,,ii #aaeth ,,congress #ast ,session ,s4 #acdc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #ac1 #bjag,mr4 ,thune 7for himself1 ,mr4 ,casey1 ,mr4 ,wyden1 and ,mr4 ,roberts7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code to extend and modify certain charitable tax provisions4 #a4 ,short title ,this ,act may be cited as the ,charities ,helping ,americans ,regularly ,throughout the ,year ,act of #bjag4 #b4 ,sense of the senate relating to the protection of charitable deductions 7a7 ,findings ,the ,senate makes the following findings3 7#a7 ,the deduction for charitable contributions has been an important and effective part of the tax code for almost #ajj years4 7#b7 ,the deduction for charitable contributions is unique as it is the only provision that encourages taxpayers to give away a portion of their income for the benefit of others4 7#c7 ,in #bjab1 nonprofit organizations provided #aa1djj1jjj jobs1 accounting for #aj4c percent of the country's private-sector workforce4 7#d7 ,in #bjae1 total charitable giving was estimated to be #cgc1bej1jjj1jjj 7a #d4a-percent increase from #bjad7 and accounted for #b4a percent of the gross domestic product4 7b7 ,sense of the ,senate ,it is the sense of the ,senate that-- 7#a7 encouraging charitable giving should be a goal of tax reform2 and 7#b7 ,congress should ensure that the value and scope of the deduction for charitable contributions is not diminished during a comprehensive reform of the tax code4 #c4 ,determination of standard mileage rate for charitable contributions deduction 7a7 ,determination of standard mileage rate for charitable contributions deduction ,subsection 7i7 of section #agj of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7i7 ,standard mileage rate for use of passenger automobile ,for purposes of computing the deduction under this section for use of a passenger automobile1 the standard mileage rate shall be the rate determined by the ,secretary1 which rate shall not be less than the standard mileage rate used for purposes of section #bac4 4 7b7 ,effective date ,the amendment made by this section shall apply to miles traveled after the date of the enactment of this ,act4 #d4 ,modification of substantiation requirements for charitable contributions 7a7 ,in general ,paragraph 7#h7 of section #agj7;f77#h7 of the ,internal ,revenue ,code of #aihf is amended by striking subparagraph 7,d7 and by redesignating subparagraph 7,e7 as subparagraph 7,d74 7b7 ,effective date ,the amendments made by this section shall apply to contributions made in taxable years beginning after ,december #ca1 #bjaf4 #e4 ,mandatory electronic filing for annual returns of exempt organizations 7a7 ,in general ,section #fjcc of the ,internal ,revenue ,code of #aihf is amended by redesignating subsection 7n7 as subsection 7o7 and by inserting after subsection 7m7 the following new subsection3 7n7 ,mandatory electronic filing ,any organization required to file a return under this section shall file such return in electronic form4 4 7b7 ,inspection of electronically filed annual returns ,subsection 7b7 of section #fajd is amended by adding at the end the following3 ,any annual return required to be filed electronically under section #fjcc7n7 shall be made available by the ,secretary to the public in machine readable format44 7c7 ,effective date 7#a7 ,in general ,except as provided in paragraph 7#b71 the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 7#b7 ,transitional relief 7,a7 ,small organizations 7i7 ,in general ,in the case of any small organizations1 or any other organizations for which the ,secretary determines the application of the amendments made by subsection 7a7 would cause undue burden without a delay1 the ,secretary may delay the application of such amendments1 but not later than taxable years beginning #b years after the date of the enactment of this ,act4 7ii7 ,small organization ,for purposes of clause 7i71 the term small organization means any organization-- 7,i7 the gross receipts of which for the taxable year are less than #bjj1jjj2 and 7,,ii7 the aggregate gross assets of which at the end of the taxable year are less than #ejj1jjj4 7,b7 ,organizations filing form #iij-,t ,in the case of any organization described in section #eaa7;a77#b7 of the ,internal ,revenue ,code of #aihf which is subject to the tax imposed by section #eaa7;a77#a7 of such ,code on its unrelated business taxable income1 or any organization required to file a return under section #fjcc of such ,code and include information under subsection 7e7 thereof1 the ,secretary may delay the application of the amendments made by this section1 but not later than taxable years beginning #b years after the date of the enactment of this ,act4 #f4 ,modification of rules relating to donor advised funds 7a7 ,allowance of tax-,free charitable distributions from individual retirement accounts 7#a7 ,in general ,clause 7i7 of section #djh7;d77#h77;,b7 of the ,internal ,revenue ,code of #aihf is amended by striking or any fund or account described in section #diff7;d77#b74 7#b7 ,effective date ,the amendment made by this subsection shall apply to distributions made