,i  #aae? ,,congress  #a/ ,session  ,h4 
,r4 #biaf  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,june #ae1 #bjag,mr4  
,kelly ( ,p5nsylvania 7= himself & ,mr4 
,blum5au]7 introduc$ ! foll[+ bill2 :i* 
0 ref]r$ to ! ,committee on ,ways &     
,means  ,a ,,bill  ,to am5d ! ,int]nal  
,rev5ue ,code to ext5d & modify c]ta9   
*>itable tax provisions4  #a4 ,%ort     
title ,?is ,act may be cit$ z ! ,*>ities
 ,help+ ,am]icans ,regul>ly ,?r\gh\t !  
,ye> ,act ( #bjag4  #b4 ,s5se ( ! s5ate 
relat+ to ! protection ( *>itable       
d$uctions  7a7 ,f9d+s ,! ,s5ate makes ! 
foll[+ f9d+s3  7#a7 ,! d$uction =       
*>itable contributions has be5 an       
important & effective "p ( ! tax code = 
almo/ #ajj ye>s4  7#b7 ,! d$uction =    
*>itable contributions is unique z x is 
! only provision t enc\rages taxpay]s to
 give away a portion ( _! income = !    
b5efit ( o!rs4  7#c7 ,9 #bjab1 nonpr(it 
organizations provid$ #aa1djj1jjj jobs1 
acc\nt+ = #aj4c p]c5t ( ! c\ntry's      
private-sector work=ce4  7#d7 ,9 #bjae1 

total *>itable giv+ 0 e/imat$ to be     
#cgc1bej1jjj1jjj 7a #d4a-p]c5t increase 
f #bjad7 & acc\nt$ = #b4a p]c5t ( !     
gross dome/ic product4  7b7 ,s5se ( !   
,s5ate ,x is ! s5se ( ! ,s5ate t-- 7#a7 
enc\rag+ *>itable giv+ %\ld be a goal ( 
tax re=m2 &  7#b7 ,congress %\ld ensure 
t ! value & scope ( ! d$uction =        
*>itable contributions is n dim9i%$ dur+
 a compreh5sive re=m ( ! tax code4  #c4 
,det]m9ation ( /&>d mileage rate =      
*>itable contributions d$uction  7a7    
,det]m9ation ( /&>d mileage rate =      
*>itable contributions d$uction         
,subsection 7i7 ( section #agj ( !      
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
to read z foll[s3  7i7 ,/&>d mileage    
rate = use ( pass5g] automobile ,=      
purposes ( comput+ ! d$uction "u ?is    
section = use ( a pass5g] automobile1 ! 
/&>d mileage rate %all be ! rate det]m9$
 by ! ,secret>y1 :i* rate %all n be less
 ?an ! /&>d mileage rate us$ = purposes 
( section #bac4  4  7b7 ,effective date 
,! am5dm5t made by ?is section %all     

apply to miles travel$ aft] ! date ( !  
enactm5t ( ?is ,act4  #d4 ,modification 
( sub/antiation requirem5ts = *>itable  
contributions  7a7 ,9 g5]al ,p>agraph   
7#h7 ( section #agj7;f77#h7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf is am5d$ by /rik+
 subp>agraph 7,d7 & by r$esignat+       
subp>agraph 7,e7 z subp>agraph 7,d74    
7b7 ,effective date ,! am5dm5ts made by 
?is section %all apply to contributions 
made 9 taxable ye>s beg9n+ aft] ,decemb]
 #ca1 #bjaf4  #e4 ,m&atory electronic   
fil+ = annual returns ( exempt          
organizations  7a7 ,9 g5]al ,section    
#fjcc ( ! ,int]nal ,rev5ue ,code ( #aihf
 is am5d$ by r$esignat+ subsection 7n7 z
 subsection 7o7 & by ins]t+ aft]        
subsection 7m7 ! foll[+ new subsection3 
7n7 ,m&atory electronic fil+ ,any       
organization requir$ to file a return "u
 ?is section %all file su* return 9     
electronic =m4  4  7b7 ,inspection (    
electronically fil$ annual returns      
,subsection 7b7 ( section #fajd is am5d$
 by add+ at ! end ! foll[+3 ,any annual 

