†
HR 4297 EAS
SEC. 111. DEDUCTION FOR CORPORATE DONATIONS OF
COMPUTER TECHNOLOGY AND EQUIPMENT.
(a) IN GENERAL.—Section 170(e)(6)(G) is amended by
striking ‘‘2005’’ and inserting ‘‘2007’’.
(b) EFFECTIVE DATE.—The amendment made by this
section shall apply to taxable years beginning after Decem-
ber 31, 2005.
SEC. 112. ABOVE-THE-LINE DEDUCTION FOR CERTAIN EX-
PENSES OF ELEMENTARY AND SECONDARY
SCHOOL TEACHERS.
(a) IN
GENERAL.—Subparagraph (D) of section
62(a)(2) is amended by striking ‘‘or 2005’’ and inserting
‘‘2005, 2006, or 2007’’.
(b) EFFECTIVE DATE.—The amendment made by this
section shall apply to taxable years beginning after Decem-
ber 31, 2005.
SEC. 113. EXPENSING OF BROWNFIELDS REMEDIATION
COSTS.
(a) EXTENSION.—Subsection (h) of section 198 is
amended by striking ‘‘2005’’ and inserting ‘‘2007’’.
(b) EXPANSION.—Section 198(d)(1) (defining haz-
ardous substance) is amended by striking ‘‘and’’ at the end
of subparagraph (A), by striking the period at the end of
subparagraph (B) and inserting ‘‘, and’’, and by adding
at the end the following new subparagraph:
†
HR 4297 EAS
‘‘(C) any petroleum product (as defined in
section 4612(a)(3)).’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to expenditures paid or incurred after
December 31, 2005.
SEC. 114. TAX INCENTIVES FOR INVESTMENT IN THE DIS-
TRICT OF COLUMBIA.
(a) DESIGNATION OF ZONE.—
(1) IN GENERAL.—Subsection (f) of section 1400
is amended by striking ‘‘2005’’ both places it appears
and inserting ‘‘2006’’.
(2) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to periods beginning
after December 31, 2005.
(b) TAX-EXEMPT ECONOMIC DEVELOPMENT BONDS.—
(1) IN
GENERAL.—Subsection (b) of section
1400A is amended by striking ‘‘2005’’ and inserting
‘‘2006’’.
(2) EFFECTIVE DATE.—The amendment made by
this subsection shall apply to bonds issued after De-
cember 31, 2005.
(c) ZERO PERCENT CAPITAL GAINS RATE.—
(1) IN
GENERAL.—Subsection (b) of section
1400B is amended by striking ‘‘2006’’ each place it
appears and inserting ‘‘2007’’.
†
HR 4297 EAS
(2) CONFORMING AMENDMENTS.—
(A) Section 1400B(e)(2) is amended—
(i) by striking ‘‘2010’’ and inserting
‘‘2011’’, and
(ii) by striking ‘‘2010’’ in the heading
thereof and inserting ‘‘2011’’.
(B) Section 1400B(g)(2) is amended by
striking ‘‘2010’’ and inserting ‘‘2011’’.
(C) Section 1400F(d) is amended by strik-
ing ‘‘2010’’ and inserting ‘‘2011’’.
(3) EFFECTIVE DATES.—
(A) EXTENSION.—The amendments made
by paragraph (1) shall apply to acquisitions
after December 31, 2005.
(B) 
CONFORMING
AMENDMENTS.—The
amendments made by paragraph (2) shall take
effect on the date of the enactment of this Act.
(d) FIRST-TIME HOMEBUYER CREDIT.—
(1) IN
GENERAL.—Subsection (i) of section
1400C is amended by striking ‘‘2006’’ and inserting
‘‘2007’’.
(2) EFFECTIVE DATE.—The amendment made by
this subsection shall apply to property purchased
after December 31, 2005.
†
HR 4297 EAS
SEC. 115. INDIAN EMPLOYMENT TAX CREDIT.
(a) IN GENERAL.—Section 45A(f) is amended by strik-
ing ‘‘2005’’ and inserting ‘‘2007’’.
(b) EFFECTIVE DATE.—The amendment made by this
section shall apply to taxable years beginning after Decem-
ber 31, 2005.
SEC. 116. ACCELERATED DEPRECIATION FOR BUSINESS
PROPERTY ON INDIAN RESERVATION.
(a) IN GENERAL.—Section 168(j)(8) is amended by
striking ‘‘2005’’ and inserting ‘‘2007’’.
(b) EFFECTIVE DATE.—The amendment made by this
section shall apply to property placed in service after De-
cember 31, 2005.
