Bill Summary
This legislation, titled the "Supporting Charitable Institutions Act of 2020," allows individuals to receive a tax credit for certain charitable contributions made in response to the coronavirus outbreak during the 2020 taxable year. The credit is equal to 24% of qualified contributions, which are defined as cash donations made in 2020 to organizations aiding in COVID-19 relief efforts in the United States. Donations to certain organizations and for the establishment of donor advised funds are not eligible for this credit. The credit is nonrefundable and any excess amount can be carried forward as a charitable contribution for future tax years. This credit cannot be used in conjunction with the charitable contribution deduction.
Possible Impacts
1. Encourages individuals to make charitable contributions in response to the COVID-19 pandemic, potentially increasing donations to organizations supporting relief efforts.
2. May provide tax relief for individuals who make qualifying charitable contributions, potentially helping to alleviate financial burdens caused by the pandemic.
3. Excludes certain types of contributions, such as donations to donor advised funds, from being eligible for the tax credit, potentially limiting the impact of the legislation on certain charitable organizations.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3525 Introduced in Senate (IS)]
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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 Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Supporting Charitable Institutions
Act of 2020''.
SEC. 2. CREDIT FOR CORONAVIRUS-RELATED CHARITABLE CONTRIBUTIONS.
(a) In General.--In the case of an individual who elects the
application of this section, there shall be allowed as a credit against
the tax imposed by chapter 1 of the Internal Revenue Code of 1986 for
the first taxable year ending on or after December 31, 2020, an amount
equal to 24 percent of so much of the qualified contributions made by
the individual as does not exceed--
(1) $8,000, in the case of a joint return;
(2) $6,000, in the case of a head of household (as defined
in section 2(b) of the Internal Revenue Code of 1986); and
(3) $4,000, in any other case.
(b) Qualified Contributions.--
(1) In general.--For purposes of this section, the term
``qualified contributions'' means the charitable contributions
(as defined in section 170(c) of the Internal Revenue Code of
1986) made by an individual which are paid--
(A) in cash;
(B) during calendar year 2020;
(C) to an organization described in section
170(b)(1)(A) of such Code; and
(D) for relief efforts connected to the SARS-CoV-2
or Coronavirus Disease 2019 (abbreviated as COVID-19)
outbreak in the United States.
(2) Contemporaneous written acknowledgement.--Such term
shall not include any contribution unless the taxpayer obtains
from such organization contemporaneous written acknowledgment
(within the meaning of section 170(f)(8) of such Code) that
such contribution was used (or is to be used) for relief
efforts described in paragraph (1)(D).
(3) Exception.--Such term shall not include a contribution
by a donor if the contribution is--
(A) to an organization described in section
509(a)(3) of the Internal Revenue Code of 1986; or
(B) for the establishment of a new, or maintenance
of an existing, donor advised fund (as defined in
section 4966(d)(2) of such Code).
(c) Credit Rules.--
(1) Credit treated as nonrefundable personal credit.--The
credit under this section shall be treated as a credit allowed
under subpart A of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986.
(2) Carryforwards of unused credit.--If the credit
allowable under subsection (a) for the taxable year exceeds the
limitation imposed by section 26(a) of such Code for such
taxable year, reduced by the sum of the credits allowable under
such subpart A (other than this section), such excess shall be
treated as excess charitable contributions for such year for
purposes of section 170 of such Code and carried forward
according to the rules of section 170(d)(1) of such Code.
(3) Coordination with deduction for charitable
contributions.--Except as provided in paragraph (2), any
qualified contribution with respect to which a credit is
allowed under subsection (a) shall not be treated as a
charitable contribution for purposes of the deduction
determined under section 170 of the Internal Revenue Code of
1986.
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