in taxable years beginning after ,december #ca1 #bjaf4 7b7 ,return disclosures 7#a7 ,distributions ,subsection 7k7 of section #fjcc of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 in paragraph 7#b71 by striking and at the end2 7,b7 in paragraph 7#c71 by striking the period at the end and inserting a comma2 and 7,c7 by adding at the end the following new paragraphs3 7#d7 list the total number of such funds which were in existence for the #cf-month period ending at the close of such taxable year1 7#e7 list the total number of funds described in paragraph 7#d7 which made at least #a grant during the period described in such paragraph1 and 7#f7 set forth-- 7,a7 whether such organization has a publicly available policy with respect to funds which are inactive1 dormant1 or do not make distributions during the period described in paragraph 7#d71 7,b7 a description of the organization's policy for responding to funds described in subparagraph 7,a7 or a statement that no such policy is in effect1 and 7,c7 whether such organization regularly and consistently monitors and enforces compliance with the policy described in subparagraph 7,a7 with respect to such funds4 4 7#b7 ,effective date ,the amendment made by this subsection shall apply to returns for taxable years beginning after ,december #ca1 #bjag4 #g4 ,modification of the tax rate for the excise tax on investment income of private foundations 7a7 ,in general ,section #didj7;a7 of the ,internal ,revenue ,code of #aihf is amended by striking #b percent and inserting #a percent4 7b7 ,elimination of reduced tax where foundation meets certain distribution requirements ,section #didj of such ,code is amended by striking subsection 7e74 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #h4 ,exception from private foundation excess business holdings tax for certain philanthropic business holdings 7a7 ,in general ,section #didc of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7g7 ,exception for certain philanthropic business holdings 7#a7 ,in general ,subsection 7a7 shall not apply with respect to the holdings of a private foundation in any business enterprise which for the taxable year meets-- 7,a7 the exclusive ownership requirements of paragraph 7#b71 7,b7 the all profits to charity requirement of paragraph 7#c71 and 7,c7 the independent operation requirements of paragraph 7#d74 7#b7 ,exclusive ownership ,the exclusive ownership requirements of this paragraph are met if-- 7,a7 all ownership interests in the business enterprise are held by the private foundation at all times during the taxable year1 and 7,b7 all the private foundation's ownership interests in the business enterprise were acquired under the terms of a will or trust upon the death of the testator or settlor1 as the case may be4 7#c7 ,all profits to charity 7,a7 ,in general ,the all profits to charity requirement of this paragraph is met if the business enterprise1 not later than #abj days after the close of the taxable year1 distributes an amount equal to its net operating income for such taxable year to the private foundation4 7,b7 ,net operating income ,for purposes of this paragraph1 the net operating income of any business enterprise for any taxable year is an amount equal to the gross income of the business enterprise for the taxable year1 reduced by the sum of-- 7i7 the deductions allowed by chapter #a for the taxable year which are directly connected with the production of such income1 7ii7 the tax imposed by chapter #a on the business enterprise for the taxable year1 and 7iii7 an amount for a reasonable reserve for working capital and other business needs of the business enterprise4 7#d7 ,independent operation ,the independent operation requirements of this paragraph are met if1 at all times during the taxable year-- 7,a7 no substantial contributor 7as defined in section #dieh7;c77#c77;,c77 to the private foundation1 or family member of such a contributor 7determined under section #dieh7;f77#d771 is a director1 officer1 trustee1 manager1 employee1 or contractor of the business enterprise 7or an individual having powers or responsibilities similar to any of the foregoing71 7,b7 at least a majority of the board of directors of the private foundation are individuals other than individuals who are either-- 7i7 directors or officers of the business enterprise1 or 7ii7 members of the family 7determined under section #dieh7;f77#d77 of a substantial contributor 7as defined in section #dieh7;c77#c77;,c77 to the private foundation1 and 7,c7 there is no loan outstanding from the business enterprise to a substantial contributor 7as so defined7 to the private foundation or a family member of such contributor 7as so determined74 7#e7 ,certain deemed private foundations excluded ,this subsection shall not apply to-- 7,a7 any fund or organization treated as a private foundation for purposes of this section by reason of subsection 7e7 or 7f71 7,b7 any trust described in section #didg7;a77#a7 7relating to charitable trusts71 and 7,c7 any trust described in section #didg7;a77#b7 7relating to split-interest trusts74 4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjag4