Charitable Act

Subjects: Taxation

Summary:  <p><strong>Charitable Act</strong></p> <p>This bill allows individual taxpayers who do not otherwise itemize their tax deductions a deduction in taxable years beginning in 2023 or 2024 for charitable contributions. The deduction is limited to one-third of the standard deduction allowed to such taxpayers.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 566 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                 S. 566

  To amend the Internal Revenue Code of 1986 to modify and extend the 
 deduction for charitable contributions for individuals not itemizing 
                              deductions.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 28, 2023

Mr. Lankford (for himself, Mr. Coons, Mr. Rubio, Ms. Cortez Masto, Ms. 
  Hassan, Mr. Warnock, Ms. Collins, Ms. Klobuchar, Mr. Scott of South 
Carolina, Mr. Peters, and Mrs. Shaheen) 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 modify and extend the 
 deduction for charitable contributions for individuals not itemizing 
                              deductions.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Charitable Act''.

SEC. 2. MODIFICATION AND EXTENSION OF DEDUCTION FOR CHARITABLE 
              CONTRIBUTIONS FOR INDIVIDUALS NOT ITEMIZING DEDUCTIONS.

    (a) In General.--Subsection (p) of section 170 of the Internal 
Revenue Code of 1986 is amended to read as follows:
    ``(p) Special Rule for Taxpayers Who Do Not Elect To Itemize 
Deductions.--In the case of a taxable year beginning in 2023 or 2024, 
the deduction under this subsection for the taxable year shall be equal 
to so much of the deduction determined under this section (without 
regard to this subsection) for such taxable year as does not exceed an 
amount equal to \1/3\ of the amount of the standard deduction with 
respect to such individual for such taxable year. This subsection shall 
apply only in the case of an individual who does not elect to itemize 
deductions for the taxable year.''.
    (b) Elimination of Penalty.--
            (1) In general.--Section 6662(b) of the Internal Revenue 
        Code of 1986 is amended by striking paragraph (9) and by 
        redesignating paragraph (10) as paragraph (9).
            (2) Increased penalty.--Section 6662 of such Code is 
        amended by striking subsection (l).
            (3) Conforming amendments.--
                    (A) Sections 6662(h)(2)(D) of such Code is amended 
                by striking ``subsection (b)(10)'' and inserting 
                ``subsection (b)(9)''.
                    (B) Section 6664(c)(2) of such Code is amended by 
                striking ``section 6662(b)(10)'' and inserting 
                ``section 6662(b)(9)''.
                    (C) Section 6751(b)(2)(A) of such Code is amended 
                by striking ``by reason of paragraph (9) or (10) of 
                subsection (b) thereof'' and inserting ``by reason of 
                subsection (b)(9) thereof''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2022.
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