VOLVED.—Section 315 of the Federal Election Campaign
Act of 1971 (2 U.S.C. 441a) is amended by adding at
the end the following new subsection:
‘‘(i) A candidate for the office of Senator or Rep-
resentative in, or Delegate or Resident Commissioner to,
the Congress may not accept contributions with respect
to an election cycle from persons other than individuals
who reside in the State involved in excess of the total of
contributions accepted from individuals who reside in the
State involved (as determined on the basis of the most
recent information included in reports pursuant to section
304(d)).’’.
(b) REVISION OF LIMITS ON AMOUNT THAT MAY BE
CONTRIBUTED BY INDIVIDUALS.—
(1) LIMIT ON CONTRIBUTIONS TO CANDIDATES
AND
POLITICAL
PARTIES.—Section 315(a)(1) of
such Act (2 U.S.C. 441a(a)(1)) is amended—
(A) in subparagraph (A), by striking
‘‘$1,000’’ and inserting ‘‘$2,500’’; and
(B) in subparagraph (B), by striking
‘‘$20,000’’ and inserting ‘‘$25,000’’.
(2) 
ANNUAL
AGGREGATE
LIMIT.—Section
315(a)(3) of such Act (2 U.S.C. 441a(a)(3)) is
amended by striking ‘‘$25,000 in any calendar year’’
and inserting the following: ‘‘$50,000, of which not
more than $25,000 may consist of contributions to
political committees of political parties’’.
(c) INDEXING OF AMOUNTS.—Section 315(c) of such
Act (2 U.S.C. 441a(c)) is amended by adding at the end
the following new paragraph:
‘‘(3)(A) The amount of each limitation established
under subsection (a) shall be adjusted as follows:
‘‘(i) For calendar year 1999, each such amount
shall be equal to the amount described in such sub-
section, increased (in a compounded manner) by the
percentage increase in the price index (as defined in
paragraph (2)) for 1997 and 1998.
‘‘(ii) For calendar year 2001 and each second
subsequent year, each such amount shall be equal to
the amount for the second previous year (as ad-
justed under this subparagraph), increased (in a
compounded manner) by the percentage increase in
the price index for the previous year and the second
previous year.
‘‘(B) In the case of any amount adjusted under this
subparagraph which is not a multiple of $500, the amount
shall be rounded to the nearest multiple of $500.’’.
(d) PROHIBITING BUNDLING OF CONTRIBUTIONS.—
Section 315(a)(8) of such Act (2 U.S.C. 441a(a)(8)) is
amended to read as follows:
‘‘(8) No person may make a contribution through an
intermediary or conduit, except that a person may facili-
tate a contribution by providing—
‘‘(A) advice to another person as to how the
other person may make a contribution; and
‘‘(B) addressed mailing material or similar
items to another person for use by the other person
in making a contribution.’’.
(e) PROHIBITING CONTRIBUTIONS BY INDIVIDUALS
NOT ELIGIBLE TO VOTE IN FEDERAL ELECTIONS.—Title
III of such Act (2 U.S.C. 431 et seq.) is amended by add-
ing at the end the following new section:
‘‘PROHIBITING CONTRIBUTIONS BY INDIVIDUALS NOT
ELIGIBLE TO VOTE IN FEDERAL ELECTIONS
‘‘SEC. 323. (a) IN GENERAL.—An individual who is
not eligible to vote in any election for Federal office may
not make any contribution to any candidate for election
for Federal office or to any political committee.
‘‘(b) TREATMENT OF INDIVIDUALS NOT REGISTERED
TO VOTE.—This section shall not apply with respect to
an individual who would be eligible to vote in an election
for Federal office but for the failure of the individual to
register to vote.’’.
SEC. 3. TREATMENT OF FUNDS OF POLITICAL PARTIES.
(a) BAN ON SOFT MONEY OF NATIONAL POLITICAL
PARTIES.—Title III of the Federal Election Campaign Act
of 1971 (2 U.S.C. 431 et seq.), as amended by section
2(e), is further amended by adding at the end the follow-
ing new section:
‘‘PROHIBITING USE OF NON-FEDERAL FUNDS BY
NATIONAL POLITICAL PARTIES
‘‘SEC. 324. Notwithstanding any other provision of
this title or any other provision of law, a political commit-
tee of a national political party may not solicit, expend,
or transfer any funds in support of its activities which are
not subject to the limitations, prohibitions, and reporting
requirements of this title.’’.
(b) REPEAL OF LIMITATIONS ON AMOUNT OF CO-
ORDINATED EXPENDITURES BY POLITICAL PARTIES.—
(1) IN GENERAL.—Section 315(d) of such Act
(2 U.S.C. 441a(d)) is amended by striking para-
graphs (2) and (3).
(2) 
CONFORMING
AMENDMENTS.—Section
315(d)(1) of such Act (2 U.S.C. 441a(d)(1)) is
amended—
(A) by striking ‘‘(d)(1)’’ and inserting
‘‘(d)’’; and
(B) by striking ‘‘, subject to the limitations
contained in paragraphs (2) and (3) of this sub-
section’’.
(c) REQUIRING DISCLOSURE
OF TRANSFERS
OF
FUNDS FROM NATIONAL PARTY TO STATE AND LOCAL
PARTIES.—Section 304 of such Act (2 U.S.C. 434) is
amended by adding at the end the following new sub-
section:
‘‘(d)(1) In addition to any other information required
to be reported to the Commission under this Act, each po-
litical committee of a national political party shall file a
statement with the Commission of any transfer of funds
made by the committee to a political committee of a State
or local political party.
‘‘(2) A statement required under this subsection of
a transfer of funds by a political committee shall contain
such information, and shall be filed at such time and
under such conditions, as would be required if the transfer
of funds were otherwise treated as an expenditure made
by the committee under this Act.’’.
SEC. 4. INCOME TAX CREDIT FOR CONTRIBUTIONS TO FED-
ERAL CAMPAIGNS.
(a) GENERAL RULE.—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. CONTRIBUTIONS TO FEDERAL CAMPAIGNS.
‘‘(a) GENERAL RULE.—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 Federal campaign contributions paid or incurred by the
individual during such taxable year.
‘‘(b) LIMITATIONS.—
‘‘(1) AMOUNT OF CREDIT.—The credit allowed
by subsection (a) for a taxable year 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
Federal campaign contribution, only if such con-
tribution is verified in such manner as the Secretary
shall prescribe by regulation.
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) CANDIDATE.—The term ‘candidate’ means
an individual who—
‘‘(A) publicly announces before the close of
the calendar year following the calendar year in
which the contribution or gift is paid or in-
curred that he is a candidate for nomination or
election to any Federal elective public office,
and
‘‘(B) meets the qualifications prescribed by
law to hold such office.
‘‘(2) FEDERAL CAMPAIGN CONTRIBUTION.—The
term ‘Federal campaign contribution’ means a con-