return requir$ to be fil$ electronically
 "u section #fjcc7n7 %all be made       
available by ! ,secret>y to ! public 9  
ma*9e readable =mat44  7c7 ,effective   
date  7#a7 ,9 g5]al ,except z provid$ 9 
p>agraph 7#b71 ! am5dm5ts made by ?is   
section %all apply to taxable ye>s      
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4  7#b7 ,transitional relief  7,a7  
,small organizations  7i7 ,9 g5]al ,9 ! 
case ( any small organizations1 or any  
o!r organizations = :i* ! ,secret>y     
det]m9es ! application ( ! am5dm5ts made
 by subsection 7a7 w\ld cause undue     
burd5 )\t a delay1 ! ,secret>y may delay
 ! application ( su* am5dm5ts1 b n lat] 
?an taxable ye>s beg9n+ #b ye>s aft] !  
date ( ! enactm5t ( ?is ,act4  7ii7     
,small organization ,= purposes ( clause
 7i71 ! t]m small organization means any
 organization-- 7,i7 ! gross receipts ( 
:i* = ! taxable ye> are less ?an        
#bjj1jjj2 &  7,,ii7 ! aggregate gross   
assets ( :i* at ! end ( ! taxable ye>   
are less ?an #ejj1jjj4  7,b7            

,organizations fil+ =m #iij-,t ,9 ! case
 ( any organization describ$ 9 section  
#eaa7;a77#b7 ( ! ,int]nal ,rev5ue ,code 
( #aihf :i* is subject to ! tax impos$  
by section #eaa7;a77#a7 ( su* ,code on  
its unrelat$ bus9ess taxable income1 or 
any organization requir$ to file a      
return "u section #fjcc ( su* ,code &   
include in=mation "u subsection 7e7     
!re(1 ! ,secret>y may delay !           
application ( ! am5dm5ts made by ?is    
section1 b n lat] ?an taxable ye>s      
beg9n+ #b ye>s aft] ! date ( ! enactm5t 
( ?is ,act4  #f4 ,modification ( rules  
relat+ to donor advis$ funds  7a7       
,all[ance ( tax-,free *>itable          
di/ributions f individual retirem5t     
acc\nts  7#a7 ,9 g5]al ,clause 7i7 (    
section #djh7;d77#h77;,b7 ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
or any fund or acc\nt describ$ 9 section
 #diff7;d77#b74  7#b7 ,effective date ,!
 am5dm5t made by ?is subsection %all    
apply to di/ributions made 9 taxable    
ye>s beg9n+ aft] ,decemb] #ca1 #bjaf4   

7b7 ,return disclosures  7#a7           
,di/ributions ,subsection 7k7 ( section 
#fjcc ( ! ,int]nal ,rev5ue ,code ( #aihf
 is am5d$-- 7,a7 9 p>agraph 7#b71 by    
/rik+ & at ! end2  7,b7 9 p>agraph 7#c71
 by /rik+ ! p]iod at ! end & ins]t+ a   
comma2 &  7,c7 by add+ at ! end ! foll[+
 new p>agraphs3  7#d7 li/ ! total numb] 
( su* funds :i* 7 9 exi/5ce = ! #cf-mon?
 p]iod end+ at ! close ( su* taxable    
ye>1  7#e7 li/ ! total numb] ( funds    
describ$ 9 p>agraph 7#d7 :i* made at    
lea/ #a grant dur+ ! p]iod describ$ 9   
su* p>agraph1 &  7#f7 set =?-- 7,a7 :e!r
 su* organization has a publicly        
available policy ) respect to funds :i* 
are inactive1 dormant1 or d n make      
di/ributions dur+ ! p]iod describ$ 9    
p>agraph 7#d71  7,b7 a description ( !  
organization's policy = respond+ to     
funds describ$ 9 subp>agraph 7,a7 or a  
/atem5t t no su* policy is 9 effect1 &  
7,c7 :e!r su* organization regul>ly &   
consi/5tly monitors & en=ces compliance 
) ! policy describ$ 9 subp>agraph 7,a7 )

 respect to su* funds4  4  7#b7         
,effective date ,! am5dm5t made by ?is  
subsection %all apply to returns =      
taxable ye>s beg9n+ aft] ,decemb] #ca1  
#bjag4  #g4 ,modification ( ! tax rate =
 ! excise tax on inve/m5t income (      
private f\ndations  7a7 ,9 g5]al        
,section #didj7;a7 ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ by /rik+ #b p]c5t
 & ins]t+ #a p]c5t4  7b7 ,elim9ation (  
r$uc$ tax :]e f\ndation meets c]ta9     
di/ribution requirem5ts ,section #didj (
 su* ,code is am5d$ by /rik+ subsection 
7e74  7c7 ,effective date ,! am5dm5ts   
made by ?is section %all apply to       
taxable ye>s beg9n+ aft] ! date ( !     
enactm5t ( ?is ,act4  #h4 ,exception f  
private f\ndation excess bus9ess hold+s 
tax = c]ta9 philan?ropic bus9ess hold+s 
7a7 ,9 g5]al ,section #didc ( ! ,int]nal
 ,rev5ue ,code ( #aihf is am5d$ by add+ 
at ! end ! foll[+ new subsection3  7g7  
,exception = c]ta9 philan?ropic bus9ess 
hold+s  7#a7 ,9 g5]al ,subsection 7a7   
%all n apply ) respect to ! hold+s ( a  

