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House Approves Charitable Giving Act

WASHINGTON – Wisconsin’s First District Congressman Paul Ryan today voted for legislation – H.R. 7, the Charitable Giving Act of 2003 – that would improve incentives for individuals and businesses to increase their contributions to help those in need.  The House of Representatives passed this bill by a vote of 408-13, and the House and Senate must resolve differences between their versions of this legislation before it can be sent to the President. 

“One of America’s great strengths is people’s generosity and willingness to reach out and help one another,” Ryan said.  “Our government should not dampen this spirit of giving, but instead do all it can to remove obstacles that keep people from donating as much as they would like.  Today’s vote is a step toward better tax policy to encourage more charitable giving.”

H.R. 7 includes the following:

·        Charitable deduction for non-itemizers.  Currently, about two-thirds of tax returns filed do not claim itemized deductions, leaving many taxpayers unable to deduct their charitable contributions.  This legislation would allow taxpayers who do not itemize the opportunity to deduct a portion of their charitable contributions. 

·        Charitable Individual Retirement Account (IRA) distributions.  It is estimated that Americans have saved approximately $2.3 trillion in IRAs.  By allowing taxpayers who have reached age 70 ˝ to make tax-free transfers of IRA assets for charitable purposes, this legislation will spark increased charitable giving.  

·        Increased charitable contributions by corporations and other businesses.  The bill includes the following incentives:

-         Increases the cap on corporate charitable contributions from 10 percent to 20 percent of modified taxable income;

-         Extends the enhanced deduction for donations of food inventory to all businesses;

-         Makes it easier for corporations to make charitable contributions of scientific property used for research and computer technology.

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