paragraph (2),

15 by striking the period at the end of paragraph (3) and

16 inserting ‘‘, and’’, and by adding at the end thereof the

17 following new paragraph:

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

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

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

21 this section shall apply to taxable years beginning after

22 December 31, 1994.

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