I
104TH CONGRESS
1ST SESSION
H. R. 733
To amend the Internal Revenue Code of 1986 to make permanent the section
170(e)(5) rules pertaining to gifts of publicly-traded stock to certain
private foundations, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 30, 1995
Mr. JACOBS (for himself and Mr. CAMP) 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 make
permanent the section 170(e)(5) rules pertaining to gifts
of publicly-traded stock to certain private foundations,
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. GIFTS OF QUALIFIED APPRECIATED STOCK TO
PRIVATE FOUNDATIONS.
(a) IN GENERAL.—Paragraph (5) of section 170(e)
of the Internal Revenue Code of 1986 is amended by strik-
ing subparagraph (D).
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to contributions made after De-
cember 31, 1994.
SEC. 2. PRIVATE FOUNDATION GRANTS TO FOREIGN ORGA-
NIZATIONS TREATED AS PRIVATE FOUNDA-
TIONS.
(a) IN GENERAL.—Paragraph (3) of section 4942(g)
of the Internal Revenue Code of 1986 is amended to read
as follows:
‘‘(3) CERTAIN
CONTRIBUTIONS
TO
SECTION
501(c)(3) ORGANIZATIONS.—For purposes of this sec-
tion, the term ‘qualifying distribution’ includes a
contribution to a section 501(c)(3) organization de-
scribed in paragraph (1)(A) (i) or (ii) if—
‘‘(A) not later than the close of the first
taxable year after its taxable year in which such
contribution is received—
‘‘(i) such organization makes a dis-
tribution equal to the amount of such con-
tribution and such distribution is a qualify-
ing distribution (within the meaning of
paragraph (1) or (2), without regard to
this paragraph) which is treated under
subsection (h) as a distribution out of cor-
pus (or would be so treated if such section
501(c)(3) organization were a private foun-
dation which is not an operating founda-
tion), or
‘‘(ii) in the case of a grant to a for-
eign organization that is not controlled (di-
rectly or indirectly) by the foundation or 1
or more disqualified persons (as defined in
section 4946) with respect to the founda-
tion, such organization makes expenditures
equal to the amount of such contribution
to accomplish 1 or more purposes de-
scribed in section 170(c)(2)(B) and the
grantor foundation exercises expenditure
responsibility with respect to the grant (as
defined in section 4945(h)), and
‘‘(B) the private foundation making the
contribution obtains adequate records or other
sufficient evidence from such organization
showing that the requirements of subparagraph
(A) are satisfied.’’
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to taxable years beginning after
December 31, 1994.
SEC. 3. CHANGING DUE DATE FOR FIRST QUARTER ESTI-
MATED TAX PAYMENTS BY PRIVATE FOUNDA-
TIONS.
(a) IN GENERAL.—Paragraph (3) of section 6655(g)
of the Internal Revenue Code of 1986 is amended by in-
serting after subparagraph (C) the following new subpara-
graph:
‘‘(D) In the case of any private foundation,
subsection (c)(2) shall be applied by substitut-
ing ‘May 15’ for ‘April 15 ’ ’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to taxable years beginning after
December 31, 1995.
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