‘‘(2) in which more than 1,200 households are
surveyed.’’.
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 25A the following new
section:
‘‘SEC. 25B. 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) 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 indi-
vidual 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 polit-
ical party as designated by the State committee
of such party designated under subparagraph
(D).
‘‘(2) NEWSLETTER
FUND.—The term ‘news-
letter fund’ means a fund described in section
527(g)(1).
‘‘(3) 
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.
‘‘(4) 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.
‘‘(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 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 25A the following new item:
‘‘Sec. 25B. 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. PRESIDENTIAL CAMPAIGN FUND.
(a) REPEAL OF PROVISIONS CONCERNING PRESI-
DENTIAL CAMPAIGN FUND.—The following provisions of
the Internal Revenue Code of 1986 are hereby repealed:
(1) Part VIII of subchapter A of chapter 61 of
subtitle F of such Code (relating to designation of
income tax payments to Presidential Election Cam-
paign Fund).
(2) Subtitle H (relating to financing of Presi-
dential election campaigns).
(b) CONFORMING AMENDMENTS.—
(1) TABLE OF PARTS.—The table of parts of
subchapter A of chapter 61 of subtitle F of such
Code is amended by striking the item relating to
part VIII.
(2) TABLE OF SUBTITLES.—The table of sub-
titles of such Code is amended by striking the item
relating to subtitle H.
(c) EFFECTIVE DATES.—
(1) DESIGNATION OF INCOME TAX PAYMENTS
TO
FUND.—The amendment made by subsection
(a)(1) applies to taxable years beginning after De-
cember 31, 1999.
the Congress may not accept contributions with respect
to an election cycle from persons other than local indi-
vidual residents totaling in excess of the total of contribu-
tions accepted from local individual residents (as deter-
mined on the basis of the most recent information included
in reports pursuant to section 304(d).
‘‘(2) In determining the amount of contributions ac-
cepted by a candidate for purposes of this subsection, con-
tributions of the candidate’s personal funds shall be sub-
ject to the following rules:
‘‘(A) To the extent that the amount of the con-
tribution does not exceed the limitation on contribu-
tions made by an individual under subsection
(a)(1)(A), such contribution shall be treated as any
other contribution.
‘‘(B) The portion (if any) of the contribution
which exceeds the limitation on contributions which
may be made by an individual under subsection
(a)(1)(A) shall be allocated in accordance with para-
graph (8).
‘‘(3) In determining the amount of contributions ac-
cepted by a candidate for purposes of this subsection, con-
tributions from a political party or a political party com-
mittee shall be allocated in accordance with paragraph (8).
‘‘(4) In determining the amount of contributions ac-
cepted by a candidate for purposes of this subsection, any
funds remaining in the candidate’s campaign account
after the filing of the post-general election report under
section 304(a)(2)(A)(ii) for the most recent general elec-
tion shall be allocated in accordance with paragraph (8).
‘‘(5) In determining the amount of contributions ac-
cepted by a candidate for purposes of this subsection, any
contributions accepted pursuant to subsection (j) which
are from persons other than local individual residents shall
be allocated in accordance with paragraph (8).
‘‘(6)(A) Any candidate who accepts contributions that
exceed the limitation under this subsection, as determined
on the basis of information included in reports pursuant
to section 304(d), shall pay to the Commission at the time
of the filing of the report which contains the information,
for deposit in the Treasury, an amount equal to 3 times
the amount of the excess contributions (or, in the case
of a candidate described in subparagraph (C), an amount
equal to 5 times the amount of the excess contributions
plus a civil penalty in an amount determined by the Com-
mission).
‘‘(B) Any amounts paid by a candidate under this
paragraph shall be paid from contributions subject to the
limitations and prohibitions of this title, including the lim-
itation under this subsection.
‘‘(C) A candidate described in this subparagraph is
a candidate who accepts contributions that exceed the lim-
itation under this subsection as of the last day of the pe-
riod ending on the 20th day before an election or any pe-
riod ending after such 20th day and before or on the 20th
day after such election.
‘‘(7) As used in this subsection, the term ‘local indi-
vidual resident’ means an individual who resides in the
State in which the election involved is held.
‘‘(8) For purposes of this subsection, any amounts
allocated in accordance with this paragraph shall be allo-
cated as follows:
‘‘(A) 50 percent of such amounts shall be
deemed to be contributions from local individual
residents.
‘‘(B) 50 percent of such amounts shall be
deemed to be contributions from persons other than
local individual residents.’’.
(b) REPORTING REQUIREMENTS.—Section 304 of
such Act (2 U.S.C. 434) is amended by adding at the end
the following new subsection:
‘‘(d) Each principal campaign committee of a can-
didate for the Senate or the House of Representatives
shall include the following information in reports filed
under subsection (a)(2) and subsection (a)(6)(A):
‘‘(1) With respect to each report filed under
such subsection—
‘‘(A) the total contributions received by the
committee with respect to the election cycle in-
volved from local individual residents (as de-
fined in section 315(i)(7)), as of the last day of
the period covered by the report;
‘‘(B) the total contributions received by the
committee with respect to the election cycle in-
volved which are not from local individual resi-
dents, as of the last day of the period covered
by the report; and
‘‘(C) a certification as to whether the con-
tributions reported comply with the limitation
under section 315(i), as of the last day of the
period covered by the report.
