Federal

VETT Act

Source: Congress.gov · 353 words in original text

What This Bill Does

This bill changes tax law to allow people to deduct charitable donations made to certain veterans' organizations from their taxable income. The bill specifically targets organizations that serve members of the Armed Forces and are federally chartered corporations.

Who It Affects

Taxpayers who donate money to eligible veterans organizations will be directly affected. Members of the Armed Forces and organizations serving them may also be indirectly affected.

Key Provisions

- Organizations described as section 501(c)(19) organizations that are federally chartered corporations become eligible charitable organizations for tax deduction purposes (Sec. 2(a)(1)) - These same federally chartered veteran organizations are added to the percentage limitation rules that determine how much of a person's income can be deducted as charitable contributions (Sec. 2(a)(2))

What Changes

If this bill becomes law, people can claim tax deductions for donations given to federally chartered veteran service organizations, just as they can for other qualified charitable organizations.

Important Definitions

The bill does not explicitly define what "federally chartered corporation" means in this context.

Effective Date

The amendments apply to tax years beginning after the date this law is enacted (Sec. 2(b)).

II 118TH CONGRESS 1ST SESSION S. 677 To amend the Internal Revenue Code of 1986 to provide for the deductibility of charitable contributions to certain organizations for members of the Armed Forces. IN THE SENATE OF THE UNITED STATES MARCH 7, 2023 Mr. CASSIDY (for himself and Ms. DUCKWORTH) 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 provide for the deductibility of charitable contributions to certain organizations for members of the Armed Forces. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘VSO Equal Tax Treat- 4 ment Act’’ or the ‘‘VETT Act’’. 5 SEC. 2. DEDUCTIBILITY OF CHARITABLE CONTRIBUTIONS 6 TO CERTAIN ORGANIZATIONS FOR MEMBERS 7 OF THE ARMED FORCES. 8 (a) IN GENERAL.— 9 VerDate Sep 11 2014 21:55 Mar 15, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S677.IS S677 kjohnson on DSK79L0C42PROD with BILLS 2 •S 677 IS (1) DEFINITION OF A CHARITABLE CONTRIBU- 1 TION.—Section 170(c) of the Internal Revenue Code 2 of 1986 is amended by inserting after paragraph (5) 3 the following new paragraph: 4 ‘‘(6) An organization described in section 5 501(c)(19) that is a federally chartered corpora- 6 tion.’’. 7 (2) PERCENTAGE LIMITATION.—Section 8 170(b)(1)(A) of the Internal Revenue Code of 1986 9 is amended by striking ‘‘or’’ at the end of clause 10 (viii), by adding ‘‘or’’ at the end of clause (ix), and 11 by adding at the end the following new clause: 12 ‘‘(x) an organization described in sec- 13 tion 501(c)(19) that is a federally char- 14 tered corporation,’’. 15 (b) EFFECTIVE DATE.—The amendments made by 16 this section shall apply with respect to taxable years begin- 17 ning after the date of enactment of this Act. 18 Æ VerDate Sep 11 2014 21:55 Mar 15, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\S677.IS S677 kjohnson on DSK79L0C42PROD with BILLS

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