Title: Supporting Charitable Institutions Act of 2020
Policy area: Taxation

Summary:
Supporting Charitable Institutions Act of 2020
This bill allow a new tax credit for charitable contributions made in cash during 2020 to a charitable organization for relief efforts connected to COVID-19 (i.e., the coronavirus disease 2019). The credit is limited to 24% of contributions not exceeding $4,000 for an individual taxpayer, $6,000 for a head of household, and $8,000 for a married couple filing a joint return.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3525 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 3525

   To allow a tax credit for certain coronavirus-related charitable 
                  contributions for taxable year 2020.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 18, 2020

 Mrs. Shaheen introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To allow a tax credit for certain coronavirus-related charitable 
                  contributions for taxable year 2020.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Supporting Charitable Institutions 
Act of 2020''.

SEC. 2. CREDIT FOR CORONAVIRUS-RELATED CHARITABLE CONTRIBUTIONS.

    (a) In General.--In the case of an individual who elects the 
application of this section, there shall be allowed as a credit against 
the tax imposed by chapter 1 of the Internal Revenue Code of 1986 for 
the first taxable year ending on or after December 31, 2020, an amount 
equal to 24 percent of so much of the qualified contributions made by 
the individual as does not exceed--
            (1) $8,000, in the case of a joint return;
            (2) $6,000, in the case of a head of household (as defined 
        in section 2(b) of the Internal Revenue Code of 1986); and
            (3) $4,000, in any other case.
    (b) Qualified Contributions.--
            (1) In general.--For purposes of this section, the term 
        ``qualified contributions'' means the charitable contributions 
        (as defined in section 170(c) of the Internal Revenue Code of 
        1986) made by an individual which are paid--
                    (A) in cash;
                    (B) during calendar year 2020;
                    (C) to an organization described in section 
                170(b)(1)(A) of such Code; and
                    (D) for relief efforts connected to the SARS-CoV-2 
                or Coronavirus Disease 2019 (abbreviated as COVID-19) 
                outbreak in the United States.
            (2) Contemporaneous written acknowledgement.--Such term 
        shall not include any contribution unless the taxpayer obtains 
        from such organization contemporaneous written acknowledgment 
        (within the meaning of section 170(f)(8) of such Code) that 
        such contribution was used (or is to be used) for relief 
        efforts described in paragraph (1)(D).
            (3) Exception.--Such term shall not include a contribution 
        by a donor if the contribution is--
                    (A) to an organization described in section 
                509(a)(3) of the Internal Revenue Code of 1986; or
                    (B) for the establishment of a new, or maintenance 
                of an existing, donor advised fund (as defined in 
                section 4966(d)(2) of such Code).
    (c) Credit Rules.--
            (1) Credit treated as nonrefundable personal credit.--The 
        credit under this section shall be treated as a credit allowed 
        under subpart A of part IV of subchapter A of chapter 1 of the 
        Internal Revenue Code of 1986.
            (2) Carryforwards of unused credit.--If the credit 
        allowable under subsection (a) for the taxable year exceeds the 
        limitation imposed by section 26(a) of such Code for such 
        taxable year, reduced by the sum of the credits allowable under 
        such subpart A (other than this section), such excess shall be 
        treated as excess charitable contributions for such year for 
        purposes of section 170 of such Code and carried forward 
        according to the rules of section 170(d)(1) of such Code.
            (3) Coordination with deduction for charitable 
        contributions.--Except as provided in paragraph (2), any 
        qualified contribution with respect to which a credit is 
        allowed under subsection (a) shall not be treated as a 
        charitable contribution for purposes of the deduction 
        determined under section 170 of the Internal Revenue Code of 
        1986.
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