private f\ndation 9 any bus9ess         
ent]prise :i* = ! taxable ye> meets--   
7,a7 ! exclusive own]%ip requirem5ts (  
p>agraph 7#b71  7,b7 ! all pr(its to    
*>ity requirem5t ( p>agraph 7#c71 &     
7,c7 ! indep5d5t op]ation requirem5ts ( 
p>agraph 7#d74  7#b7 ,exclusive own]%ip 
,! exclusive own]%ip requirem5ts ( ?is  
p>agraph are met if--  7,a7 all own]%ip 
int]e/s 9 ! bus9ess ent]prise are held  
by ! private f\ndation at all times dur+
 ! taxable ye>1 &  7,b7 all ! private   
f\ndation's own]%ip int]e/s 9 ! bus9ess 
ent]prise 7 acquir$ "u ! t]ms ( a w or  
tru/ ^u ! dea? ( ! te/ator or settlor1 z
 ! case may be4  7#c7 ,all pr(its to    
*>ity  7,a7 ,9 g5]al ,! all pr(its to   
*>ity requirem5t ( ?is p>agraph is met  
if ! bus9ess ent]prise1 n lat] ?an #abj 
days aft] ! close ( ! taxable ye>1      
di/ributes an am\nt equal to its net    
op]at+ income = su* taxable ye> to !    
private f\ndation4  7,b7 ,net op]at+    
income ,= purposes ( ?is p>agraph1 ! net
 op]at+ income ( any bus9ess ent]prise =

 any taxable ye> is an am\nt equal to ! 
gross income ( ! bus9ess ent]prise = !  
taxable ye>1 r$uc$ by ! sum (--  7i7 !  
d$uctions all[$ by *apt] #a = ! taxable 
ye> :i* are directly connect$ ) !       
production ( su* income1  7ii7 ! tax    
impos$ by *apt] #a on ! bus9ess         
ent]prise = ! taxable ye>1 &  7iii7 an  
am\nt = a reasonable res]ve = work+     
capital & o!r bus9ess ne$s ( ! bus9ess  
ent]prise4  7#d7 ,indep5d5t op]ation ,! 
indep5d5t op]ation requirem5ts ( ?is    
p>agraph are met if1 at all times dur+ !
 taxable ye>--  7,a7 no sub/antial      
contributor 7z def9$ 9 section          
#dieh7;c77#c77;,c77 to ! private        
f\ndation1 or family memb] ( su* a      
contributor 7det]m9$ "u section         
#dieh7;f77#d771 is a director1 (fic]1   
tru/ee1 manag]1 employee1 or contractor 
( ! bus9ess ent]prise 7or an individual 
hav+ p[]s or responsibilities simil> to 
any ( ! =ego+71  7,b7 at lea/ a majority
 ( ! bo>d ( directors ( ! private       
f\ndation are individuals o!r ?an       

individuals :o are ei!r--  7i7 directors
 or (fic]s ( ! bus9ess ent]prise1 or    
7ii7 memb]s ( ! family 7det]m9$ "u      
section #dieh7;f77#d77 ( a sub/antial   
contributor 7z def9$ 9 section          
#dieh7;c77#c77;,c77 to ! private        
f\ndation1 &  7,c7 !re is no loan out/&+
 f ! bus9ess ent]prise to a sub/antial  
contributor 7z s def9$7 to ! private    
f\ndation or a family memb] ( su*       
contributor 7z s det]m9$74  7#e7 ,c]ta9 
deem$ private f\ndations exclud$ ,?is   
subsection %all n apply to-- 7,a7 any   
fund or organization treat$ z a private 
f\ndation = purposes ( ?is section by   
reason ( subsection 7e7 or 7f71  7,b7   
any tru/ describ$ 9 section             
#didg7;a77#a7 7relat+ to *>itable       
tru/s71 &  7,c7 any tru/ describ$ 9     
section #didg7;a77#b7 7relat+ to        
split-int]e/ tru/s74  4  7b7 ,effective 
date ,! am5dm5ts made by ?is section    
%all apply to taxable ye>s beg9n+ aft]  
,decemb] #ca1 #bjag4