I
107TH CONGRESS
1ST SESSION
H. R. 824
To amend the Internal Revenue Code of 1986 to allow individuals who
do not itemize their deductions a deduction for a portion of their chari-
table contributions, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 1, 2001
Ms. DUNN (for herself, Mr. DUNCAN, Mr. SIMPSON, Mr. WHITFIELD, Mr.
DEAL of Georgia, Ms. HART, Mr. PETERSON of Pennsylvania, Mr.
CRENSHAW, Mr. ENGLISH, Mr. PASCRELL, Mr. WATTS of Oklahoma, Mr.
GREENWOOD, Mr. BAIRD, Mr. OTTER, Mr. TAYLOR of North Carolina,
Mr. SCHAFFER, and Mr. SOUDER) 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 indi-
viduals who do not itemize their deductions a deduction
for a portion of their charitable contributions, 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. SHORT TITLE.
This Act may be cited as the ‘‘Neighbor to Neighbor
Act’’.
SEC. 2. DEDUCTION FOR PORTION OF CHARITABLE CON-
TRIBUTIONS TO BE ALLOWED TO INDIVID-
UALS WHO DO NOT ITEMIZE DEDUCTIONS.
(a) IN GENERAL.—Section 170 of the Internal Rev-
enue 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.—
‘‘(1) IN GENERAL.—In the case of an individual
who does not itemize the individual’s deductions for
the taxable year, the amount allowable under sub-
section (a) shall be taken into account as a direct
charitable deduction under section 63.
‘‘(2) LIMITATION.—The portion of the amount
allowable under subsection (a) to which paragraph
(1) applies for the taxable year shall not exceed the
amount in effect for such taxable year under section
63(c)(2)(C) (section 63(c)(2)(A) in the case of a
joint return under section 6013).’’.
(b) DIRECT CHARITABLE DEDUCTION.—
(1) IN GENERAL.—Section 63(b) of such Code
(relating to individuals who do not itemize their de-
ductions) 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 add-
ing at the end the following new paragraph:
‘‘(3) the direct charitable deduction.’’.
(2) DEFINITION.—Section 63 of such Code (re-
lating to taxable income defined) 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 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.—Section 63(d)
of such Code (defining itemized deductions) 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) TIME WHEN CONTRIBUTIONS DEEMED MADE.—
Section 170(f) of such Code (relating to disallowance of
deduction in certain cases and special rules) is amended
by adding at the end the following new paragraph:
‘‘(10) TIME
WHEN
CONTRIBUTIONS
DEEMED
PAID.—For purposes of this section, in the case of
an individual, a taxpayer shall be deemed to have
paid a charitable contribution on the last day of the
preceding taxable year if the contribution is paid on
account of such taxable year and is paid not later
than the time prescribed by law for filing the return
for such taxable year (not including extensions
thereof).’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
SEC. 3. CHARITABLE DEDUCTION EXCEPTION TO OVERALL
LIMITATION ON ITEMIZED DEDUCTIONS.
(a) IN GENERAL.—Subsection (c) of section 68 of the
Internal Revenue Code of 1986 (relating to exception for
certain 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 the following:
‘‘(4) the deduction under section 170 (relating
to charitable, etc., contributions and gifts).’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years beginning after
December 31, 2000.