I 
108TH CONGRESS 
1ST SESSION H. R. 1672
To amend the Internal Revenue Code of 1986 to provide a credit for 
charitable contributions to fight poverty. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 8, 2003
Mr. KOLBE (for himself and Mr. KNOLLENBERG) introduced the following bill; 
which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
a credit for charitable contributions to fight poverty.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Tax Credit for Chari-
table Contributions Act of 2003’’.
SEC. 2. CREDIT FOR CHARITABLE CONTRIBUTIONS TO CER-
TAIN PRIVATE CHARITIES PROVIDING AS-
SISTANCE TO THE POOR. 
(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 25B the following new 
section: 
‘‘SEC. 25C. CREDIT FOR CERTAIN CHARITABLE CONTRIBU-
TIONS. 
‘‘(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 
the qualified charitable contributions which are paid by 
the taxpayer during the taxable year. 
‘‘(b) LIMITATION.—The credit allowed by subsection 
(a) for the taxable year shall not exceed $100 (twice such 
amount in the case of a joint return). 
‘‘(c) QUALIFIED CHARITABLE CONTRIBUTION.—For 
purposes of this section, the term ‘qualified charitable con-
tribution’ means any charitable contribution (as defined 
in section 170(c)) made in cash to a qualified charity but 
only if the amount of each such contribution, and the re-
cipient thereof, are identified on the return for the taxable 
year during which such contribution is made. 
‘‘(d) QUALIFIED CHARITY.—
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘qualified charity’ means, with respect 
to the taxpayer, any organization described in sec-
tion 501(c)(3) and exempt from tax under section 
501(a)—
‘‘(A) which is certified by the Secretary as 
meeting the requirements of paragraphs (2) 
and (3), 
‘‘(B) which is organized under the laws of 
the United States or of any State in which the 
organization is qualified to operate, and 
‘‘(C) which is required, or elects to be 
treated as being required, to file returns under 
section 6033. 
‘‘(2) CHARITY
MUST
PRIMARILY
ASSIST
THE 
POOR.—An organization meets the requirements of 
this paragraph only if the predominant activity of 
such organization is the provision of services to indi-
viduals whose annual incomes generally do not ex-
ceed 150 percent of the official poverty line (as de-
fined by the Office of Management and Budget). 
‘‘(3) MINIMUM EXPENDITURE REQUIREMENT.—
‘‘(A) IN GENERAL.—An organization meets 
the requirements of this paragraph only if the 
Secretary reasonably expects that the annual 
exempt purpose expenditures of such organiza-
tion will not be less than 70 percent of the an-
nual aggregate expenditures of such organiza-
tion. 
‘‘(B) EXEMPT PURPOSE EXPENDITURE.—
For purposes of subparagraph (A)—
‘‘(i) IN GENERAL.—The term ‘exempt 
purpose expenditure’ means any expendi-
ture to carry out the activity referred to in 
paragraph (2). 
‘‘(ii) EXCEPTIONS.—Such term shall 
not include—
‘‘(I) any administrative expense, 
‘‘(II) any expense for the purpose 
of influencing legislation (as defined 
in section 4911(d)), 
‘‘(III) any expense primarily for 
the purpose of fundraising, and 
‘‘(IV) any expense for litigation 
on behalf of any individual referred to 
in paragraph (2). 
‘‘(e) 
TIME
WHEN
CONTRIBUTIONS
DEEMED 
MADE.—For purposes of this section, at the election of 
the taxpayer, a contribution which is made not later than 
the time prescribed by law for filing the return for the 
taxable year (not including extensions thereof) shall be 
treated as made on the last day of such taxable year.
‘‘(f) COORDINATION WITH DEDUCTION FOR CHARI-
TABLE CONTRIBUTIONS.—
‘‘(1) CREDIT
IN
LIEU
OF
DEDUCTION.—The 
credit provided by subsection (a) for any qualified 
charitable contribution shall be in lieu of any deduc-
tion otherwise allowable under this chapter for such 
contribution. 
‘‘(2) 
ELECTION
TO
HAVE
SECTION
NOT 
APPLY.—A taxpayer may elect for any taxable year 
to have this section not apply. 
‘‘(g) MAXIMUM AMOUNT OF CREDIT ADJUSTED FOR 
INFLATION.—In the case of any taxable year beginning 
in a calendar year after 2003, the $100 amount contained 
in subsection (b) shall be increased by an amount equal 
to—
‘‘(1) such dollar amount, multiplied by 
‘‘(2) the cost-of-living adjustment determined 
under section 1(f)(3) for the calendar year in which 
the taxable year begins, determined by substituting 
‘calendar year 2002’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof. 
Any increase determined under the preceding sentence 
shall be rounded to the nearest multiple of $5.’’
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part IV of subchapter A of chapter 1
of such Code is amended by inserting after the item relat-
ing to section 25B the following new item:
‘‘Sec. 25C. Credit for certain charitable contributions.’’
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to contributions made after the 
90th day after the date of the enactment of this Act in 
taxable years ending after such date.
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