Charitable Giving Act of 2003

Bill: 108-hr-7
Sponsor: Rep. Blunt, Roy [R-MO-7]
Introduced: 2003-05-07 in the House
Policy area: Taxation
Subjects: Adoption
Agriculture and Food
Aid to dependent children
Animals
Annuities
Arts, Culture, Religion
Authorization
Blood banks
Capital
Cash welfare block grants
Charitable contributions
Charities
Child development
Child nutrition
Child welfare
Church and social problems
Church and state
Churches
College costs
Commerce
Computer software
Computers
Congregate housing
Congress
Congressional reporting requirements
Contracts
Corporate philanthropy
Corporation taxes
Counseling
Crime and Law Enforcement
Economics and Public Finance
Education
Elementary and secondary education
Elementary education
Endangered species
Environmental Protection
Evaluation research (Social action programs)
Excise tax
Families
Federal aid to housing
Federal-local relations
Federal-state relations
Finance and Financial Sector
Financial planning
Food relief
Forest conservation
Foundations
Gambling
Gasoline
Government Operations and Politics
Governmental investigations
Group homes
Habitat conservation
Health
Higher education
Homeless
Housing and Community Development
Housing finance
Income tax
Individual retirement accounts
Injunctions
International Affairs
Inventories
Investments
Judicial opinions
Jurisdiction
Labor and Employment
Landowners
Law
Libraries
Lobbying
Logging
Maternal health services
Medical savings accounts
Mothers
Nature conservation
Nursing homes
Nutrition
Parent and child
Personal budgets
Pregnant women
Public Lands and Natural Resources
Public-private partnerships
Recreation
Religion
Research
Restoration ecology
Retirement communities
Saving and investment
Science, Technology, Communications
Scientific instruments and apparatus
Secondary education
Shelters for the homeless
Small business
Social Welfare
Sports and Recreation
Stockholders
Stocks
Student housing
Tax administration
Tax auditing
Tax credits
Tax deductions
Tax exclusion
Tax penalties
Tax rates
Tax refunds
Tax returns
Tax-exempt organizations
Tax-exempt securities
Taxpayer compliance
Teenage pregnancy
Terrorism
Trusts and trustees
Unrelated business income tax
Vocational and technical education
Women
Youth services

Summary:
action_date: 2003-05-07
text: Charitable Giving Act of 2003 - Amends the Internal Revenue Code with respect to charitable giving and charitable organizations to: (1) allow a deduction for a portion of charitable contributions to individuals who do not itemize; (2) allow tax-free distributions from individual retirement accounts for charitable purposes; (3) increase the cap on corporate charitable contributions; (4) provide a special rule for charitable contributions of food inventory; (5) revise certain excise taxes related to private foundations; (6) modify the excise tax on unrelated business taxable income of charitable remainder trusts; (7) extend and expand the charitable contribution for scientific property used for research and for computer technology and equipment used for educational purposes; (8) adjust the basis of S corporation stock for certain charitable contributions; (9) suspend the tax-exempt status of terrorist organizations; (10) revise church tax inquiry provisions; (11) revise declaratory judgment remedy provisions relating to tax-exempt organizations; (12) exclude from gross income certain landowner initiatives programs to conserve endangered habitats or species; (13) repeal the grassroots expenditure limit for charitable organizations; and (14) set forth a private foundation's permitted holdings, including provisions relating to a corporation that is publicly traded and publicly controlled.
Amends title IV of the Social Security Act to authorize the Secretary of Health and Human Services to make grants to any private entity that operates a promising social services program (as defined by this Act).
Amends the Assets for Independence Act to authorize appropriations for the assets for independence programs.
Expresses the sense of Congress encouraging corporate contributions to faith-based organizations.
Amends the Runaway and Homeless Youth Act to include maternity group homes (as defined by this Act) within the program for transitional living youth projects for homeless youth. Authorizes FY 2003 and 2004 appropriations for such group homes.
action_date: 2003-09-16
text: 
Charitable Giving Act of 2003 - 
Title I: Charitable Giving Incentives
 - (Sec. 101) Amends the Internal Revenue Code to allow non-itemizers to deduct, until December 31, 2005, charitable contributions exceeding $250 but not exceeding $500. Requires a study of such amendment.
 
(Sec. 102) Allows tax-free distributions from individual retirement plans for qualified charitable distributions.
 
(Sec. 103) Phases-in an increase, from 10 to 20 percent (by 2012), on the percentage limitation on corporate charitable deductions.
 
