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Washington, D.C., Mar 5 - Congressman J. Randy Forbes (VA-04) announced today that he has introduced legislation to increase the ability of citizens – rather than the federal government – to meet the needs of their communities and of the nation. The Citizens’ Choice Act, H.R. 4702, would allow up to a $1,000 federal tax credit for charitable contributions, providing a dollar-for-dollar reduction in their tax bills.  

“The last several years have brought great challenges for our families, our communities, and our nation.  On the front line of meeting those challenges have been our charities, churches, universities, housing nonprofits, clinics, food kitchens, and job training centers. The individuals working at the local level know needs of their communities intimately and personally, and they are in the best position to design creative and efficient programs to meet the needs of the people they see face-to-face every day. The Citizens’ Choice Act would reinvigorate charitable giving to these organizations and, fundamentally, it would recognize that it is our faith leaders, housing counselors, clinic workers, university leaders, job trainers, and other folks in our communities that know how to meet the needs of our communities – not bureaucrats in Washington,” said Forbes.  

Currently, charitable contributions are only eligible for a tax deduction, an amount of money that lowers an individual’s taxable income. The Citizens’ Choice Act would give American taxpayers the option to use the current tax system or receive a full dollar-for-dollar tax credit for the first $1,000 of their charitable contributions. 

The tax credit would be limited to organizations described in 170(b)(1)(A) of the IRS code, which include: (1) churches, (2) educational organizations, (3) medical care and research organizations, (4) university endowments and trusts, (5) a government agency (if the gift is used for public purposes), (6) nonprofits dedicated to religious, charitable, scientific, literary, educational, prevention of cruelty, or amateur sports purposes, (7) certain private philanthropic foundations, and (8) certain private foundations that rely on gifts, grants, contributions, and membership fees.  

“Americans – even during times of great economic challenge – have shown their consistent and overwhelming generosity. Removing the federal government as a middle man in that process will reinvigorate giving, empower the spirit of generosity in America, and promote community-level efficiency and accountability.  Revitalizing local charities will inspire a level of confidence, creativity, and specificity that the current ‘big government’ mentality in Washington could never hope to contend with,” said Forbes.  

The legislation has been referred to the Committee on Ways and Means where it awaits further action. For more information on Congressman Forbes’ work on tax issues, visit his Web site forbes.house.gov.