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means a mounted work of art which contains
any part of a dead animal.’’.
(b) EFFECTIVE DATE.—The amendment made by this
section shall apply to contributions made after November
15, 2005.
SEC. 216. RECAPTURE OF TAX BENEFIT FOR CHARITABLE
CONTRIBUTIONS OF EXEMPT USE PROPERTY
NOT USED FOR AN EXEMPT USE.
(a) RECAPTURE OF DEDUCTION ON CERTAIN SALES
OF EXEMPT USE PROPERTY.—
(1) 
IN
GENERAL.—Clause 
(i) 
of 
section
170(e)(1)(B) (related to certain contributions of ordi-
nary income and capital gain property) is amended
to read as follows:
‘‘(i) of tangible personal property—
‘‘(I) if the use by the donee is un-
related to the purpose or function con-
stituting the basis for its exemption
under section 501 (or, in the case of a
governmental unit, to any purpose or
function described in subsection (c)), or
‘‘(II) which is applicable property
(as defined in paragraph (8)(C)) which
is sold, exchanged, or otherwise dis-
posed of by the donee before the last
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day of the taxable year in which the
contribution was made and with re-
spect to which the donee has not made
a certification in accordance with
paragraph (8)(D),’’.
(2) DISPOSITIONS
AFTER
CLOSE
OF
TAXABLE
YEAR.—Section 170(e), as amended by this Act, is
amended by adding at the end the following new
paragraph:
‘‘(8) RECAPTURE
OF
DEDUCTION
ON
CERTAIN
DISPOSITIONS OF EXEMPT USE PROPERTY.—
‘‘(A) IN GENERAL.—In the case of an appli-
cable disposition of applicable property, there
shall be included in the income of the donor of
such property for the taxable year of such donor
in which the applicable disposition occurs an
amount equal to the excess (if any) of—
‘‘(i) the amount of the deduction al-
lowed to the donor under this section with
respect to such property, over
‘‘(ii) the donor’s basis in such property
at the time such property was contributed.
‘‘(B) APPLICABLE DISPOSITION.—For pur-
poses of this paragraph, the term ‘applicable dis-
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position’ means any sale, exchange, or other dis-
position by the donee of applicable property—
‘‘(i) after the last day of the taxable
year of the donor in which such property
was contributed, and
‘‘(ii) before the last day of the 3-year
period beginning on the date of the con-
tribution of such property,
unless the donee makes a certification in accord-
ance with subparagraph (D).
‘‘(C) APPLICABLE
PROPERTY.—For pur-
poses of this paragraph, the term ‘applicable
property’ means charitable deduction property
(as defined in section 6050L(a)(2)(A))—
‘‘(i) which is tangible personal prop-
erty the use of which is identified by the
donee as related to the purpose or function
constituting the basis of the donee’s exemp-
tion under section 501, and
‘‘(ii) for which a deduction in excess of
the donor’s basis is allowed.
‘‘(D) CERTIFICATION.—A certification meets
the requirements of this subparagraph if it is a
written statement which is signed under penalty
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of perjury by an officer of the donee organization
and—
‘‘(i) which—
‘‘(I) certifies that the use of the
property by the donee was related to
the purpose or function constituting
the basis for the donee’s exemption
under section 501, and
‘‘(II) describes how the property
was used and how such use furthered
such purpose or function, or
‘‘(ii) which—
‘‘(I) states the intended use of the
property by the donee at the time of
the contribution, and
‘‘(II) certifies that such intended
use has become impossible or infeasible
to implement.’’.
(b) REPORTING REQUIREMENTS.—Paragraph (1) of
section 6050L(a) (relating to returns relating to certain dis-
positions of donated property) is amended—
(1) by striking ‘‘2 years’’ and inserting ‘‘3
years’’, and
(2) by striking ‘‘and’’ at the end of subpara-
graph (D), by striking the period at the end of sub-
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paragraph (E) and inserting a comma, and by in-
serting at the end the following:
‘‘(F) a description of the donee’s use of the
property, and
‘‘(G) a statement indicating whether the use
of the property was related to the purpose or
function constituting the basis for the donee’s ex-
emption under section 501.
In any case in which the donee indicates that the use
of applicable property (as defined in section
170(e)(1)(C)) was related to the purpose or function
constituting the basis for the exemption of the donee
under section 501 under subparagraph (G), the donee
shall include with the return the certification de-
scribed in section 170(e)(8)(D) if such certification is
required under section 170(e)(8).’’.
(c) PENALTY.—
(1) IN GENERAL.—Part I of subchapter B of
chapter 68 (relating to assessable penalties), as
amended by this Act, is amended by inserting after
section 6720B the following new section:
‘‘SEC. 6720C. FRAUDULENT IDENTIFICATION OF EXEMPT
USE PROPERTY.
‘‘In addition to any criminal penalty provided by law,
any person who identifies applicable property (as defined
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in section 170(e)(8)(C)) as having a use which is related
to a purpose or function constituting the basis for the
donee’s exemption under section 501 and who knows that
such property is not intended for such a use shall pay a
penalty of $10,000.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions for part I of subchapter B of chapter 68, as
amended by this Act, is amended by adding after the
item relating to section 6720B the following new item:
‘‘Sec. 6720C. Fraudulent identification of exempt use property.’’.
(d) EFFECTIVE DATE.—
(1) RECAPTURE.—The amendments made by
subsection (a) shall apply to contributions after June
1, 2006.
(2) REPORTING.—The amendments made by sub-
section (b) shall apply to returns filed after June 1,
2006.
(3) PENALTY.—The amendments made by sub-
section (c) shall apply to identifications made after
the date of the enactment of this Act.
SEC. 217. LIMITATION OF DEDUCTION FOR CHARITABLE
CONTRIBUTIONS OF CLOTHING AND HOUSE-
HOLD ITEMS.
(a) IN GENERAL.—Subsection (f) of section 170, as
amended by this Act, is amended by adding at the end the
following new paragraph: