H.R. 6408

116TH CONGRESS
2D SESSION

H.R. 6408

To extend the charitable deduction to all taxpayers regardless
of whether a taxpayer itemizes deductions in order to encourage
and increase charitable giving, and to provide for loans and loan
guarantees to certain public charities.

IN THE HOUSE OF REPRESENTATIVES

MARCH 27, 2020

Mr. MOULTON introduced the following bill; which was referred to the Committee on _____

A BILL

To extend the charitable deduction to all taxpayers regardless of whether a taxpayer itemizes deductions in order to encourage and increase charitable giving, and to provide for loans and loan guarantees to certain public charities.

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

SECTION 1. UNIVERSAL DEDUCTION FOR CHARITABLE GIVING.

(a) IN GENERAL. — Section 62(a)(22) of the Internal Revenue Code of 1986 is amended to read as follows:

"(22) CHARITABLE CONTRIBUTIONS. — The deduction allowed by section 170 (reduced by the portion thereof disallowed under section 68).".

(b) APPLICATION OF OVERALL LIMITATION ON ITEMIZED DEDUCTIONS. — Section 68 of such Code is amended by adding at the end the following new subsection:

"(g) APPLICATION TO DEDUCTION FOR CHARITABLE CONTRIBUTIONS. —

"(1) IN GENERAL. — For purposes of this section, the deduction allowed by section 170 shall be treated as an itemized deduction.

"(2) APPLICATION OF LIMITATION TO ABOVE-THE-LINE DEDUCTION. — For purposes of section 62(a)(22), the portion of the deduction allowed by section 170 for any taxable year which is disallowed under this section is the portion bearing the same ratio as —

"(A) the amount of the reduction under subsection (a) for such taxable year, bears to

"(B) the amount of the itemized deductions otherwise allowable for such taxable year.".

(c) CONFORMING AMENDMENTS. —

(1) Section 62 of such Code is amended by striking subsection (f).

(2) Section 170(b)(1)(H) of such Code is amended by inserting "this section and" after "computed without regard to".

(d) EFFECTIVE DATE. —

(1) IN GENERAL. — The amendments made by this section shall apply to taxable years beginning after December 31, 2019.

(2) CROSS REFERENCE. — For suspension of the application of section 68 of the Internal Revenue Code of 1986 (including the amendments to such section made by subsection (b)), see section 68(f) of such Code.

SEC. 2. LOANS AND LOAN GUARANTEES TO CERTAIN PUBLIC CHARITIES.

(a) IN GENERAL. — Upon the application of any organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code, the Secretary of the Treasury (or the Secretary's delegate) shall, subject to the provisions of this section, make or guarantee a loan to such organization.

(b) LIMITATION ON AGGREGATE AMOUNT LOANS. — The aggregate amount of loans made or guaranteed under this section shall not exceed $60,000,000,000.

(c) CRITERIA. — In carrying out this section, the Secretary (or the Secretary's delegate) shall give priority to eligible organizations that are providing direct assistance in the COVID-19 response effort.

(d) APPROPRIATION. — There are hereby appropriated for the fiscal year ending on September 30, 2020, to the Secretary of the Treasury such sums as may be necessary to carry out this section, which sums shall remain available until expended.

SEC. 3. PAYROLL PROTECTION LOANS AVAILABLE TO PUBLIC CHARITIES WITH MORE THAN 500 EMPLOYEES.

(a) IN GENERAL. — Section 7(a)(36)(D) of the Small Business Act, as added by section 1102(a)(2) of the of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136), is amended by adding at the end the following new clause:

"(vii) CERTAIN PUBLIC CHARITIES ELIGIBLE WITHOUT REGARD TO NUMBER OF EMPLOYEES. — During the covered period, any organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code shall be eligible to receive a covered loan.".

(b) CONFORMING AMENDMENTS. — Section 7(a)(36)(D) of the Small Business Act is further amended —

(1) in clause (i), by striking "nonprofit organization," each place it appears; and

(2) in clause (v), by striking "nonprofit organization,".

(c) EFFECTIVE DATE. — The amendment made by this section shall take effect as if included in section 1102 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136).