Sec. 70425. 0.5 percent floor on deduction of contributions made by individuals
571 words·~3 min read·
/bill/119/hr/1/eas/section-70425A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Paragraph
(1)of section 170(b) is amended by adding at the end the following new subparagraph: Any charitable contribution otherwise allowable (without regard to this subparagraph) as a deduction under this section shall be allowed only to the extent that the aggregate of such contributions exceeds 0.5 percent of the taxpayer's contribution base for the taxable year. The preceding sentence shall be applied— first, by taking into account charitable contributions to which subparagraph
(D)applies to the extent thereof, second, by taking into account charitable contributions to which subparagraph
(C)applies to the extent thereof, third, by taking into account charitable contributions to which subparagraph
(B)applies to the extent thereof, fourth, by taking into account charitable contributions to which subparagraph
(E)applies to the extent thereof, fifth, by taking into account charitable contributions to which subparagraph
(A)applies to the extent thereof, and sixth, by taking into account charitable contributions to which subparagraph
(G)applies to the extent thereof. . Paragraph
(1)of section 170(d) is amended by adding at the end the following new subparagraph: In the case of any taxable year from which an excess is carried forward (determined without regard to this subparagraph) under any carryover rule, the applicable carryover rule shall be applied by increasing the excess determined under such applicable carryover rule for the contribution year (before the application of subparagraph (B)) by the amount attributable to the charitable contributions to which such rule applies which is not allowed as a deduction for the contribution year by reason of subsection (b)(1)(I). For purposes of this subparagraph, the term carryover rule means— subparagraph
(A)of this paragraph, subparagraphs (C)(ii), (D)(ii), (E)(ii), and (G)(ii) of subsection (b)(1), and the second sentence of subsection (b)(1)(B). For purposes of this subparagraph, the term applicable carryover rule means any carryover rule applicable to charitable contributions which were (in whole or in part) not allowed as a deduction for the contribution year by reason of subsection (b)(1)(I). . Section 170(p), as amended by this Act, is further amended by inserting , (b)(1)(I), after subsections (b)(1)(G)(ii) . Clause
(i)of section 170(b)(1)(G) is amended to read as follows: For taxable years beginning after December 31, 2017, any contribution of cash to an organization described in subparagraph
(A)shall be allowed as a deduction under subsection
(a)to the extent that the aggregate of such contributions does not exceed the excess of— 60 percent of the taxpayer’s contribution base for the taxable year, over the aggregate amount of contributions taken into account under subparagraph
(A)for such taxable year. . Clause
(iii)of section 170(b)(1)(G) is amended— by striking in the heading and inserting subparagraphs
(A)and
(B), and subparagraph
(A)in subclause (II), by striking , and subparagraph
(B)and all that follows through this subparagraph . Subparagraph
(B)of section 170(b)(1) is amended— by striking to which subparagraph
(A)both places it appears and inserting to which subparagraph
(A)or
(G), and in clause (ii), by striking over the amount and all that follows through subparagraph (C)). and inserting “over— the amount of charitable contributions allowable under subparagraph
(A)(determined without regard to subparagraph (C)) and subparagraph (G), reduced by so much of the contributions taken into account under subparagraph
(G)as does not exceed 10 percent of the taxpayer’s contribution base. . The amendments made by this section shall apply to taxable years beginning after December 31, 2025.