II 

115TH CONGRESS 

1ST SESSION S. 1343 

To amend the Internal Revenue Code to extend and modify certain charitable 

tax provisions. 

IN THE SENATE OF THE UNITED STATES 

JUNE 13, 2017 

Mr. THUNE (for himself, Mr. CASEY, Mr. WYDEN, and Mr. ROBERTS) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code to extend and modify 

certain charitable tax provisions. 

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 ‘‘Charities Helping 

5 Americans Regularly Throughout the Year Act of 2017’’. 

6 SEC. 2. SENSE OF THE SENATE RELATING TO THE PROTEC7 TION OF CHARITABLE DEDUCTIONS. 

8 (a) FINDINGS.—The Senate makes the following 

9 findings: 


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1 (1) The deduction for charitable contributions 

2 has been an important and effective part of the tax 

3 code for almost 100 years. 

4 (2) The deduction for charitable contributions 

5 is unique as it is the only provision that encourages 

6 taxpayers to give away a portion of their income for 

7 the benefit of others. 

8 (3) In 2012, nonprofit organizations provided 

9 11,400,000 jobs, accounting for 10.3 percent of the 

10 country’s private-sector workforce. 

11 (4) In 2015, total charitable giving was esti12 mated to be $373,250,000,000 (a 4.1-percent in13 crease from 2014) and accounted for 2.1 percent of 

14 the gross domestic product. 

15 (b) SENSE OF THE SENATE.—It is the sense of the 

16 Senate that— 

17 (1) encouraging charitable giving should be a 

18 goal of tax reform; and 

19 (2) Congress should ensure that the value and 

20 scope of the deduction for charitable contributions is 

21 not diminished during a comprehensive reform of the 

22 tax code. 


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1 SEC. 3. DETERMINATION OF STANDARD MILEAGE RATE 

2 FOR CHARITABLE CONTRIBUTIONS DEDUC3 TION. 

4 (a) DETERMINATION OF STANDARD MILEAGE RATE

5 FOR CHARITABLE CONTRIBUTIONS DEDUCTION.—Sub6 section (i) of section 170 of the Internal Revenue Code 

7 of 1986 is amended to read as follows: 

8 ‘‘(i) STANDARD MILEAGE RATE FOR USE OF PAS9 SENGER AUTOMOBILE.—For purposes of computing the 

10 deduction under this section for use of a passenger auto11 mobile, the standard mileage rate shall be the rate deter12 mined by the Secretary, which rate shall not be less than 

13 the standard mileage rate used for purposes of section 

14 213.’’. 

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

16 this section shall apply to miles traveled after the date 

17 of the enactment of this Act. 

18 SEC. 4. MODIFICATION OF SUBSTANTIATION REQUIRE19 MENTS FOR CHARITABLE CONTRIBUTIONS. 

20 (a) IN GENERAL.—Paragraph (8) of section 

21 170(f)(8) of the Internal Revenue Code of 1986 is amend22 ed by striking subparagraph (D) and by redesignating 

23 subparagraph (E) as subparagraph (D). 

24 (b) EFFECTIVE DATE.—The amendments made by 

25 this section shall apply to contributions made in taxable 

26 years beginning after December 31, 2016. 


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1 SEC. 5. MANDATORY ELECTRONIC FILING FOR ANNUAL RE2 TURNS OF EXEMPT ORGANIZATIONS. 

3 (a) IN GENERAL.—Section 6033 of the Internal Rev4 enue Code of 1986 is amended by redesignating subsection 

5 (n) as subsection (o) and by inserting after subsection (m) 

6 the following new subsection: 

7 ‘‘(n) MANDATORY ELECTRONIC FILING.—Any orga8 nization required to file a return under this section shall 

9 file such return in electronic form.’’. 

10 (b) INSPECTION OF ELECTRONICALLY FILED AN11 NUAL RETURNS.—Subsection (b) of section 6104 is 

12 amended by adding at the end the following: ‘‘Any annual 

13 return required to be filed electronically under section 

14 6033(n) shall be made available by the Secretary to the 

15 public in machine readable format.’’. 

16 (c) EFFECTIVE DATE.— 

17 (1) IN GENERAL.—Except as provided in para18 graph (2), the amendments made by this section 

19 shall apply to taxable years beginning after the date 

20 of the enactment of this Act. 