SEC. 117. FIFTEEN-YEAR STRAIGHT-LINE COST RECOVERY
FOR QUALIFIED LEASEHOLD IMPROVEMENTS
AND 
QUALIFIED 
RESTAURANT 
IMPROVE-
MENTS.
(a) IN GENERAL.—Clauses (iv) and (v) of section
168(e)(3)(E) are each amended by striking ‘‘2006’’ and in-
serting ‘‘2008’’.
(b) EFFECTIVE DATE.—The amendments made by this
section shall apply to property placed in service after De-
cember 31, 2005.
†
HR 4297 EAS
SEC. 118. EXTENSION OF FULL CREDIT FOR QUALIFIED
ELECTRIC VEHICLES.
(a) IN GENERAL.—Section 30(e) is amended by strik-
ing ‘‘2006’’ and inserting ‘‘2007’’.
(b) REPEAL OF PHASEOUT.—Section 30(b) (relating
to limitations) is amended by striking paragraph (2) and
by redesignating paragraph (3) as paragraph (2).
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to taxable years beginning after Decem-
ber 31, 2005.
SEC. 119. APPLICATION OF EGTRRA SUNSET TO THIS TITLE.
Each amendment made by this title shall be subject
to title IX of the Economic Growth and Tax Relief Rec-
onciliation Act of 2001 to the same extent and in the same
manner as the provision of such Act to which such amend-
ment relates.
TITLE 
II—PROVISIONS 
RELAT-
ING TO CHARITABLE DONA-
TIONS
Subtitle A—Charitable Giving
Incentives
SEC. 201. CHARITABLE DEDUCTION FOR NONITEMIZERS.
(a) IN GENERAL.—Section 170 (relating to charitable,
etc., contributions and gifts) is amended by redesignating
subsection (o) as subsection (p) and by inserting after sub-
section (n) the following new subsection:
†
HR 4297 EAS
‘‘(o) DEDUCTION FOR INDIVIDUALS NOT ITEMIZING
DEDUCTIONS.—In the case of an individual who does not
itemize deductions for any taxable year beginning after De-
cember 31, 2005, and before January 1, 2008, there shall
be taken into account as a direct charitable deduction under
section 63 an amount equal to the amount allowable under
subsection (a) for the taxable year for cash contributions
(determined without regard to any carryover).’’.
(b) DIRECT CHARITABLE DEDUCTION.—
(1) IN GENERAL.—Subsection (b) of section 63
(defining taxable income) is amended by striking
‘‘and’’ at the end of paragraph (1), by striking the pe-
riod at the end of paragraph (2) and inserting ‘‘,
and’’, and by adding at the end the following new
paragraph:
‘‘(3) the direct charitable deduction.’’.
(2) DEFINITION.—Section 63 is amended by re-
designating subsection (g) as subsection (h) and by
inserting after subsection (f) the following new sub-
section:
‘‘(g) DIRECT CHARITABLE DEDUCTION.—For purposes
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 tax-
able year under section 170(o).’’.
†
HR 4297 EAS
(3) CONFORMING AMENDMENT.—Subsection (d)
of section 63 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 the following new paragraph:
‘‘(3) the direct charitable deduction.’’.
(c) FLOOR ON CHARITABLE CONTRIBUTIONS BY INDI-
VIDUALS.—Section 170(a) is amended by adding at the end
the following new paragraph:
‘‘(4) DOLLAR FLOOR ON CHARITABLE CONTRIBU-
TIONS BY INDIVIDUALS.—In the case of an individual,
for any taxable year beginning after December 31,
2005, and before January 1, 2008, the amount other-
wise allowed as a deduction under paragraph (1)
shall be allowed only to the extent that such amount
exceeds $210 ($420 in the case of a joint return).’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall apply to taxable years beginning after Decem-
ber 31, 2005.
SEC. 202. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RE-
TIREMENT PLANS FOR CHARITABLE PUR-
POSES.
(a) IN GENERAL.—Subsection (d) of section 408 (relat-
ing to individual retirement accounts) is amended by add-
ing at the end the following new paragraph:
†
HR 4297 EAS
‘‘(8) DISTRIBUTIONS
FOR
CHARITABLE
PUR-
POSES.—
‘‘(A) IN GENERAL.—No amount shall be in-
cludible in gross income by reason of a qualified
charitable distribution.
