Sec. 4. Volume cap

434 words·~2 min read·/bill/119/s/1813/is/section-4

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

For purposes of section 25F(f) of the Internal Revenue Code of 1986 (as added by this Act), the volume cap applicable with respect to such section shall be $5,000,000,000 of tax credits for taxable years beginning in calendar year 2026 and each subsequent year thereafter, with such amount to be allocated as follows: $10,000,000 of tax credits shall be allocated to each State (as defined in section 7701(a)(10) of the Internal Revenue Code of 1986), with such amount to be made available, in the manner described in subsection (b), for any individual residing in such State to claim the credit allowed under section 25F of the Internal Revenue Code of 1986 with respect to any qualified contributions (as defined in such section) made by such individual during any taxable year beginning during such calendar year.

With respect to the amount remaining after the allocation under subparagraph (A), such amount (as adjusted pursuant to paragraph (3)) shall be made available, in the manner described in subsection (b), for any individual to claim the credit allowed under section 25F of the Internal Revenue Code of 1986 with respect to any qualified contributions made by such individual during any taxable year beginning during such calendar year. The amount of any allotment to a State under paragraph (1)(A) for any calendar year which is not claimed by taxpayers described in such paragraph during such calendar year shall be added to the allotment provided under paragraph (1)(B) for the subsequent calendar year.

For purposes of paragraph (1)(B), if the Secretary determines during any calendar year that the amount of tax credits allowable under section 25F with respect to qualified contributions made during such calendar year is equal to or greater than 90 percent of the total amount made available under such paragraph for such calendar year, such amount shall be increased by an amount equal to 5 percent of the total amount made available under such paragraph as of January 1 of such calendar year, with such increase to remain in effect for the subsequent calendar year.

For purposes of applying the volume cap under this section, such volume cap shall be applied based on a first-come, first-serve basis, as determined based on the date on which the taxpayer made the qualified contribution. For purposes of this section, the Secretary of the Treasury (or the Secretary's delegate) shall develop a system to track the amount of qualified contributions made during the calendar year for which a credit may be claimed under section 25F of the Internal Revenue Code of 1986, with such information to be updated in real time.