(Sec. 104) Permits any taxpayer engaged in a trade or business, whether or not a C corporation, to claim an enhanced deduction for donations of food inventory.
 
(Sec. 105) Reduces from two to one percent the excise tax on the net investment income of private foundations that are exempt from Federal income tax.
 
Increases the self-dealing excise tax on such foundations from five to 25 percent.
 
Modifies provisions concerning the excise tax for the failure of such foundations to distribute income.
 
(Sec. 106) Revises rules concerning unrelated business taxable income of charitable remainder trusts and charitable remainder unitrusts to impose an excise tax equal to the amount of any unrelated business taxable income.
 
(Sec. 107) Makes property assembled by the taxpayer, as well as property constructed by the taxpayer, eligible for the scientific property deduction and the computer technology and equipment for educational purposes deduction.
 
(Sec. 108) Provides that the amount of a shareholder's basis reduction in the stock of an S corporation by reason of a charitable contribution made by the corporation equals the shareholder's pro rata share of the adjusted basis of the contributed property.
 
(Sec. 109) Permits an organization to be treated as a tax-exempt organization if it makes collegiate housing and infrastructure grants to tax-exempt clubs organized for pleasure and recreation, if, at the time of the grant, substantially all of the active members of the recipient club are full-time students at the college or university with which such recipient organization is associated.
 
(Sec. 110) Expands the exemption from tax applicable to the income of a charitable organization from bingo games to include other qualified games of chance, so long as the net proceeds are used to promote social welfare.
 
(Sec. 111) Exempts qualified blood collection organizations from the special fuels tax, the manufacturers excise tax, the communications excise tax, and other specified taxes.
 
(Sec. 112) Extends the replacement period for acquisitions of replacement property with respect to the nonrecognition of gain on sales of property by clubs organized for pleasure and recreation. (Maintains the current replacement period for voluntary employees' beneficiary associations, supplemental unemployment compensation benefit organizations, and group legal services plans.)
 
(Sec. 113) Exempts qualified bonds from federal guarantee prohibitions (thus, permits interest on such bonds to be tax-exempt) if the proceeds are used are used to finance one or more of the following facilities used primarily for the benefit of the elderly: (1) licensed nursing home facilities; (2) licensed or certified assisted living facilities; (3) licensed personal care facilities; or (4) continuing care retirement communities. Limits to $15 million or less the aggregate bond issuance per issuer per calendar year.
 

Title II: Tax Reform and Improvements Relating to Charitable Organizations and Programs
 - (Sec. 201) Suspends the tax-exempt status of an organization that is tax-exempt for any period during which the organization is designated or identified by U.S. Federal authorities as a terrorist organization or supporter of terrorism.
 
(Sec. 202) States that church tax inquiry procedures do not apply to information provided by the Secretary of the Treasury related to the standards for tax exemption and the requirements relating to unrelated business taxable income.
 
(Sec. 203) Extends the remedy of declaratory judgment to organizations applying for tax-exempt status.
 
(Sec. 204) Excludes from gross income landowner incentive programs to conserve threatened, endangered, or imperiled species or to protect or restore certain habitats.
 
(Sec. 205) Modifies rules concerning interest, rent, annuity, or royalty payments made by a controlled entity to a tax-exempt organization.
 
(Sec. 206) Eliminates the separate limitation for grassroots lobbying expenditures applicable to electing charities, thus providing one overall limit on lobbying expenditures.
 
(Sec. 207) Treats qualified forest conservation bonds as exempt facility bonds. Excludes from &quot;gross income&quot; income from certain timber harvesting activities conducted by a qualified organization on lands acquired with proceeds from qualified forest conservation bonds.
 

Title III: Other Provisions
 - (Sec. 301) Amends title IV of the Social Security Act to add a new part, Part F: Compassion Capital Fund.
 
Directs the Secretary of Health and Human Services to make grants to support any private entity that operates a promising social services program. Authorizes appropriations through FY 2008.
 
(Sec. 302) Amends the Assets for Independence Act to extend the Individual Development Account program through FY 2008 and to make other revisions to such program.
 
(Sec. 303) Expresses the sense of Congress that: (1) U.S. corporations are important partners with government in efforts to overcome difficult societal problems; and (2) no U.S. corporation should adopt policies that prohibit the corporation from contributing to an organization that is successfully advancing a philanthropic cause merely because such organization is faith based.
 
(Sec. 304) Amends the Runaway and Homeless Youth Act to make maternity group homes eligible for Transitional Living Project grants. Authorizes appropriations through FY 2004 for such homes. Requires a contract for the evaluation of such homes.
 
