Supporting Charitable Institutions Act of 2020

II 116TH CONGRESS 2D SESSION S. 3525 To allow a tax credit for certain coronavirus-related charitable contributions for taxable year 2020. IN THE SENATE OF THE UNITED STATES MARCH 18, 2020 Mrs. SHAHEEN introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To allow a tax credit for certain coronavirus-related charitable contributions for taxable year 2020. 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 ‘‘Supporting Charitable 4 Institutions Act of 2020’’. 5 SEC. 2. CREDIT FOR CORONAVIRUS-RELATED CHARITABLE 6 CONTRIBUTIONS. 7 (a) IN GENERAL.—In the case of an individual who 8 elects the application of this section, there shall be allowed 9 as a credit against the tax imposed by chapter 1 of the 10 VerDate Sep 11 2014 03:55 Apr 02, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3525.IS S3525 kjohnson on DSK79L0C42PROD with BILLS 2 •S 3525 IS Internal Revenue Code of 1986 for the first taxable year 1 ending on or after December 31, 2020, an amount equal 2 to 24 percent of so much of the qualified contributions 3 made by the individual as does not exceed— 4 (1) $8,000, in the case of a joint return; 5 (2) $6,000, in the case of a head of household 6 (as defined in section 2(b) of the Internal Revenue 7 Code of 1986); and 8 (3) $4,000, in any other case. 9 (b) QUALIFIED CONTRIBUTIONS.— 10 (1) IN GENERAL.—For purposes of this section, 11 the term ‘‘qualified contributions’’ means the chari- 12 table contributions (as defined in section 170(c) of 13 the Internal Revenue Code of 1986) made by an in- 14 dividual which are paid— 15 (A) in cash; 16 (B) during calendar year 2020; 17 (C) to an organization described in section 18 170(b)(1)(A) of such Code; and 19 (D) for relief efforts connected to the 20 SARS–CoV–2 or Coronavirus Disease 2019 21 (abbreviated as COVID–19) outbreak in the 22 United States. 23 (2) CONTEMPORANEOUS WRITTEN ACKNOWL- 24 EDGEMENT.—Such term shall not include any con- 25 VerDate Sep 11 2014 21:09 Apr 06, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3525.IS S3525 kjohnson on DSK79L0C42PROD with BILLS 3 •S 3525 IS tribution unless the taxpayer obtains from such or- 1 ganization contemporaneous written acknowledgment 2 (within the meaning of section 170(f)(8) of such 3 Code) that such contribution was used (or is to be 4 used) for relief efforts described in paragraph 5 (1)(D). 6 (3) EXCEPTION.—Such term shall not include a 7 contribution by a donor if the contribution is— 8 (A) to an organization described in section 9 509(a)(3) of the Internal Revenue Code of 10 1986; or 11 (B) for the establishment of a new, or 12 maintenance of an existing, donor advised fund 13 (as defined in section 4966(d)(2) of such Code). 14 (c) CREDIT RULES.— 15 (1) CREDIT TREATED AS NONREFUNDABLE 16 PERSONAL CREDIT.—The credit under this section 17 shall be treated as a credit allowed under subpart A 18 of part IV of subchapter A of chapter 1 of the Inter- 19 nal Revenue Code of 1986. 20 (2) CARRYFORWARDS OF UNUSED CREDIT.—If 21 the credit allowable under subsection (a) for the tax- 22 able year exceeds the limitation imposed by section 23 26(a) of such Code for such taxable year, reduced by 24 the sum of the credits allowable under such subpart 25 VerDate Sep 11 2014 03:55 Apr 02, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3525.IS S3525 kjohnson on DSK79L0C42PROD with BILLS 4 •S 3525 IS A (other than this section), such excess shall be 1 treated as excess charitable contributions for such 2 year for purposes of section 170 of such Code and 3 carried forward according to the rules of section 4 170(d)(1) of such Code. 5 (3) COORDINATION WITH DEDUCTION FOR 6 CHARITABLE CONTRIBUTIONS.—Except as provided 7 in paragraph (2), any qualified contribution with re- 8 spect to which a credit is allowed under subsection 9 (a) shall not be treated as a charitable contribution 10 for purposes of the deduction determined under sec- 11 tion 170 of the Internal Revenue Code of 1986. 12 Æ VerDate Sep 11 2014 03:55 Apr 02, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S3525.IS S3525 kjohnson on DSK79L0C42PROD with BILLS