To amend the Internal Revenue Code of 1986 to extend the charitable deduction to all taxpayers regardless of whether a taxpayer itemizes deductions in order to encourage and increase charitable giving.

I 116TH CONGRESS 1ST SESSION H. R. 1260 To amend the Internal Revenue Code of 1986 to extend the charitable deduction to all taxpayers regardless of whether a taxpayer itemizes deductions in order to encourage and increase charitable giving. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 14, 2019 Mr. DANNY K. DAVIS of Illinois 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 extend the charitable deduction to all taxpayers regardless of whether a taxpayer itemizes deductions in order to en- courage and increase charitable giving. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. UNIVERSAL DEDUCTION FOR CHARITABLE GIV- 3 ING. 4 (a) IN GENERAL.—Section 62(a) of the Internal Rev- 5 enue Code of 1986 is amended by inserting after para- 6 graph (21) the following new paragraph: 7 VerDate Sep 11 2014 04:35 Feb 28, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1260.IH H1260 kjohnson on DSK79L0C42 with BILLS 2 •HR 1260 IH ‘‘(22) CHARITABLE CONTRIBUTIONS.—The de- 1 duction allowed by section 170 (reduced by the por- 2 tion thereof disallowed under section 68).’’. 3 (b) APPLICATION OF OVERALL LIMITATION ON 4 ITEMIZED DEDUCTIONS.—Section 68 of such Code is 5 amended by adding at the end the following new sub- 6 section: 7 ‘‘(g) APPLICATION TO DEDUCTION FOR CHARITABLE 8 CONTRIBUTIONS.— 9 ‘‘(1) IN GENERAL.—For purposes of this sec- 10 tion, the deduction allowed by section 170 shall be 11 treated as an itemized deduction. 12 ‘‘(2) APPLICATION OF LIMITATION TO ABOVE- 13 THE-LINE DEDUCTION.—For purposes of section 14 62(a)(22), the portion of the deduction allowed by 15 section 170 for any taxable year which is disallowed 16 under this section is the portion bearing the same 17 ratio as— 18 ‘‘(A) the amount of the reduction under 19 subsection (a) for such taxable year, bears to 20 ‘‘(B) the amount of the itemized deduc- 21 tions otherwise allowable for such taxable 22 year.’’. 23 VerDate Sep 11 2014 04:35 Feb 28, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1260.IH H1260 kjohnson on DSK79L0C42 with BILLS 3 •HR 1260 IH (c) CONFORMING AMENDMENT.—Section 1 170(b)(1)(H) of such Code is amended by inserting ‘‘this 2 section and’’ after ‘‘computed without regard to’’. 3 (d) EFFECTIVE DATE.— 4 (1) IN GENERAL.—The amendments made by 5 this section shall apply to taxable years beginning 6 after the date of the enactment of this Act. 7 (2) CROSS REFERENCE.—For suspension of the 8 application of section 68 of the Internal Revenue 9 Code of 1986 (including the amendments to such 10 section made by subsection (b)), see section 68(f) of 11 such Code. 12 Æ VerDate Sep 11 2014 04:35 Feb 28, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H1260.IH H1260 kjohnson on DSK79L0C42 with BILLS