21 (2) TRANSITIONAL RELIEF.— 

22 (A) SMALL ORGANIZATIONS.— 

23 (i) IN GENERAL.—In the case of any 

24 small organizations, or any other organiza25 tions for which the Secretary determines 

26 the application of the amendments made 


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1 by subsection (a) would cause undue bur2 den without a delay, the Secretary may 

3 delay the application of such amendments, 

4 but not later than taxable years beginning 

5 2 years after the date of the enactment of 

6 this Act. 

7 (ii) SMALL ORGANIZATION.—For pur8 poses of clause (i), the term ‘‘small organi9 zation’’ means any organization— 

10 (I) the gross receipts of which for 

11 the taxable year are less than 

12 $200,000; and 

13 (II) the aggregate gross assets of 

14 which at the end of the taxable year 

15 are less than $500,000. 

16 (B) ORGANIZATIONS FILING FORM 990– 

17 T.—In the case of any organization described in 

18 section 511(a)(2) of the Internal Revenue Code 

19 of 1986 which is subject to the tax imposed by 

20 section 511(a)(1) of such Code on its unrelated 

21 business taxable income, or any organization re22 quired to file a return under section 6033 of 

23 such Code and include information under sub24 section (e) thereof, the Secretary may delay the 

25 application of the amendments made by this 


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1 section, but not later than taxable years begin2 ning 2 years after the date of the enactment of 

3 this Act. 

4 SEC. 6. MODIFICATION OF RULES RELATING TO DONOR AD5 VISED FUNDS. 

6 (a) ALLOWANCE OF TAX-FREE CHARITABLE DIS7 TRIBUTIONS FROM INDIVIDUAL RETIREMENT AC8 COUNTS.— 

9 (1) IN GENERAL.—Clause (i) of section 

10 408(d)(8)(B) of the Internal Revenue Code of 1986 

11 is amended by striking ‘‘or any fund or account de12 scribed in section 4966(d)(2)’’. 

13 (2) EFFECTIVE DATE.—The amendment made 

14 by this subsection shall apply to distributions made 

15 in taxable years beginning after December 31, 2016. 

16 (b) RETURN DISCLOSURES.— 

17 (1) DISTRIBUTIONS.—Subsection (k) of section 

18 6033 of the Internal Revenue Code of 1986 is 

19 amended— 

20 (A) in paragraph (2), by striking ‘‘and’’ at 

21 the end; 

22 (B) in paragraph (3), by striking the pe23 riod at the end and inserting a comma; and 

24 (C) by adding at the end the following new 

25 paragraphs: 


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1 ‘‘(4) list the total number of such funds which 

2 were in existence for the 36-month period ending at 

3 the close of such taxable year, 

4 ‘‘(5) list the total number of funds described in 

5 paragraph (4) which made at least 1 grant during 

6 the period described in such paragraph, and 

7 ‘‘(6) set forth— 

8 ‘‘(A) whether such organization has a pub9 licly available policy with respect to funds which 

10 are inactive, dormant, or do not make distribu11 tions during the period described in paragraph 

12 (4), 

13 ‘‘(B) a description of the organization’s 

14 policy for responding to funds described in sub15 paragraph (A) or a statement that no such pol16 icy is in effect, and 

17 ‘‘(C) whether such organization regularly 

18 and consistently monitors and enforces compli19 ance with the policy described in subparagraph 

20 (A) with respect to such funds.’’. 

21 (2) EFFECTIVE DATE.—The amendment made 

22 by this subsection shall apply to returns for taxable 

23 years beginning after December 31, 2017. 


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1 SEC. 7. MODIFICATION OF THE TAX RATE FOR THE EXCISE 

2 TAX ON INVESTMENT INCOME OF PRIVATE 

3 FOUNDATIONS. 

4 (a) IN GENERAL.—Section 4940(a) of the Internal 

5 Revenue Code of 1986 is amended by striking ‘‘2 percent’’ 

6 and inserting ‘‘1 percent’’. 

7 (b) ELIMINATION OF REDUCED TAX WHERE FOUN8 DATION MEETS CERTAIN DISTRIBUTION REQUIRE9 MENTS.—Section 4940 of such Code is amended by strik10 ing subsection (e). 

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

12 this section shall apply to taxable years beginning after 

13 the date of the enactment of this Act. 

