II

106TH CONGRESS

2D SESSION S. 2475

To amend the Internal Revenue Code of 1986 to allow nonitemizers a deduction for a portion of their charitable contributions, and for other purposes.

IN THE SENATE OF THE UNITED STATES

APRIL 27, 2000

Mr. COVERDELL 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 allow nonitemizers a deduction for a portion of their charitable

contributions, 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 ‘‘Neighbor to Neighbor

5 Act’’.
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1 SEC. 2. DEDUCTION FOR PORTION OF CHARITABLE CON2 TRIBUTIONS TO BE ALLOWED TO INDIVID3 UALS WHO DO NOT ITEMIZE DEDUCTIONS.

4 (a) IN GENERAL.—Section 170 of the Internal Rev5 enue Code of 1986 (relating to charitable, etc., contribu6 tions and gifts) is amended by redesignating subsection

7 (m) as subsection (n) and by inserting after subsection

8 (l) the following new subsection:

9 ‘‘(m) DEDUCTION FOR INDIVIDUALS NOT ITEMIZING

10 DEDUCTIONS.—

11 ‘‘(1) IN GENERAL.—In the case of an individual

12 who does not itemize the individual’s deductions for

13 the taxable year, the amount allowable under sub14 section (a) shall be taken into account as a direct

15 charitable deduction under section 63.

16 ‘‘(2) LIMITATION.—The portion of the amount

17 allowable under subsection (a) to which paragraph

18 (1) applies for the taxable year shall not exceed

19 $500 ($1,000 in the case of a joint return under

20 section 6013).’’

21 (b) DIRECT CHARITABLE DEDUCTION.—

22 (1) IN GENERAL.—Section 63(b) of the Internal

23 Revenue Code of 1986 (relating to individuals who

24 do not itemize their deductions) is amended by strik25 ing ‘‘and’’ at the end of paragraph (1), by striking

26 the period at the end of paragraph (2) and inserting
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•S 2475 IS

1 ‘‘, and’’, and by adding at the end the following new

2 paragraph:

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

4 (2) DEFINITION.—Section 63 of such Code (re5 lating to taxable income defined) is amended by re6 designating subsection (g) as subsection (h) and by

7 inserting after subsection (f) the following new sub8 section:

9 ‘‘(g) DIRECT CHARITABLE DEDUCTION.—For pur10 poses of this section, the term ‘direct charitable deduction’

11 means that portion of the amount allowable under section

12 170(a) which is taken as a direct charitable deduction for

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

14 (3) CONFORMING AMENDMENT.—Section 63(d)

15 of such Code (defining itemized deductions) is

16 amended by striking ‘‘and’’ at the end of paragraph

17 (1), by striking the period at the end of paragraph

18 (2) and inserting ‘‘, and’’, and by adding at the end

19 the following new paragraph:

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

21 (c) TIME WHEN CONTRIBUTIONS DEEMED MADE.—

22 Section 170(f) of the Internal Revenue Code of 1986 (re23 lating to disallowance of deduction in certain cases and

24 special rules) is amended by adding at the end the fol25 lowing new paragraph:
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1 ‘‘(10) TIME WHEN CONTRIBUTIONS DEEMED

2 PAID.—For purposes of this section, in the case of

3 an individual, a taxpayer shall be deemed to have

4 paid a charitable contribution on the last day of the

5 preceding taxable year if the contribution is paid on

6 account of such taxable year and is paid not later

7 than the time prescribed by law for filing the return

8 for such taxable year (not including extensions

9 thereof).’’

10 (d) EFFECTIVE DATE.—The amendments made by

11 this section shall apply to taxable years beginning after

12 December 31, 1999.

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