(Sec. 305) Amends part A (Block Grants to States for Temporary Assistance for Needy Families) of title IV of the Social Security Act to limit to 10 percent the amount of any grant under such part which may be used to carry out programs under title XX (Block Grants to States for Social Services) of such Act.

action_date: 2003-09-17
text: 
Charitable Giving Act of 2003 - 
Title I: Charitable Giving Incentives
 - (Sec. 101) Amends the Internal Revenue Code to allow non-itemizers to deduct, until December 31, 2005, charitable contributions exceeding $250 but not exceeding $500. Requires a study of such amendment.
 
(Sec. 102) Allows tax-free distributions from individual retirement plans for qualified charitable distributions.
 
(Sec. 103) Phases-in an increase, from 10 to 20 percent (by 2012), on the percentage limitation on corporate charitable deductions.
 
(Sec. 104) Permits any taxpayer engaged in a trade or business, whether or not a C corporation, to claim an enhanced deduction for donations of food inventory.
 
(Sec. 105) Reduces from two to one percent the excise tax on the net investment income of private foundations that are exempt from Federal income tax.
 
Increases the self-dealing excise tax on such foundations from five to 25 percent.
 
Modifies provisions concerning the excise tax for the failure of such foundations to distribute income.
 
(Sec. 106) Revises rules concerning unrelated business taxable income of charitable remainder trusts and charitable remainder unitrusts to impose an excise tax equal to the amount of any unrelated business taxable income.
 
(Sec. 107) Makes property assembled by the taxpayer, as well as property constructed by the taxpayer, eligible for the scientific property deduction and the computer technology and equipment for educational purposes deduction.
 
(Sec. 108) Provides that the amount of a shareholder's basis reduction in the stock of an S corporation by reason of a charitable contribution made by the corporation equals the shareholder's pro rata share of the adjusted basis of the contributed property.
 
(Sec. 109) Permits an organization to be treated as a tax-exempt organization if it makes collegiate housing and infrastructure grants to tax-exempt clubs organized for pleasure and recreation, if, at the time of the grant, substantially all of the active members of the recipient club are full-time students at the college or university with which such recipient organization is associated.
 
(Sec. 110) Expands the exemption from tax applicable to the income of a charitable organization from bingo games to include other qualified games of chance, so long as the net proceeds are used to promote social welfare.
 
(Sec. 111) Exempts qualified blood collection organizations from the special fuels tax, the manufacturers excise tax, the communications excise tax, and other specified taxes.
 
(Sec. 112) Extends the replacement period for acquisitions of replacement property with respect to the nonrecognition of gain on sales of property by clubs organized for pleasure and recreation. (Maintains the current replacement period for voluntary employees' beneficiary associations, supplemental unemployment compensation benefit organizations, and group legal services plans.)
 
(Sec. 113) Exempts qualified bonds from federal guarantee prohibitions (thus, permits interest on such bonds to be tax-exempt) if the proceeds are used are used to finance one or more of the following facilities used primarily for the benefit of the elderly: (1) licensed nursing home facilities; (2) licensed or certified assisted living facilities; (3) licensed personal care facilities; or (4) continuing care retirement communities. Limits to $15 million or less the aggregate bond issuance per issuer per calendar year.
 

Title II: Tax Reform and Improvements Relating to Charitable Organizations and Programs
 - (Sec. 201) Suspends the tax-exempt status of an organization that is tax-exempt for any period during which the organization is designated or identified by U.S. Federal authorities as a terrorist organization or supporter of terrorism.
 
(Sec. 202) States that church tax inquiry procedures do not apply to information provided by the Secretary of the Treasury related to the standards for tax exemption and the requirements relating to unrelated business taxable income.
 
(Sec. 203) Extends the remedy of declaratory judgment to organizations applying for tax-exempt status.
 
(Sec. 204) Excludes from gross income landowner incentive programs to conserve threatened, endangered, or imperiled species or to protect or restore certain habitats.
 
(Sec. 205) Modifies rules concerning interest, rent, annuity, or royalty payments made by a controlled entity to a tax-exempt organization.
 
(Sec. 206) Eliminates the separate limitation for grassroots lobbying expenditures applicable to electing charities, thus providing one overall limit on lobbying expenditures.
 
(Sec. 207) Treats qualified forest conservation bonds as exempt facility bonds. Excludes from "gross income" income from certain timber harvesting activities conducted by a qualified organization on lands acquired with proceeds from qualified forest conservation bonds.
 