14 SEC. 8. EXCEPTION FROM PRIVATE FOUNDATION EXCESS 

15 BUSINESS HOLDINGS TAX FOR CERTAIN 

16 PHILANTHROPIC BUSINESS HOLDINGS. 

17 (a) IN GENERAL.—Section 4943 of the Internal Rev18 enue Code of 1986 is amended by adding at the end the 

19 following new subsection: 

20 ‘‘(g) EXCEPTION FOR CERTAIN PHILANTHROPIC

21 BUSINESS HOLDINGS.— 

22 ‘‘(1) IN GENERAL.—Subsection (a) shall not 

23 apply with respect to the holdings of a private foun24 dation in any business enterprise which for the tax25 able year meets— 


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1 ‘‘(A) the exclusive ownership requirements 

2 of paragraph (2), 

3 ‘‘(B) the all profits to charity requirement 

4 of paragraph (3), and 

5 ‘‘(C) the independent operation require6 ments of paragraph (4). 

7 ‘‘(2) EXCLUSIVE OWNERSHIP.—The exclusive 

8 ownership requirements of this paragraph are met 

9 if— 

10 ‘‘(A) all ownership interests in the business 

11 enterprise are held by the private foundation at 

12 all times during the taxable year, and 

13 ‘‘(B) all the private foundation’s ownership 

14 interests in the business enterprise were ac15 quired under the terms of a will or trust upon 

16 the death of the testator or settlor, as the case 

17 may be. 

18 ‘‘(3) ALL PROFITS TO CHARITY.— 

19 ‘‘(A) IN GENERAL.—The all profits to 

20 charity requirement of this paragraph is met if 

21 the business enterprise, not later than 120 days 

22 after the close of the taxable year, distributes 

23 an amount equal to its net operating income for 

24 such taxable year to the private foundation. 


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1 ‘‘(B) NET OPERATING INCOME.—For pur2 poses of this paragraph, the net operating in3 come of any business enterprise for any taxable 

4 year is an amount equal to the gross income of 

5 the business enterprise for the taxable year, re6 duced by the sum of— 

7 ‘‘(i) the deductions allowed by chapter 

8 1 for the taxable year which are directly 

9 connected with the production of such in10 come, 

11 ‘‘(ii) the tax imposed by chapter 1 on 

12 the business enterprise for the taxable 

13 year, and 

14 ‘‘(iii) an amount for a reasonable re15 serve for working capital and other busi16 ness needs of the business enterprise. 

17 ‘‘(4) INDEPENDENT OPERATION.—The inde18 pendent operation requirements of this paragraph 

19 are met if, at all times during the taxable year— 

20 ‘‘(A) no substantial contributor (as defined 

21 in section 4958(c)(3)(C)) to the private founda22 tion, or family member of such a contributor 

23 (determined under section 4958(f)(4)), is a di24 rector, officer, trustee, manager, employee, or 

25 contractor of the business enterprise (or an inVerDate Sep 11 2014 04:38 Jun 16, 2017 Jkt 069200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S1343.IS S1343

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1 dividual having powers or responsibilities simi2 lar to any of the foregoing), 

3 ‘‘(B) at least a majority of the board of di4 rectors of the private foundation are individuals 

5 other than individuals who are either— 

6 ‘‘(i) directors or officers of the busi7 ness enterprise, or 

8 ‘‘(ii) members of the family (deter9 mined under section 4958(f)(4)) of a sub10 stantial contributor (as defined in section 

11 4958(c)(3)(C)) to the private foundation, 

12 and 

13 ‘‘(C) there is no loan outstanding from the 

14 business enterprise to a substantial contributor 

15 (as so defined) to the private foundation or a 

16 family member of such contributor (as so deter17 mined). 

18 ‘‘(5) CERTAIN DEEMED PRIVATE FOUNDATIONS

19 EXCLUDED.—This subsection shall not apply to— 

20 ‘‘(A) any fund or organization treated as a 

21 private foundation for purposes of this section 

22 by reason of subsection (e) or (f), 

23 ‘‘(B) any trust described in section 

24 4947(a)(1) (relating to charitable trusts), and 


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1 ‘‘(C) any trust described in section 

2 4947(a)(2) (relating to split-interest trusts).’’. 

3 (b) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to taxable years beginning after 

5 December 31, 2017. 

Æ 


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