Washington, D.C.– The U.S. House of Representatives passed legislation in a bipartisan vote today that would improve tax provisions regarding charitable organizations and remove tax barriers for charitable giving. Congressman Erik Paulsen (MN-03) voted in favor of H.R. 4719, the America Gives More Act, which includes legislation he authored to simplify and reduce the excise tax on private foundations’ investment income. Current law actually discourages foundations from making large donations in times of need.  

“The compassion and giving spirit of Americans is a central part of the fabric of our country,” said Paulsen. “We should make it easier for foundations and charities to provide help, and this legislation does that in a number of different ways. The bottom line is that every dollar these organizations are paying in taxes means one less dollar for those in need.”

Paulsen’s legislation would benefit over 1,400 foundations in Minnesota that donate more than $1 billion annually. Video of Congressman Paulsen speaking in favor of the legislation can be seen here.

In addition to Paulsen’s provision simplifying the tax code for private foundations, H.R. 4719 includes a number of other improvements and extensions to the tax code by 1) Changing the charitable deduction for contributions of food inventory to better reflect the fair market value; 2) Permanently reauthorizing tax-free distributions from Individual Retirement Accounts (IRAs) for charitable purposes; 3) Permanently extending provisions allowing for deductions of conservation easements; and 4) Extending the deadline for taxpayers to make tax deductible charitable contributions each year.

Paulsen, a champion of small business and advocate of free enterprise, entrepreneurship, and innovation, serves on the House Ways and Means Committee, the bicameral Joint Economic Committee, and is co-chair of the Congressional Medical Technology Caucus.

For more information on Congressman Paulsen’s work in Congress visit paulsen.house.gov. 

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