,i #aaeth ,,congress #ast ,session ,h4 ,r4 #hid ,,in ,,the ,,house ,,of ,,representatives ,february #f1 #bjag,mr4 ,paulsen introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to exclude from gross income certain interest and money market fund dividend income payments to charity and to modify the requirements relating to the reporting of such payments4 #a4 ,short title ,this ,act may be cited as the ,interest for ,others ,act of #bjag4 #b4 ,exclusion from gross income of certain interest and money market fund dividends paid to charity 7a7 ,in general ,part ,,iii of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #aci;,e the following3 #aci;,f4 ,interest and money market fund dividends donated to charity 7a7 ,general rule ,in the case of a taxpayer who is an individual1 trust1 or estate1 gross income for a taxable year shall not include the amount of a charitable contribution pursuant to a qualified program made during the taxable year in which a calendar year ends4 7b7 ,limitations 7#a7 ,exclusion limited to interest and dividend income ,the amount excluded from gross income by subsection 7a7 for a calendar year shall not exceed the sum of-- 7,a7 in the case of a deposit in a financial institution1 the lesser of-- 7i7 the amount of interest paid to the taxpayer on such deposit for the calendar year1 and 7ii7 the aggregate charitable contribution from such deposit during the calendar year1 and 7,b7 in the case of shares in a money market fund1 the lesser of-- 7i7 the amount of dividends paid with respect to such shares for the calendar year1 and 7ii7 the aggregate charitable contribution from such shares during the calendar year4 7#b7 ,account limitation ,the amount excluded from gross income by subsection 7a7 from an account for a calendar year shall not exceed #ej4 7c7 ,qualified program ,for purposes of this section-- 7#a7 ,in general ,the term qualified program means a program adopted by a financial institution or a money market fund 7as the case may be7 under which-- 7,a7 the owner of a deposit in the financial institution or of shares in the money market fund-- 7i7 elects to participate in the program1 7ii7 elects the amount of donation from the owner's deposit or shares1 and 7iii7 designates an entity described in section #agj7;c7 to receive the donation1 and 7,b7 the financial institution or money market fund makes1 directly or through a qualified aggregator1 a contribution of the amount elected under subparagraph 7,a77ii7 to the entity designated under subparagraph 7,a77iii74 7#b7 ,qualified aggregator 7,a7 ,in general ,the term qualified aggregator means an organization-- 7i7 which is described in section #eja7;c77#c7 and exempt from tax under section #eja7;a71 and 7ii7 the purpose of which is to facilitate charitable contributions under a qualified program by aggregating contributions from deposits and funds and payments to entities designated to receive such payments4 7,b7 ,administrative costs ,an entity shall not fail to be treated as a qualified aggregator solely because the entity retains a portion of contributions from deposits and funds to cover its administrative costs if the qualified aggregator provides in advance a notice of-- 7i7 its intent to retain a portion1 and 7ii7 the method to be used to calculate the amount to be so retained4 7,c7 ,special rule regarding status to receive charitable contributions ,a program shall not fail to be described in paragraph 7#a7 merely because the ultimate recipient of a contribution is ineligible to receive charitable contributions so long as the qualified aggregator and the financial institution or money market fund 7as the case may be7 made an initial good faith determination that contributions to recipients under the program would be qualified under section #agj7;c7 to receive charitable contributions4 ,for purposes of the preceding sentence1 a financial institution or money market fund may rely upon the representation of the qualified aggregator that the organizations to which distributions will be made qualify under section #agj7;c7 to receive charitable contributions4 7d7 ,other definitions ,for purposes of this section-- 7#a7 ,deposit ,the term deposit means any deposit1 withdrawable account1 or withdrawable or repurchasable share4 7#b7 ,financial institution ,the term financial institution means-- 7,a7 any bank 7as defined in section #eha71 7,b7 any institution described in section #eia1 7,c7 any credit union the deposits or accounts in which are insured under ,federal or ,state law or are protected or guaranteed under ,state law1 and 7,d7 any similar institution chartered and supervised under ,federal or ,state law4 7#c7 ,money market fund ,the term money market fund means an open-end investment management company registered under the ,investment ,company ,act of #aidj and subject to ,rule #b;a-#g thereof4 7#d7 ,charitable contribution ,the term charitable contribution means a charitable contribution as defined in section #agj7;c74 4 7b7 ,clerical amendment ,the table of sections for part ,,iii of subchapter ,b of chapter #a of such ,code is amended by inserting after the item relating to section #aci;,e the following3 ,sec4 #aci;,f4 ,interest and money market fund dividends donated to charity4 4 7c7 ,effective date ,the amendments made by this section shall apply to all interest and money market fund dividends paid after ,december #ca1 #bjaf4 #c4 ,denial of deduction of amounts excluded from income under section #aci;,f 7a7 ,in general ,section #agj7;f7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 7#ai7 ,certain donated interest and money market fund dividends ,amounts excluded from gross income under section #aci;,f shall not be taken into account as a charitable contribution for purposes of this section4 4 7b7 ,effective date ,the amendment made by this section shall apply to all charitable contributions made after ,december #ca1 #bjaf4 #d4 ,information returns 7a7 ,money market funds ,section #fjdb7;b77#b7 of the ,internal ,revenue ,code of #aihf is amended by striking or at the end of subparagraph 7,a71 by striking the period at the end of subparagraph 7,b7 and inserting 1 or and by adding at the end the following3 7,c7 which is specifically excluded from gross income of the payee by section #aci;,f7a74 4 7b7 ,payments of interest ,section #fjdi7;b77#b7 of such ,code is amended by striking and at the end of subparagraph 7,b71 by striking the period at the end of subparagraph 7,c7 and inserting 1 and1 and by adding at the end the following3 7,d7 interest which is specifically excluded from gross income of the payee by section #aci;,f7a74 4 7c7 ,returns regarding payments excluded from gross income under section #aci;,f ,subpart ,b of part ,,iii of subchapter ,a of chapter #fa of such ,code is amended by inserting after section #fjdi the following3 #fjdi;,a4 ,returns regarding interest and money market fund dividends contributed to charity ,every person who1 during any calendar year-- 7#a7 makes payments of interest or dividends aggregating #aj or more and who has in effect a qualified program 7as defined in section #aci;,f7c77#a771 or 7#b7 is a qualified aggregator 7as defined in section #aci;,f7c77#b77 and who1 under such a qualified program1 receives contributions and makes payments aggregating #aj or more to any entity described in section #agj7;c71 shall make a return according to the forms or regulations prescribed by the ,secretary setting forth the aggregate amount of such payments1 and the name and address of the person to whom paid4 4 7d7 ,conforming amendment ,the table of sections for subpart ,b of part ,,iii of subchapter ,a of chapter #fa of such ,code is amended by inserting after the item relating to section #fjdi the following new item3 ,sec4 #fjdi;,a4 ,returns regarding interest and money market fund dividends contributed to charity4 4 7e7 ,effective date ,the amendments made by this section shall apply to all payments made after ,december #ca1 #bjaf4