New House legislation would extend the charitable giving tax break to non-itemizers to encourage more donations during the coronavirus pandemic.
The Universal Giving Pandemic Response Act (H.R. 7324), introduced June 24 by Reps. Mark Walker, R-N.C., and Chris Pappas, D-N.H., would make available for tax years 2019 and 2020 an above-the-line charitable deduction valued at up to one-third of the standard deduction, or about $4,000 for individual filers and $8,000 for married joint filers.
The bill is identical to bipartisan Senate legislation (S. 4032) introduced June 22. The measures would go much further than the $300 deduction included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136).
“Nonprofits and charitable organizations have long been leaders on the front lines of this pandemic, putting Americans first and aiding recovery efforts in our communities,” Walker said in a statement. “By increasing incentives for charitable giving, we can embolden our citizens to give back to those who have repeatedly given to us in this time of need.”
“Expanding the charitable giving tax credit is the easiest way to support our non-profits in this difficult time while also recognizing the charitable spirit of Granite Staters,” said Pappas, referring to New Hampshire residents.
Independent Sector, which represents the nonprofit sector, is urging its members to write to Congress in support of the legislation. The proposal could unlock more than $17 billion in annual giving if made permanent, Independent Sector said, citing research it commissioned.
In April, Walker introduced the Coronavirus Help and Response Initiative Through Year 2022 Act (H.R. 6490), which would establish a universal charitable deduction for non-itemizers, effective through the end of fiscal 2022, that would amount to about $4,000 for individual filers and $8,000 for couples filing jointly.