Title III: Other Provisions
 - (Sec. 301) Amends title IV of the Social Security Act to add a new part, Part F: Compassion Capital Fund.
 
Directs the Secretary of Health and Human Services to make grants to support any private entity that operates a promising social services program. Authorizes appropriations through FY 2008.
 
(Sec. 302) Amends the Assets for Independence Act to extend the Individual Development Account program through FY 2008 and to make other revisions to such program.
 
(Sec. 303) Expresses the sense of Congress that: (1) U.S. corporations are important partners with government in efforts to overcome difficult societal problems; and (2) no U.S. corporation should adopt policies that prohibit the corporation from contributing to an organization that is successfully advancing a philanthropic cause merely because such organization is faith based.
 
(Sec. 304) Amends the Runaway and Homeless Youth Act to make maternity group homes eligible for Transitional Living Project grants.
 
(Sec. 305) Amends part A (Block Grants to States for Temporary Assistance for Needy Families) of title IV of the Social Security Act to limit to 10 percent the amount of any grant under such part which may be used to carry out programs under title XX (Block Grants to States for Social Services) of such Act.


Legislative actions:
action_date: 2003-12-09
text: Read twice and referred to the Committee on Finance.
action_date: 2003-09-17
text: Received in the Senate.
action_date: 2003-09-17
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2003-09-17
text: On passage Passed by the Yeas and Nays: 408 - 13 (Roll no. 508).
action_date: 2003-09-17
text: Passed/agreed to in House: On passage Passed by the Yeas and Nays: 408 - 13 (Roll no. 508).
action_date: 2003-09-17
text: On motion to recommit with instructions Failed by recorded vote: 201 - 221 (Roll no. 507). (consideration: CR H8355)
action_date: 2003-09-17
text: Mr. Neal (MA) moved to recommit with instructions to Ways and Means. (consideration: CR H8345-8355; text: CR H8346-8354)
action_date: 2003-09-17
text: DEBATE - Pursuant to the provisions of H. Res. 370, the House proceeded with one hour of debate on the Cardin amendment in the nature of a substitute.
action_date: 2003-09-17
text: DEBATE - The House proceeded with one hour of debate on H.R. 7, as amended.
action_date: 2003-09-17
text: Rule provides for consideration of H.R. 7 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. The amendment in the nature of a substitute recommended by the Committee on Ways and Means now printed in the bill, modified by the amendment printed in part A of the report of the Committee on Rules accompanying this resolution, shall be considered as adopted. The amendment printed in part B of the report of the Committee on Rules shall be considered as read, and shall be separately debatable for one hour equally divided and controlled by the proponent and an opponent. Measure will be considered read. A specified amendment is in order.
action_date: 2003-09-17
text: Considered under the provisions of rule H. Res. 370. (consideration: CR H8304-8356)
action_date: 2003-09-17
text: Rule H. Res. 370 passed House.
action_date: 2003-09-16
text: Rules Committee Resolution H. Res. 370 Reported to House. Rule provides for consideration of H.R. 7 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. The amendment in the nature of a substitute recommended by the Committee on Ways and Means now printed in the bill, modified by the amendment printed in part A of the report of the Committee on Rules accompanying this resolution, shall be considered as adopted. The amendment printed in part B of the report of the Committee on Rules shall be considered as read, and shall be separately debatable for one hour equally divided and controlled by the proponent and an opponent. Measure will be considered read. A specified amendment is in order.
action_date: 2003-09-16
text: Placed on the Union Calendar, Calendar No. 157.
action_date: 2003-09-16
text: Committee on Education and the Workforce discharged.
action_date: 2003-09-16
text: Committee on Education and the Workforce discharged.
action_date: 2003-09-16
text: House Committee on Education and the Workforce Granted an extension for further consideration ending not later than Sept. 16, 2003.
action_date: 2003-09-16
text: Reported (Amended) by the Committee on Ways and Means. H. Rept. 108-270, Part I.
action_date: 2003-09-16
text: Reported (Amended) by the Committee on Ways and Means. H. Rept. 108-270, Part I.
action_date: 2003-09-09
text: Ordered to be Reported (Amended) by Voice Vote.
action_date: 2003-09-09
text: Committee Consideration and Mark-up Session Held.
action_date: 2003-06-20
text: Referred to the Subcommittee on Select Education.
action_date: 2003-05-07
text: Referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2003-05-07
text: Referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2003-05-07
text: Referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2003-05-07
text: Introduced in House
action_date: 2003-05-07
text: Introduced in House