I
107TH CONGRESS
2D SESSION
H. R. 4980
To amend the Internal Revenue Code of 1986 to provide a credit and
a deduction for small political contributions.
IN THE HOUSE OF REPRESENTATIVES
JUNE 20, 2002
Mr. PETRI (for himself and Mr. KANJORSKI) 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 and a deduction for small political contributions.
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 ‘‘Citizen Involvement
in Campaigns Act of 2002’’.
SEC. 2. TAX CREDIT FOR CERTAIN POLITICAL CONTRIBU-
TIONS.
(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 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
all political contributions paid by the taxpayer during the
taxable year.
‘‘(b) LIMITATIONS.—
‘‘(1) MAXIMUM CREDIT.—The credit allowed by
subsection (a) shall not exceed $200 ($400 in the
case of a joint return).
‘‘(2) VERIFICATION.—The credit allowed by
subsection (a) shall be allowed with respect to any
political contribution only if such contribution is
verified in such manner as the Secretary shall pre-
scribe by regulation.
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) 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 elective
public office in any primary, general, or special
election, for use by such individual to further
the candidacy of the individual for nomination
or election to such office, or
‘‘(B) the national committee of a national
political party.
‘‘(2) 
CANDIDATE.—The 
term 
‘candidate’
means, with respect to any Federal 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.
‘‘(3) 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.
‘‘(d) DENIAL OF DOUBLE BENEFIT.—No deduction
shall be allowed under this chapter for any amount taken
into account in determining the credit allowed under this
section.
‘‘(e) CROSS REFERENCES.—
‘‘For transfer of appreciated property to a polit-
ical 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 25B the following new item:
‘‘Sec. 25C. 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. 3. DEDUCTION FOR CERTAIN POLITICAL CONTRIBU-
TIONS.
(a) IN GENERAL.—Part VII of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended