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The Care
Act- (2006)
Many of the Provisions of the CARE Act are incorporated into
the Pension Protection Act.
For a copy of HR 4 go to PANO’s Legislative Action Center
powered by Capwiz XC at
http://capwiz.com/pano/issues/bills/?bill=8945106.
The
Care Act-
(2005)
12/05 U.S. Senate Approves Nonprofit Reforms in
Reconciliation Bill.
On Nov 18, 2005 the U.S. Senate passed the Tax
Relief Act of 2005, which included charitable reform legislation
and giving incentives. The charitable giving incentives
included in the TAX Relief Act were previously part of Senator
Rick Santorum's CARE Act, were only temporary, to expire on
January 1, 2008. Of the remaining provisions of the CARE Act,
some became orphaned, others attached to the Pension Protection
Act of 2006. The charitable giving incentives included:
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The
non-itemizer deduction: This would permit taxpayers who do
not itemize deductions on their income taxes to take a
deduction for their total cash contributions over $210 for
single filers and over $420 for joint filers. Taxpayers who
itemize deductions will be permitted to deduct the total of
both cash and non-cash contributions over $210 ($420 for joint
filers). New substantiation rules apply for non-cash gifts of
$250 or more.
-
The IRA
Rollover provision: This would permit taxpayers over age 70 ½
to make tax-free distributions from their IRAs directly to
charitable organization.
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The Artists
Deduction: Grant enhanced tax deduction (fair market value)
for gifts of literary, musical, artistic or scholarly
compositions. [Amendment 2670 Section 308]
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Modifications
to grant enhanced deductions to corporations for contributions
of food and book inventory.
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Conservation
Easements: Encouragement of contributions of capital gain real
property made for conservation purposes. [Amendment 2670
Section 307]
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Mileage
reimbursements to charitable volunteers to be excluded from
gross income. Expenses not reimbursed, but incurred through
use of volunteer’s own vehicle for the benefit of the
charitable organization shall be deductible using business
mileage rates. [Amendment 2670 Section 309, Section 139B]
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Increase
incentives for S Corporations to make charitable
contributions. [Amendment 2670 Section 402]
The amended Tax Relief Act [S. 2020] then moved to Conference
Committee with the House. For the description of the Chairman’s
modification to the Tax Relief Act by the Joint Committee on
Taxation, go to
http://www.house.gov/jct/x-77-05.pdf. For
additional Information go to
http://www.independentsector.org/programs/gr/charityreform.html.
For more information see
http://www.ombwatch.org/article/articleview/3177/1/403
The
On Jan. 24, 2005 Senator Rick Santorum (R-PA) introduced the
Family and Community Protection Act of 2005 (S. 6), a tax and
welfare reform bill that included provisions from the Charity,
Aid, Recovery and Empowerment (CARE) Act. Senate bill 6
included a provision allowing a deduction for a portion of
charitable contributions made by individuals who do not itemize
(the non-itemizer provision). Single filers would be allowed to
deduct total contributions from $250 to $500 (Joint filers from
$500 to $1000). PANO strongly supports the CARE Act and
companion legislation.
Some of issues addressed in the CARE Act were
adopted by the Senate into the Hurricane relief package. Two
key provisions issues from the CARE Act that were not included
in the Hurricane relief package were the non-itemizer tax
deduction and the IRA rollover provision.
The Care Act-
(2004)
The CARE Act was offered as an amendment to S. 1637 by
Senators Santorum (R-PA) and Lieberman (D-CT). This amendment
includes charitable giving incentives, the nonprofit lobbying
simplification provision, restored funding for the Social
Services Block Grant, and all other provisions in the CARE Act
that was passed independently by the Senate last year with a
resounding 95-5 vote. A companion bill, the Charitable Giving
Act (H.R. 7), was passed by the House of Representatives last
fall, and the bill has been waiting for action by the Senate to
go to a House-Senate conference to resolve differences between
the two bills. The sponsors hoped that the bill would move
forward as part of another piece of legislation. A media event
with key House and Senate sponsors of the CARE Act was held on
March 11, 2004. PANO urged members to contact their US Senators
urging them to both to send the CARE Act to conference
Committee and to pass the CARE Act amendment to S. 1637.
September 26, 2005
Senators
Santorum and Lieberman to propose new CARE Act bill on Tuesday:
Senator Santorum and Senators Lieberman have announced that
they will propose a new CARE Act on Tuesday, September 27. This
bill will be a freestanding piece of legislation containing key
portions form the earlier CARE Act. A draft bill and a Dear
Colleague letter has been circulating through Senate offices
since Friday. Provisions of this new CARE Act include the
non-itemizer tax deduction, the IRA rollover provision, the
corporate tax deduction for certain food donations, corporate
tax deduction for donated books, $150 million for the Capital
Compassion Fund for capacity building, and over $1 billion
additional funding for the Social Services Block Grant.
The Charity, Aid, Recovery, and Empowerment (CARE) Act was
first proposed in both the 108th and the 109th Congress. While
it received significant bipartisan support, the bill became
mired in partisan politics. The CARE Act was reintroduced as
part of an existing bill the MORE Act (S. 6).
Earlier this month, Certain provision of the CARE Act were
incorporated into the Katrina Emergency Tax Relief Act of 2005 (H.R
3768). Unfortunately, the hurricane relief bill is only a a
short-term quick-fix limited in scope and duration. Also,
provisions like the non-itemizer tax deduction, the IRA rollover
provision, and funding for the Social Services Block Grant were
noticeably omitted.
This new CARE Act will be a stand-alone bill incorporating
many of the . Unlike the hurricane relief bill, the new CARE Act
will address the long-term needs of the charitable sector, by
improving incentives for charitable giving.
PANO supports the CARE Act as it pertains to charitable
giving incentives. As such, we urge your support for the CARE
Act. For More information on the CARE Act please go to
http://www.independentsector.org/programs/gr/CAREAct2003.html.
September 21 2005
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