Bill Summary
This bill, if enacted, would extend the charitable deduction to all taxpayers, regardless of whether they itemize deductions or not. This is to encourage and increase charitable giving. Additionally, the bill would also provide loans and loan guarantees to certain public charities, with a limit of $60 billion in total loans. The criteria for receiving these loans would prioritize organizations directly assisting in the COVID-19 response effort. To fund these loans, an appropriation is made for the fiscal year 2022.
Possible Impacts
1. The legislation could potentially encourage more people to make charitable donations, as it extends the charitable deduction to all taxpayers, regardless of whether they itemize their deductions. This could also lead to an increase in overall charitable giving.
2. Non-profit organizations providing direct assistance in the COVID-19 response effort could receive loans or loan guarantees from the government, which could help them continue their work and reach more people in need.
3. As the legislation only applies to taxable years beginning after the date of enactment, people could see a change in their tax deductions and overall tax liability in the following year. This could potentially affect their financial planning and budgeting.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6408 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 6408
To extend the charitable deduction to all taxpayers regardless of
whether a taxpayer itemizes deductions in order to encourage and
increase charitable giving, and to provide for loans and loan
guarantees to certain public charities.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 27, 2020
Mr. Moulton (for himself, Mr. Fitzpatrick, Ms. Slotkin, Mr. LaHood, Mr.
McGovern, Mr. Lynch, Mr. Kilmer, Mrs. Trahan, and Mr. Rouda) introduced
the following bill; which was referred to the Committee on Ways and
Means
_______________________________________________________________________
A BILL
To extend the charitable deduction to all taxpayers regardless of
whether a taxpayer itemizes deductions in order to encourage and
increase charitable giving, and to provide for loans and loan
guarantees to certain public charities.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. UNIVERSAL DEDUCTION FOR CHARITABLE GIVING.
(a) In General.--Section 62(a) of the Internal Revenue Code of 1986
is amended by inserting after paragraph (21) the following new
paragraph:
``(22) Charitable contributions.--The deduction allowed by
section 170 (reduced by the portion thereof disallowed under
section 68).''.
(b) Application of Overall Limitation on Itemized Deductions.--
Section 68 of such Code is amended by adding at the end the following
new subsection:
``(g) Application to Deduction for Charitable Contributions.--
``(1) In general.--For purposes of this section, the
deduction allowed by section 170 shall be treated as an
itemized deduction.
``(2) Application of limitation to above-the-line
deduction.--For purposes of section 62(a)(22), the portion of
the deduction allowed by section 170 for any taxable year which
is disallowed under this section is the portion bearing the
same ratio as--
``(A) the amount of the reduction under subsection
(a) for such taxable year, bears to
``(B) the amount of the itemized deductions
otherwise allowable for such taxable year.''.
(c) Conforming Amendment.--Section 170(b)(1)(H) of such Code is
amended by inserting ``this section and'' after ``computed without
regard to''.
(d) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxable years beginning after the date of the
enactment of this Act.
(2) Cross reference.--For suspension of the application of
section 68 of the Internal Revenue Code of 1986 (including the
amendments to such section made by subsection (b)), see section
68(f) of such Code.
SEC. 2. LOANS AND LOAN GUARANTEES TO CERTAIN PUBLIC CHARITIES.
(a) In General.--Upon the application of any organization described
in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt
from tax under section 501(a) of such Code, the Secretary of the
Treasury (or the Secretary's delegate) shall, subject to the provisions
of this section, make or guarantee a loan to such organization.
(b) Limitation on Aggregate Amount Loans.--The aggregate amount of
loans made or guaranteed under this section shall not exceed
$60,000,000,000.
(c) Criteria.--In carrying out this section, the Secretary (or the
Secretary's delegate) shall give priority to eligible organizations
that are providing direct assistance in the COVID-19 response effort.
(d) Appropriation.--There are hereby appropriated for the fiscal
year ending on September 30, 2002, to the Secretary of the Treasury
such sums as may be necessary to carry out this section, which sums
shall remain available until expended.
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