With several charitable giving bills awaiting a House vote, the gift of giving back could become more valuable…permanently. Certain critical charitable giving incentives expired on December 31, 2013. On May 29, 2014, the Ways and Means committee approved four individual bills which would permanently reinstate three of the expired charitable giving incentives and extend the deadline through April 15 for individuals making charitable contributions. Below is a brief summary of each individual bill.
- H.R. 4719 (The “Fighting Hunger Incentive Act of 2014”), which would reinstate and make permanent the enhanced deduction for contributions of food inventory.
- H.R. 4619 (The “Permanent IRA Charitable Contribution Act of 2014”), which would reinstate and make permanent the exclusion from gross income for up to $100,000 of qualified charitable distributions from an individual retirement account.
- H.R. 3134 (The “Charitable Giving Extension Act”), which would permit an individual to elect to deduct for a taxable year charitable contributions made after the close of the taxable year but before the date the individual’s income tax return was due to be filed.
- H.R. 2807 (The “Conservation Easement Incentive Act of 2013”), which would reinstate and make permanent some of the liberalized rules for deducting the value of charitable contributions of conservation easements.
These bills now move on to a floor vote by the House. The hope is that these bills encourage charitable giving and strengthen the financial position of nonprofit organizations so that they may continue to meet the needs of their communities.