I
104TH CONGRESS
1ST SESSION
H. R. 1493
To amend the Internal Revenue Code of 1986 to allow nonitemizers a deduc-
tion for a portion of their charitable contributions and to exempt the
charitable contribution deduction from the overall limitation on itemized
deductions.
IN THE HOUSE OF REPRESENTATIVES
APRIL 7, 1995
Mr. CRANE (for himself, Mr. RANGEL, and Mr. COX) 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 allow non-
itemizers a deduction for a portion of their charitable
contributions and to exempt the charitable contribution
deduction from the overall limitation on itemized deduc-
tions.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. DEDUCTION FOR PORTION OF CHARITABLE
CONTRIBUTIONS TO BE ALLOWED TO INDI-
VIDUALS WHO DO NOT ITEMIZE DEDUCTIONS.
(a) IN GENERAL.—Section 170 of the Internal Reve-
nue Code of 1986 (relating to charitable, etc., contribu-
tions and gifts) is amended by redesignating subsection
(m) as subsection (n) and by inserting after subsection
(l) the following new subsection:
‘‘(m) DEDUCTION FOR INDIVIDUALS NOT ITEMIZING
DEDUCTIONS.—In the case of an individual who does not
itemize his deductions for the taxable year, the amount
allowable under subsection (a) for the taxable year shall
be taken into account as a direct charitable deduction
under section 63 to the extent such amount exceeds
$1,000 ($2,000 in the case of a joint return).’’
(b) DIRECT CHARITABLE DEDUCTION.—
(1) IN GENERAL.—Subsection (b) of section 63
of such Code is amended by striking ‘‘and’’ at the
end of paragraph (1), by striking the period at the
end of paragraph (2) and inserting ‘‘, and’’, and by
adding at the end thereof the following new para-
graph:
‘‘(3) the direct charitable deduction.’’
(2) DEFINITION.—Section 63 of such Code is
amended by redesignating subsection (g) as sub-
section (h) and by inserting after subsection (f) the
following new subsection:
‘‘(g) DIRECT CHARITABLE DEDUCTION.—For pur-
poses of this section, the term ‘direct charitable deduction’
means that portion of the amount allowable under section
170(a) which is taken as a direct charitable deduction for
the taxable year under section 170(m).’’
(3) CONFORMING AMENDMENT.—Subsection (d)
of section 63 of such Code is amended by striking
‘‘and’’ at the end of paragraph (1), by striking the
period at the end of paragraph (2) and inserting ‘‘,
and’’, and by adding at the end thereof the following
new paragraph:
‘‘(3) the direct charitable deduction.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1995.
SEC. 2. CHARITABLE CONTRIBUTION DEDUCTION NOT SUB-
JECT TO OVERALL LIMITATION ON ITEMIZED
DEDUCTIONS.
(a) IN GENERAL.—Subsection (c) of section 68 of the
Internal Revenue Code of 1986 (relating to overall limita-
tion on itemized deductions) is amended by striking ‘‘and’’
at the end of paragraph (2), by striking the period at the
end of paragraph (3) and inserting ‘‘, and’’, and by adding
at the end thereof the following new paragraph:
‘‘(4) the deduction under section 170 (relating
to charitable, etc., contributions and gifts).’’
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to taxable years beginning after
December 31, 1995.
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