I
103D CONGRESS
2D SESSION
H. R. 3771
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 HOUSE OF REPRESENTATIVES
FEBRUARY 2, 1994
Mr. SCHUMER introduced the following bill; which was referred jointly to the
Committees on Ways and Means and the Judiciary
A BILL
To amend the Internal Revenue Code of 1986 to provide
tax incentives for businesses participating in gun ex-
change programs, and for other purposes.
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 ‘‘Gun Exchange Tax
Incentive Act of 1994’’.
SEC. 2. MODIFICATIONS TO CERTAIN LIMITATIONS ON
CHARITABLE DEDUCTION.
(a) GENERAL RULE.—Subsection (e) of section 170
of the Internal Revenue Code of 1986 (relating to certain
contributions of ordinary income and capital gain prop-
erty) is amended by adding at the end thereof the follow-
ing new paragraph:
‘‘(6) SPECIAL RULES FOR GUN EXCHANGE PRO-
GRAM CONTRIBUTIONS.—
‘‘(A) DEDUCTION
ALLOWED
FOR
FULL
MARKET
VALUE.—The deduction under sub-
section (a) for any qualified gun exchange pro-
gram contribution shall be an amount equal to
its fair market value and no reduction under
paragraph (1)(A) shall be made in the amount
of such contribution.
‘‘(B) INCREASE IN CORPORATE PERCENT-
AGE LIMITATION.—The limitation of subsection
(b)(2) shall be increased by the lesser of—
‘‘(i) the aggregate amount of qualified
gun exchange program contributions made
by the taxpayer during the taxable year, or
‘‘(ii) 5 percent of the taxpayer’s tax-
able income computed as provided in sub-
section (b)(2).
‘‘(C) QUALIFIED
GUN
EXCHANGE
PRO-
GRAM
CONTRIBUTION.—For purposes of this
paragraph, the term ‘qualified gun exchange
program contribution’ means any charitable
contribution of property described in paragraph
(1) of section 1221 or of a coupon or similar in-
strument which may be used to acquire prop-
erty so described if—
‘‘(i) such contribution is to a govern-
mental unit described in subsection (c)(1)
or to an organization described in sub-
section (c)(2) which is designated by a gov-
ernmental unit as a qualified recipient of
gun exchange program contributions,
‘‘(ii) the property (or coupon or simi-
lar instrument) is to be transferred in ex-
change for firearms to persons surrender-
ing firearms to a governmental unit in a
gun exchange program established and ad-
ministered by such governmental unit, and
‘‘(iii) the taxpayer received from the
governmental unit or organization des-
ignated under clause (i) a written state-
ment that the property (or coupon or simi-
lar instrument) was transferred as pro-
vided in clause (ii).’’
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to contributions made after the
date of the enactment of this Act.
SEC. 3. MODEL PROGRAM.
(a) MODEL PROGRAM.—The Attorney General shall
develop a written model program for business-sponsored
gun exchange programs.
(b) DISTRIBUTION.—Not later than 3 months after
the date of the enactment of this Act, the Attorney Gen-
eral shall make available such model to States, units of
local governments, and businesses.
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