Administration’s FY 2009 Revenue Proposals Permanently Extend Several Charitable Benefits Under Pension Protection Act of 2006, http://www.pgdc.com/files/bluebk08-1.pdf, pp. 28-50
Treasury's "General Explanations of the Administration's Fiscal Year 2009 Revenue Proposals," or the "Blue Book," include a permanent extension of a number of charitable provisions that expired at the end of 2007. These budget recommendations, which were also a part of the 2008 Blue Book, include the following charitable incentives:
- Permanently extend the exclusion from ordinary income of up to $100,000 in assets distributed from an IRA to qualified charitable organizations (excluding non-operating private foundations, supporting organizations, and donor advised funds) for donors over age 70 ½.
- Permanently extend the enhanced charitable deduction for food inventory allowing all businesses—not just C corporations—to claim an enhanced deduction for "apparently wholesome food" given to charitable organizations.
- Permanently extend the enhanced deductions for corporate contributions of computer equipment for educational purposes. This enhanced deduction was originally introduced in the Taxpayer Relief Act of 1997, extended and modified in 2000 and 2004, and extended and modified in 2006.
- Permanently extend the increased AGI contribution limits for partial interests in real property for qualified conservation contributions.
- Permanently extend the basis adjustment to stock of S Corporations that contribute appreciated property to charitable organizations.
- Reduce the two-tier 2%/1% excise tax on private foundations to a flat 1% for tax years after December 31, 2008.
Six Pending Bills in 110th Congress Would Extend Qualified Charitable Distributions—Still Too Early To Predict Outcome, “Qualified Charitable Distributions from Individual Retirement Accounts: A Fact Sheet,” RS22766
The provisions under the Pension Protection Act of 2006 allowing taxpayers to make up to $100,000 in qualified charitable distributions from an IRA to qualified charitable organizations expired on December 31, 2007. Six bills in the 110th Congress would either extend this provision or make it permanent. These include: H. R. 1419 and S. 819 (Public Good IRA Rollover Act of 2007), H.R. 3596 (Charitable Tax Relief Act of 2007), H. R. 3970 (Tax Reduction and Reform Act of 2007), H. R. 4086 Healthy Families and Dedicated Teachers Tax Relief Act of 2007), S. 2264 (No Name), and S. 2886 (Alternative Minimum Tax and Extenders Tax Relief Act of 2008). A seventh bill, H. R. 3996 (the Tax Increase Prevention Act of 2007), originally contained this extender; however, it was stripped in conference before the bill became law. While this level of legislative interest is promising, it is too early to predict its probability of success.