To amend the Internal Revenue Code of 1986 to provide tax relief for damages relating to federally declared disasters during September 2013, and for other purposes.

Bill: 113-hr-4497
Sponsor: full_name: Rep. Gardner, Cory [R-CO-4]
Introduced: 2014-04-28
Policy area: Taxation
Subjects: Business expenses

Charitable contributions

Disaster relief and insurance

Income tax deductions

Natural disasters

Social work, volunteer service, charitable organizations
Latest action: action_date: 2014-04-28
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2014-04-28
action_desc: Introduced in House
text: <p>Amends the Internal Revenue Code, with respect to tax relief for federally-declared disasters, to: (1) allow the expensing of qualified disaster expenses (i.e., for&nbsp;removal of debris, demolition, and repair of business-related property) for a disaster occurring during September 2013; (2) allow individual taxpayers an increased tax deduction for charitable contributions made for relief efforts related to a federally-declared disaster which occurs after August 31, 2013, if such contributions are made by December 31, 2014; and (3) allow corporations an increased tax deduction for disaster-related charitable contributions. </p>

tv_txt: I 113th CONGRESS 2d Session H. R. 4497 IN THE HOUSE OF REPRESENTATIVES April 28, 2014 Mr. Gardner 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 provide tax relief for damages relating to federally declared disasters during September 2013, and for other purposes.

1. Expensing of qualified disaster expenses (a) In general Paragraph (2) of section 198A(b) of the Internal Revenue Code of 1986 is amended— (1) by striking before January 1, 2010 in subparagraph (A) and inserting before January 1, 2010, or during September 2013 , and (2) by striking before such date each place it appears in subparagraphs (B) and (C) and inserting before January 1, 2010, or during September 2013 . (b) Effective date The amendment made by this section shall apply to amounts paid or incurred after August 31, 2013. 2. Increased limitation on charitable contributions for disaster relief (a) Individuals Paragraph (1) of section 170(b) of the Internal Revenue Code of 1986 is amended by redesignating subparagraphs (F) and (G) as subparagraphs (G) and (H), respectively, and by inserting after subparagraph (E) the following new subparagraph: (F) Qualified disaster contributions (i) In general Any qualified disaster contribution shall be allowed to the extent that the aggregate of such contributions does not exceed the excess of 80 percent of the taxpayer's contribution base over the amount of all other charitable contributions allowable under this paragraph. (ii) Carryover If the aggregate amount of contributions described in clause (i) exceeds the limitation under clause (i), such excess shall be treated (in a manner consistent with the rules of subsection (d)(1)) as a charitable contribution to which clause (i) applies in each of the 5 succeeding years in order of time. (iii) Coordination with other subparagraphs For purposes of applying this subsection and subsection (d)(1), contributions described in clause (i) shall not be treated as described in subparagraph (A) and such subparagraph shall be applied without regard to such contributions. (iv) Qualified disaster contributions For purposes of this subparagraph, the term qualified disaster contribution means any charitable contribution if— (I) such contribution is for relief efforts related to a federally declared disaster (as defined in section 165(h)(3)(C)(i)) which occurs after August 31, 2013, (II) such contribution is made during the period beginning on the applicable disaster date with respect to the disaster described in subclause (I) and ending on December 31, 2014, and (III) such contribution is made in cash to an organization described in subparagraph (A) (other than an organization described in section 509(a)(3)). Such term shall not include a contribution if the contribution is for establishment of a new, or maintenance in an existing, donor advised fund (as defined in section 4966(d)(2)). (v) Applicable disaster date For purposes of clause (iv)(II), the term applicable disaster date means, with respect to any federally declared disaster described in clause (iv)(I), the date on which the disaster giving rise to the Presidential declaration described in section 165(h)(3)(C)(i) occurred. (vi) Substantiation requirement This paragraph shall not apply to any qualified disaster contribution unless the taxpayer obtains from such organization to which the contribution was made a contemporaneous written acknowledgment (within the meaning of subsection (f)(8)) that such contribution was used (or is to be used) for a purpose described in clause (iv)(III). . (b) Corporations (1) In general Paragraph (2) of section 170(b) of the Internal Revenue Code of 1986 is amended by redesignating subparagraph (C) as subparagraph (D) and by inserting after subparagraph (B) the following new subparagraph: (C) Qualified disaster contributions (i) In general Any qualified disaster contribution shall be allowed to the extent that the aggregate of such contributions does not exceed the excess of 20 percent of the taxpayer's taxable income over the amount of charitable contributions allowed under subparagraph (A). (ii) Carryover If the aggregate amount of contributions described in clause (i) exceeds the limitation under clause (i), such excess shall be treated (in a manner consistent with the rules of subsection (d)(1)) as a charitable contribution to which clause (i) applies in each of the 5 succeeding years in order of time. (iii) Qualified disaster contribution The term qualified disaster contribution has the meaning given such term under paragraph (2)(F)(iv). (iv) Substantiation requirement This paragraph shall not apply to any qualified disaster contribution unless the taxpayer obtains from such organization to which the contribution was made a contemporaneous written acknowledgment (within the meaning of subsection (f)(8)) that such contribution was used (or is to be used) for a purpose described in paragraph (1)(F)(iv)(III). . (2) Conforming amendments (A) Subparagraph (A) of section 170(b)(2) of such Code is amended by striking subparagraph (B) applies and inserting subparagraphs (B) and (C) apply . (B) Subparagraph (B) of section 170(b)(2) of such Code is amended by striking subparagraph (A) and inserting subparagraphs (A) and (C) . (c) Effective date The amendments made by this section shall apply to contributions after August 31, 2013.