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 Over-
sight, 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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. TAX CREDIT FOR CERTAIN POLITICAL CON-
TRIBUTIONS.
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to nonrefundable personal credits) is
amended by inserting after section 22 the following new
section:
‘‘SEC. 23. CREDIT FOR POLITICAL CONTRIBUTIONS.
‘‘(a) IN GENERAL.—In the case of an individual,
there shall be allowed as a credit against the tax imposed
by this chapter for the taxable year an amount equal to
one-half of all political contributions, and all newsletter
fund contributions, paid by the taxpayer during the tax-
able year.
‘‘(b) LIMITATIONS.—
‘‘(1) MAXIMUM CREDIT.—The credit allowed by
subsection (a) shall not exceed $100 ($200 in the
case of a joint return).
‘‘(2) VERIFICATION.—The credit allowed by
subsection (a) shall be allowed, with respect to any
political contribution or newsletter fund contribution,
only if such contribution is verified in such manner
as the Secretary shall prescribe by regulation.
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) 
CANDIDATE.—The 
term 
‘candidate’
means, with respect to any Federal, State, or local
elective public office, an individual who—
‘‘(A) publicly announces before the close of
the calendar year following the calendar year in
which the political contribution is made that the
individual is a candidate for nomination or elec-
tion to such office; and
‘‘(B) meets the qualifications prescribed by
law to hold such office.
‘‘(2) NATIONAL POLITICAL PARTY.—The term
‘national political party’ means—
‘‘(A) in the case of political contributions
made during a taxable year of the taxpayer in
which the electors of President and Vice Presi-
dent are chosen, a political party presenting
candidates or electors for such offices on the of-
ficial election ballot of ten or more States; or
‘‘(B) in the case of political contributions
made during any other taxable year of the tax-
payer, a political party which met the qualifica-
tions described in subparagraph (A) in the last
preceding election of a President and Vice
President.
‘‘(3) NEWSLETTER
FUND.—The term ‘news-
letter fund’ means a fund described in section
527(g)(1).
‘‘(4) POLITICAL
CONTRIBUTION.—The term
‘political contribution’ means a contribution or gift
of money, or the fair market value of a contribution
or gift of property, to—
‘‘(A) an individual who is a candidate for
nomination or election to any Federal, State, or
local elective public office in any primary, gen-
eral, or special election, for use by such individ-
ual to further the candidacy of the individual
for nomination or election to such office;
‘‘(B) any committee, association, or organi-
zation (whether or not incorporated) organized
and operated exclusively for the purposes of in-
fluencing, or attempting to influence, the nomi-
nation or election of one or more individuals
who are candidates for nomination or election
to any Federal, State, or local elective public of-
fice, for use by such committee, association, or
organization to further the candidacy of such
individual or individuals for nomination or elec-
tion to such office;
‘‘(C) the national committee of a national
political party;
‘‘(D) the State committee of a national po-
litical party as designated by the national com-
mittee of such party; or
‘‘(E) a local committee of a national politi-
cal party as designated by the State committee
of such party designated under subparagraph
(D).
‘‘(5) STATE
AND
LOCAL.—The term ‘State’
means the various States and the District of Colum-
bia; and the term ‘local’ means a political subdivi-
sion or part thereof, or two or more political subdivi-
sions or parts thereof, of a State.’’.
‘‘(d) CROSS REFERENCES.—
‘‘For transfer of appreciated property to a politi-
cal organization, see section 84.
‘‘For certain indirect contributions to political
parties, see section 276.’’.
(b) CONFORMING AMENDMENT.—The table of sec-
tions for subpart A of part IV of subchapter A of chapter
1 of such Code (relating to nonrefundable personal cred-
its) is amended by inserting after the item relating to sec-
tion 22 the following new item:
‘‘Sec. 23. Credit for political contributions.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31 of the calendar year in which this Act is
enacted.
SEC. 2. PRESIDENTIAL CAMPAIGN FUND.
(a) REPEAL OF PROVISIONS CONCERNING PRESI-
DENTIAL CAMPAIGN FUND.—The following provisions of
such Code are hereby repealed: