Official Summaries

Charitable Act

This bill allows an individual taxpayer who does not itemize their tax deductions to claim a tax deduction for charitable contributions and eliminates the tax penalty for overstating charitable contributions. (Some limitations apply).

Under the bill, for tax years beginning in 2026 or 2027, an individual taxpayer who does not itemize their tax deductions may deduct charitable contributions of up to one-third of the standard deduction allowed to such individual. (Under current law, an individual taxpayer generally must itemize their tax deductions to deduct charitable contributions.)

The bill also eliminates the tax penalty for an underpayment of taxes attributable to overstated charitable contributions by taxpayers who do not itemize deductions. (Under current law, taxpayers who claim a deduction under this bill may be assessed a tax penalty in the amount of 50% of the portion of an understatement of tax liability attributable to overstated charitable contributions.)

Current Full Text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 317 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                 S. 317

  To amend the Internal Revenue Code of 1986 to modify and extend the 
 deduction for charitable contributions for individuals not itemizing 
                              deductions.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 29, 2025

      Mr. Lankford (for himself, Mr. Coons, Ms. Cortez Masto, Mr. 
 Hickenlooper, Mr. Ricketts, Ms. Klobuchar, Mr. Warnock, Mrs. Shaheen, 
 Mr. Curtis, Mrs. Blackburn, Mr. Moran, Mrs. Britt, Mr. Scott of South 
Carolina, and Ms. Rosen) introduced the following bill; which was read 
             twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to modify and extend the 
 deduction for charitable contributions for individuals not itemizing 
                              deductions.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Charitable Act''.

SEC. 2. MODIFICATION AND EXTENSION OF DEDUCTION FOR CHARITABLE 
              CONTRIBUTIONS FOR INDIVIDUALS NOT ITEMIZING DEDUCTIONS.

    (a) In General.--Subsection (p) of section 170 of the Internal 
Revenue Code of 1986 is amended to read as follows:
    ``(p) Special Rule for Taxpayers Who Do Not Elect To Itemize 
Deductions.--In the case of a taxable year beginning in 2026 or 2027, 
the deduction under this subsection for the taxable year shall be equal 
to so much of the deduction determined under this section (without 
regard to this subsection) for such taxable year as does not exceed an 
amount equal to \1/3\ of the amount of the standard deduction with 
respect to such individual for such taxable year. This subsection shall 
apply only in the case of an individual who does not elect to itemize 
deductions for the taxable year.''.
    (b) Elimination of Penalty.--
            (1) In general.--Section 6662(b) of the Internal Revenue 
        Code of 1986 is amended by striking paragraph (9) and by 
        redesignating paragraph (10) as paragraph (9).
            (2) Increased penalty.--Section 6662 of such Code is 
        amended by striking subsection (l).
            (3) Conforming amendments.--
                    (A) Sections 6662(h)(2)(D) of such Code is amended 
                by striking ``subsection (b)(10)'' and inserting 
                ``subsection (b)(9)''.
                    (B) Section 6664(c)(2) of such Code is amended by 
                striking ``section 6662(b)(10)'' and inserting 
                ``section 6662(b)(9)''.
                    (C) Section 6751(b)(2)(A) of such Code is amended 
                by striking ``by reason of paragraph (9) or (10) of 
                subsection (b) thereof'' and inserting ``by reason of 
                subsection (b)(9) thereof''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2025.
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