‘‘(2) In the case of the first report filed under
such subsection which covers the period which begins
19 days before an election and ends 20 days after
the election—
‘‘(A) the total contributions received by the
committee with respect to the election cycle in-
volved from local individual residents (as de-
fined in section 315(i)(7)), as of the last day of
such period;
‘‘(B) the total contributions received by the
committee with respect to the election cycle in-
volved which are not from local individual resi-
dents, as of the last day of such period; and
‘‘(C) a certification as to whether the con-
tributions reported comply with the limitation
under section 315(i), as of the last day of such
period.’’.
SEC. 5. PROHIBITING BUNDLING OF CONTRIBUTIONS TO
CANDIDATES BY POLITICAL ACTION COMMIT-
TEES AND LOBBYISTS.
Section 316 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 441b) is amended by adding at the end
the following new subsection:
‘‘(c)(1) No political action committee or person re-
quired to register under the Lobbying Disclosure Act of
1995 (2 U.S.C. 1601 et seq.) may act as an intermediary
or conduit with respect to a contribution to a candidate
for Federal office.
‘‘(2) In this subsection, the term ‘political action com-
mittee’ means any political committee which is not—
‘‘(A) the principal campaign committee of a
candidate; or
‘‘(B) a political party committee.’’.
SEC. 6. MODIFICATION OF LIMITATIONS ON CONTRIBU-
TIONS WHEN CANDIDATES SPEND OR CON-
TRIBUTE LARGE AMOUNTS OF PERSONAL
FUNDS.
(a) IN GENERAL.—Section 315 of the Federal Elec-
tion Campaign Act of 1971 (2 U.S.C. 441a), as amended
by section 4(a), is further amended by adding at the end
the following new subsection:
‘‘(j)(1) Notwithstanding subsection (a), if in a gen-
eral election a House candidate makes expenditures of per-
sonal funds (including contributions by the candidate to
the candidate’s authorized campaign committee) in an
amount in excess of the amount of the limitation estab-
lished under subsection (a)(1)(A) and less than or equal
to $150,000 (as reported under section 304(a)(2)(A)), a
political party committee may make contributions to an
opponent of the House candidate without regard to any
limitation otherwise applicable to such contributions under
subsection (a), except that the opponent may not accept
aggregate contributions under this paragraph in an
amount greater than the greatest amount of personal
funds expended (including contributions to the candidate’s
authorized campaign committee) by any House candidate
(other than such opponent) with respect to the election
uals) shall not apply to contributions to the can-
didate or to any opponent of the candidate, except
that neither the candidate or any opponent may ac-
cept aggregate contributions under this subpara-
graph in an amount greater than the greatest
amount of personal funds (including contributions to
the candidate’s authorized campaign committee) ex-
pended by any House candidate with respect to the
election (as reported in a notification submitted
under section 304(a)(6)(B)).
‘‘(3) In this subsection, the term ‘House candidate’
means a candidate in an election for the office of Rep-
resentative in, or Delegate or Resident Commissioner to,
the Congress.’’.
(b) NOTIFICATION OF EXPENDITURES OF PERSONAL
FUNDS.—Section 304(a)(6) of such Act (2 U.S.C.
434(a)(6)) is amended—
(1) by redesignating subparagraph (B) as sub-
paragraph (C); and
(2) by inserting after subparagraph (A) the fol-
lowing new subparagraph:
‘‘(B)(i) The principal campaign committee of a
House candidate (as defined in section 315(j)(3)) shall
submit the following notifications relating to expenditures
of personal funds by such candidate (including contribu-
tions by the candidate to such committee):
‘‘(I) A notification of the first such expenditure
(or contribution) by which the aggregate amount of
personal funds expended (or contributed) with re-
spect to an election exceeds the amount of the limi-
tation established under section 315(a)(1)(A) for
elections in the year involved.
‘‘(II) A notification of each such expenditure
(or contribution) which, taken together with all such
expenditures (and contributions) in any amount not
included in the most recent report under this sub-
paragraph, totals $5,000 or more.
‘‘(III) A notification of the first such expendi-
ture (or contribution) by which the aggregate
amount of personal funds expended with respect to
the election exceeds the level applicable under sec-
tion 315(j)(2) for elections in the year involved.
‘‘(ii) Each of the notifications submitted under clause
(i)—
‘‘(I) shall be submitted not later than 24 hours
after the expenditure or contribution which is the
subject of the notification is made;
‘‘(II) shall include the name of the candidate,
the office sought by the candidate, and the date of
the expenditure or contribution and amount of the
expenditure or contribution involved; and
‘‘(III) shall include the total amount of all such
expenditures and contributions made with respect to
the same election as of the date of expenditure or
contribution which is the subject of the notifica-
tion.’’.
SEC. 7. DEFINITION AMENDMENT.
Paragraph (19) of section 301 of the Federal Elec-
tion Campaign Act of 1971 (2 U.S.C. 431(19)) is amend-
ed to read as follows:
‘‘(19) The term ‘expressly advocating’ means that—
‘‘(A) the qualifications, views, or fitness for of-
fice of the candidate are discussed; or
‘‘(B) a voter is urged to vote for or against the
specified candidate.’’.
SEC. 8. REDUCTION IN LIMITATION AMOUNT APPLICABLE
TO CONTRIBUTIONS BY MULTICANDIDATE
POLITICAL COMMITTEES TO CANDIDATES.
Section 315(a)(2)(A) of the Federal Election Cam-
paign Act of 1971 (2 U.S.C. 441a(a)(2)(A)) is amended
by striking ‘‘$5,000’’ and inserting ‘‘$2,000’’.
SEC. 9. EFFECTIVE DATE.
Except as otherwise provided, the amendments made
by this Act shall apply with respect to elections occurring
after December 31, 2000.
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