II

103D CONGRESS

2D SESSION S. 1840

To amend the Internal Revenue Code of 1986 to provide tax incentives

for businesses participating in gun exchange programs, and for other

purposes.

IN THE SENATE OF THE UNITED STATES

FEBRUARY 9 (legislative day JANUARY 25), 1994

Mrs. BOXER (for herself and Mr. BROWN) introduced the following bill; which

was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to provide

tax incentives for businesses participating in gun exchange programs, 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 ‘‘Gun Exchange Tax

5 Incentive Act of 1994’’.

6 SEC. 2. MODIFICATIONS TO CERTAIN LIMITATIONS ON

7 CHARITABLE DEDUCTION.

8 (a) GENERAL RULE.—Subsection (e) of section 170

9 of the Internal Revenue Code of 1986 (relating to certain
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1 contributions of ordinary income and capital gain prop2 erty) is amended by adding at the end thereof the follow3 ing new paragraph:

4 ‘‘(6) SPECIAL RULES FOR GUN EXCHANGE PRO5 GRAM CONTRIBUTIONS.—

6 ‘‘(A) DEDUCTION ALLOWED FOR FULL

7 MARKET VALUE.—The deduction under sub8 section (a) for any qualified gun exchange pro9 gram contribution shall be an amount equal to

10 its fair market value and no reduction under

11 paragraph (1)(A) shall be made in the amount

12 of such contribution.

13 ‘‘(B) INCREASE IN CORPORATE PERCENT14 AGE LIMITATION.—The limitation of subsection

15 (b)(2) shall be increased by the lesser of—

16 ‘‘(i) the aggregate amount of qualified

17 gun exchange program contributions made

18 by the taxpayer during the taxable year, or

19 ‘‘(ii) 5 percent of the taxpayer’s tax20 able income computed as provided in sub21 section (b)(2).

22 ‘‘(C) QUALIFIED GUN EXCHANGE PRO23 GRAM CONTRIBUTION.—For purposes of this

24 paragraph, the term ‘qualified gun exchange

25 program contribution’ means any charitable
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1 contribution of property described in paragraph

2 (1) of section 1221 or of a coupon or similar in3 strument which may be used to acquire prop4 erty so described if—

5 ‘‘(i) such contribution is to a govern6 mental unit described in subsection (c)(1)

7 or to an organization described in sub8 section (c)(2) which is designated by a gov9 ernmental unit as a qualified recipient of

10 gun exchange program contributions,

11 ‘‘(ii) the property (or coupon or simi12 lar instrument) is to be transferred in ex13 change for firearms to persons surrender14 ing firearms to a governmental unit in a

15 gun exchange program established and ad16 ministered by such governmental unit, and

17 ‘‘(iii) the taxpayer received from the

18 governmental unit or organization des19 ignated under clause (i) a written state20 ment that the property (or coupon or simi21 lar instrument) was transferred as pro22 vided in clause (ii).’’

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

24 subsection (a) shall apply to contributions made after the

25 date of the enactment of this Act.
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1 SEC. 3. MODEL PROGRAM.

2 (a) MODEL PROGRAM.—The Attorney General shall

3 develop a written model program for business-sponsored

4 gun exchange programs.

5 (b) DISTRIBUTION.—Not later than 3 months after

6 the date of the enactment of this Act, the Attorney Gen7 eral shall make available such model to States, units of

8 local governments, and businesses.

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