From the national Council on Foundations‘ May 27 Legislative Update:
By a vote of 263–160, the House last week passed H.R.6049, which combines one-year extensions of tax provisions that expired in 2007 and those that will expire in 2008. Amendments, including one to add an Alternative Minimum Tax Patch (AMT), failed. The bill does include an extension of the IRA charitable rollover, at $465 million over 10 years.
Other provisions (and their cost over 10 years):
- The enhanced charitable deduction of food inventory ($71 million), book inventory ($31 million), and computers ($260 million)
- Modification of the tax treatment of certain payments under existing arrangements to controlling exempt organizations ($35 million)
Neither the House nor Senate versions change the extension of the IRA charitable rollover in its most recent form (which expired in December 2007), as both bills exclude distributions from IRA accounts to donor-advised funds, supporting organizations, and private foundations. In addition, neither bill changes the age requirement (70 1/2) nor donation cap ($100,000 per taxpayer per taxable year).
The Senate bill will not be marked up in the Senate Finance Committee until June, according to Chairman Max Baucus (D-MT). Although all differences between the bills will have to be worked out in conference, a final bill is expected to be sent to the President sometime after the November 2008 election. COF’s Public Policy team does expect that all charitable giving incentives included in the final bill will be retroactive to 2008.
