Charitable Act

Bill: 119-s-317
Sponsor: full_name: Sen. Lankford, James [R-OK]
Introduced: 2025-01-29
Policy area: Taxation
Latest action: action_date: 2025-01-29
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2025-01-29
action_desc: Introduced in Senate
text: <p><strong>Charitable Act</strong></p><p>This bill allows an individual taxpayer who does not itemize their tax deductions to claim a tax deduction for charitable contributions and eliminates the tax penalty for overstating charitable contributions. (Some limitations apply).</p><p>Under the bill, for tax years beginning in 2026 or 2027, an individual taxpayer who does not itemize their tax deductions may deduct charitable contributions of up to one-third of the standard deduction allowed to such individual. (Under current law, an individual taxpayer generally must itemize their tax deductions to deduct charitable contributions.)</p><p>The bill also eliminates the tax penalty for an underpayment of taxes attributable to overstated charitable contributions by taxpayers who do not itemize deductions. (Under current law, taxpayers who claim a deduction under this bill may be assessed a tax penalty in the amount of 50% of the portion of an understatement of tax liability attributable to overstated charitable contributions.)</p>

tv_txt: II 119th CONGRESS 1st Session S. 317 IN THE SENATE OF THE UNITED STATES January 29, 2025 Mr. Lankford (for himself, Mr. Coons , Ms. Cortez Masto , Mr. Hickenlooper , Mr. Ricketts , Ms. Klobuchar , Mr. Warnock , Mrs. Shaheen , Mr. Curtis , Mrs. Blackburn , Mr. Moran , Mrs. Britt , Mr. Scott of South Carolina , and Ms. Rosen ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to modify and extend the deduction for charitable contributions for individuals not itemizing deductions.

1. Short title This Act may be cited as the Charitable Act . 2. Modification and extension of deduction for charitable contributions for individuals not itemizing deductions (a) In general Subsection (p) of section 170 of the Internal Revenue Code of 1986 is amended to read as follows: (p) Special rule for taxpayers who do not elect To itemize deductions In the case of a taxable year beginning in 2026 or 2027, the deduction under this subsection for the taxable year shall be equal to so much of the deduction determined under this section (without regard to this subsection) for such taxable year as does not exceed an amount equal to 1/3 of the amount of the standard deduction with respect to such individual for such taxable year. This subsection shall apply only in the case of an individual who does not elect to itemize deductions for the taxable year. . (b) Elimination of penalty (1) In general Section 6662(b) of the Internal Revenue Code of 1986 is amended by striking paragraph (9) and by redesignating paragraph (10) as paragraph (9). (2) Increased penalty Section 6662 of such Code is amended by striking subsection (l). (3) Conforming amendments (A) Sections 6662(h)(2)(D) of such Code is amended by striking subsection (b)(10) and inserting subsection (b)(9) . (B) Section 6664(c)(2) of such Code is amended by striking section 6662(b)(10) and inserting section 6662(b)(9) . (C) Section 6751(b)(2)(A) of such Code is amended by striking by reason of paragraph (9) or (10) of subsection (b) thereof and inserting by reason of subsection (b)(9) thereof . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2025.