Washington, D.C.– A bill authored by Congressman Erik Paulsen (MN-03) to simplify the tax code for charitable giving was included in legislation that passed the U.S. House of Representatives. Paulsen’s bill was part of H.R. 644, the America Gives More Act, which includes a package of provisions that promote charitable giving. Paulsen’s legislation dealt specifically with issues private foundations encounter with federal excise taxes.

Under current law, private foundations are subject to a complicated, two-tier excise tax on their investment income. This complexity has the perverse effect of discouraging a foundation from giving during times of greater need. Paulsen’s bill eliminates the two-tier structure and replaces it with a single, reduced rate.

“Charitable giving decisions should be based on the needs of our communities, not the tax code,” said Paulsen. “The changes approved by the House today will make giving easier and less expensive. This is good news for the foundations who give charitably, but it’s better news for the people that these foundations serve.”

In addition to Paulsen’s bill, H.R. 644 promotes charitable giving by:

·         Encouraging companies to donate food to help feed the hungry;

·        Making it easier for wealthy individuals who don’t need the money in their retirement accounts to give those funds to charitable organizations of every variety; and

·     Incentivizing landowners to protect and preserve our environment for future generations through conservation easements.

Click here to watch video of Congressman Paulsen speaking on the House floor in support of the America Gives More Act.

Minnesota has over 1,400 charitable foundations that give more than $1 billion annually. Nationally, over 95% of American households give to charity. Paulsen’s bill is endorsed by the Minnesota Council on Foundations.

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

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