I

104TH CONGRESS

1ST SESSION H. R. 2171

To amend the Internal Revenue Code of 1986 to provide a tax credit for

certain political contributions and to eliminate the Presidential Campaign

Fund.

IN THE HOUSE OF REPRESENTATIVES

AUGUST 2, 1995

Mr. PETRI introduced the following bill; which was referred to the Committee

on Ways and Means, and in addition to the Committee on House Oversight, for a period to be subsequently determined by the Speaker, in each

case for consideration of such provisions as fall within the jurisdiction of

the committee concerned

A BILL

To amend the Internal Revenue Code of 1986 to provide

a tax credit for certain political contributions and to

eliminate the Presidential Campaign Fund.

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

3 SECTION 1. TAX CREDIT FOR CERTAIN POLITICAL CON4 TRIBUTIONS.

5 (a) IN GENERAL.—Subpart A of part IV of sub6 chapter A of chapter 1 of the Internal Revenue Code of

7 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. CREDIT FOR POLITICAL CONTRIBUTIONS.

4 ‘‘(a) IN GENERAL.—In the case of an individual,

5 there shall be allowed as a credit against the tax imposed

6 by this chapter for the taxable year an amount equal to

7 one-half of all political contributions, and all newsletter

8 fund contributions, paid by the taxpayer during the tax9 able year.

10 ‘‘(b) LIMITATIONS.—

11 ‘‘(1) MAXIMUM CREDIT.—The credit allowed by

12 subsection (a) shall not exceed $100 ($200 in the

13 case of a joint return).

14 ‘‘(2) VERIFICATION.—The credit allowed by

15 subsection (a) shall be allowed, with respect to any

16 political contribution or newsletter fund contribution,

17 only if such contribution is verified in such manner

18 as the Secretary shall prescribe by regulation.

19 ‘‘(c) DEFINITIONS.—For purposes of this section—

20 ‘‘(1) CANDIDATE.—The term ‘candidate’

21 means, with respect to any Federal, State, or local

22 elective public office, an individual who—

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

24 the calendar year following the calendar year in

25 which the political contribution is made that the
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1 individual is a candidate for nomination or elec2 tion to such office; and

3 ‘‘(B) meets the qualifications prescribed by

4 law to hold such office.

5 ‘‘(2) NATIONAL POLITICAL PARTY.—The term

6 ‘national political party’ means—

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

8 made during a taxable year of the taxpayer in

9 which the electors of President and Vice Presi10 dent are chosen, a political party presenting

11 candidates or electors for such offices on the of12 ficial election ballot of ten or more States; or

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

14 made during any other taxable year of the tax15 payer, a political party which met the qualifica16 tions described in subparagraph (A) in the last

17 preceding election of a President and Vice

18 President.

19 ‘‘(3) NEWSLETTER FUND.—The term ‘news20 letter fund’ means a fund described in section

21 527(g)(1).

22 ‘‘(4) POLITICAL CONTRIBUTION.—The term

23 ‘political contribution’ means a contribution or gift

24 of money, or the fair market value of a contribution

25 or gift of property, to—
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1 ‘‘(A) an individual who is a candidate for

2 nomination or election to any Federal, State, or

3 local elective public office in any primary, gen4 eral, or special election, for use by such individ5 ual to further the candidacy of the individual

6 for nomination or election to such office;

7 ‘‘(B) any committee, association, or organi8 zation (whether or not incorporated) organized

9 and operated exclusively for the purposes of in10 fluencing, or attempting to influence, the nomi11 nation or election of one or more individuals

12 who are candidates for nomination or election

13 to any Federal, State, or local elective public of14 fice, for use by such committee, association, or

15 organization to further the candidacy of such

16 individual or individuals for nomination or elec17 tion to such office;

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

19 political party;

20 ‘‘(D) the State committee of a national po21 litical party as designated by the national com22 mittee of such party; or

23 ‘‘(E) a local committee of a national politi24 cal party as designated by the State committee
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1 of such party designated under subparagraph

2 (D).

3 ‘‘(5) STATE AND LOCAL.—The term ‘State’

4 means the various States and the District of Colum5 bia; and the term ‘local’ means a political subdivi6 sion or part thereof, or two or more political subdivi7 sions or parts thereof, of a State.’’.

8 ‘‘(d) CROSS REFERENCES.—

‘‘For transfer of appreciated property to a political organization, see section 84.

‘‘For certain indirect contributions to political

parties, see section 276.’’.

9 (b) CONFORMING AMENDMENT.—The table of sec10 tions for subpart A of part IV of subchapter A of chapter

11 1 of such Code (relating to nonrefundable personal cred12 its) is amended by inserting after the item relating to sec13 tion 22 the following new item:

‘‘Sec. 23. Credit for political contributions.’’

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

15 this section shall apply to taxable years beginning after

16 December 31 of the calendar year in which this Act is

17 enacted.

18 SEC. 2. PRESIDENTIAL CAMPAIGN FUND.

19 (a) REPEAL OF PROVISIONS CONCERNING PRESI20 DENTIAL CAMPAIGN FUND.—The following provisions of

21 such Code are hereby repealed:
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1 (1) Part VIII of subchapter A of chapter 61 of

2 subtitle F of such Code (relating to designation of

3 income tax payments to Presidential Election Cam4 paign Fund).

5 (2) Subtitle H (relating to financing of Presi6 dential election campaigns).

7 (b) CONFORMING AMENDMENTS.—

8 (1) TABLE OF PARTS.—The table of parts of

9 subchapter A of chapter 61 of subtitle F of such

10 Code is amended by striking the item relating to

11 part VIII.

12 (2) TABLE OF SUBTITLES.—The table of sub13 titles of such Code is amended by striking the item

14 relating to subtitle H.

15 (c) EFFECTIVE DATES.—

16 (1) DESIGNATION OF INCOME TAX PAYMENTS

17 TO FUND.—The amendment made by subsection

18 (a)(1) applies to taxable years beginning after De19 cember 31, 1996.

20 (2) FINANCING OF PRESIDENTIAL ELECTION

21 CAMPAIGNS.—The amendment made by subsection

22 (a)(2) shall take effect on the date that is 2 years

23 after the date of the enactment of this Act, except

24 that no payment may be made from the Presidential

25 Election Campaign Fund or the Presidential Pri-
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1 mary Matching Payment Account with respect to

2 any Presidential election occurring more than 2

3 years after the date of the enactment of this Act.

4 (d) AMOUNTS REMAINING IN FUNDS.—The Sec5 retary of the Treasury shall deposit into the Treasury of

6 the United States as miscellaneous receipts any amounts

7 that remain, on the date that is 2 years after the date

8 of the enactment of this Act, in the Presidential Election

9 Campaign Fund or the Presidential Primary Matching

10 Payment Account.

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