‘‘(B) QUALIFIED
CHARITABLE
DISTRIBU-
TION.—For purposes of this paragraph, the term
‘qualified charitable distribution’ means any dis-
tribution from an individual retirement plan
(other than a plan described in subsection (k) or
(p))—
‘‘(i) which is made directly by the
trustee—
‘‘(I) to an organization described
in section 170(c), or
‘‘(II) to a split-interest entity,
and
‘‘(ii) which is made on or after—
‘‘(I) in the case of any distribu-
tion described in clause (i)(I), the date
that the individual for whose benefit
the plan is maintained has attained
age 701⁄2, and
‘‘(II) in the case of any distribu-
tion described in clause (i)(II), the
†
HR 4297 EAS
date that such individual has attained
age 591⁄2.
A distribution shall be treated as a qualified
charitable distribution only to the extent that the
distribution would be includible in gross income
without regard to subparagraph (A) and, in the
case of a distribution to a split-interest entity,
only if no person holds an income interest in the
amounts in the split-interest entity attributable
to such distribution other than one or more of
the following: the individual for whose benefit
such plan is maintained, the spouse of such indi-
vidual, or any organization described in section
170(c).
‘‘(C) CONTRIBUTIONS MUST BE OTHERWISE
DEDUCTIBLE.—For 
purposes 
of 
this
paragraph—
‘‘(i) DIRECT CONTRIBUTIONS.—A dis-
tribution to an organization described in
section 170(c) shall be treated as a qualified
charitable distribution only if a deduction
for the entire distribution would be allow-
able under section 170 (determined without
regard to subsections (a)(4) and (b) thereof
and this paragraph).
†
HR 4297 EAS
‘‘(ii) SPLIT-INTEREST GIFTS.—A dis-
tribution to a split-interest entity shall be
treated as a qualified charitable distribu-
tion only if a deduction for the entire value
of the interest in the distribution for the use
of an organization described in section
170(c) would be allowable under section 170
(determined without regard to subsections
(a)(4) and (b) thereof and this paragraph).
‘‘(D) APPLICATION
OF
SECTION
72.—Not-
withstanding section 72, in determining the ex-
tent to which a distribution is a qualified chari-
table distribution, the entire amount of the dis-
tribution shall be treated as includible in gross
income without regard to subparagraph (A) to
the extent that such amount does not exceed the
aggregate amount which would have been so in-
cludible if all amounts distributed from all indi-
vidual retirement plans were treated as 1 con-
tract under paragraph (2)(A) for purposes of de-
termining the inclusion of such distribution
under section 72. Proper adjustments shall be
made in applying section 72 to other distribu-
tions in such taxable year and subsequent tax-
able years.
†
HR 4297 EAS
‘‘(E) SPECIAL RULES FOR SPLIT-INTEREST
ENTITIES.—
‘‘(i) 
CHARITABLE
REMAINDER
TRUSTS.—Notwithstanding section 664(b),
distributions made from a trust described in
subparagraph (G)(i) shall be treated as or-
dinary income in the hands of the bene-
ficiary to whom is paid the annuity de-
scribed in section 664(d)(1)(A) or the pay-
ment described in section 664(d)(2)(A).
‘‘(ii) POOLED
INCOME
FUNDS.—No
amount shall be includible in the gross in-
come of a pooled income fund (as defined in
subparagraph (G)(ii)) by reason of a quali-
fied charitable distribution to such fund,
and all distributions from the fund which
are attributable to qualified charitable dis-
tributions shall be treated as ordinary in-
come to the beneficiary.
‘‘(iii) CHARITABLE GIFT ANNUITIES.—
Qualified charitable distributions made for
a charitable gift annuity shall not be treat-
ed as an investment in the contract.
‘‘(F) DENIAL
OF
DEDUCTION.—Qualified
charitable distributions shall not be taken into
†
HR 4297 EAS
account in determining the deduction under sec-
tion 170.
‘‘(G) SPLIT-INTEREST ENTITY DEFINED.—
For purposes of this paragraph, the term ‘split-
interest entity’ means—
‘‘(i) a charitable remainder annuity
trust or a charitable remainder unitrust (as
such terms are defined in section 664(d))
which must be funded exclusively by quali-
fied charitable distributions,
‘‘(ii) a pooled income fund (as defined
in section 642(c)(5)), but only if the fund
accounts separately for amounts attrib-
utable to qualified charitable distributions,
and
‘‘(iii) a charitable gift annuity (as de-
fined in section 501(m)(5)).
‘‘(H) TERMINATION.—This paragraph shall
not apply to distributions made in taxable years
beginning after December 31, 2007.’’.
(b) MODIFICATIONS RELATING TO INFORMATION RE-
TURNS BY CERTAIN TRUSTS.—
(1) RETURNS.—Section 6034 (relating to returns
by trusts described in section 4947(a)(2) or claiming