Legislative update - House approves permanent extension of charitable provisions 

July 17: The House of Representatives today approved, 277-130, H.R. 4719—America Gives More Act of 2014.

H.R. 4719 [PDF 46 KB] consolidates text of five bills—H.R. 2807, H.R. 4619, H.R. 4719, H.R. 3134, and H.R. 4691—into one bill and would make permanent or modify various charitable provisions to:


  • Extend the special rule for contributions of qualified conservation contributions
  • Extend the provision allowing tax-free contributions from retirement accounts or instruments to charitable organizations
  • Extend and expand the charitable deduction for contributions of food inventory
  • Create a provision extending the period in which a charitable deduction may be claimed to the due date of the return
  • Reduce the section 4940 excise tax (concerning private foundations) from 2% to 1%

H.R. 4719 has a 10-year cost of $16.2 billion, according to the Joint Committee on Taxation (JCT), and includes no revenue offsets. Read the JCT revenue estimate of the bill: JCX-89-14

White House reaction

The Office of Management and Budget today issued a Statement of Administration Policy [PDF 74 KB] stating the administration’s opposition to H.R. 4719.

Background

The Ways and Means Committee on May 29, 2014, reported the five bills. Read TaxNewsFlash-United States


In connection with the Ways and Means markup, the JCT provided descriptions of the five bills. Rread text of those five bills and the JCT descriptions:


  • H.R. 2807 [PDF 246 KB] which would permanently extend the special rule for contributions of qualified conservation contributions—JCT description [PDF 55 KB] of H.R. 2807
  • H.R. 4619 [PDF 242 KB] which would allow tax-free contributions from retirement instruments to charitable organizations—JCT description [PDF 59 KB] of H.R. 4619
  • H.R. 4719 [PDF 989 KB] which would extend and expand the charitable deduction for contributions of food inventory—JCT description [PDF 56 KB] of H.R. 4719
  • H.R. 3134 [PDF 242 KB] which would extend the period in which a charitable deduction may be taken to the due date of the return—JCT description [PDF 34 KB] of H.R. 3134
  • H.R. 4691 [PDF 340 KB] which would reduce the excise tax from 2% to 1%—JCT description [PDF 35 KB] of H.R. 4691

The Senate Finance Committee approved a bill that includes a two-year extension of several charitable provisions, but consideration of this bill by the Senate was blocked in May 2014—read TaxNewsFlash-United States.




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