S.Amdt. 1659

SA 1659. Mr. THUNE submitted an amendment intended to be proposed by
him to the bill H.R. 1, to provide for reconciliation pursuant to
titles II and V of the concurrent resolution on the budget for fiscal
year 2018; which was ordered to lie on the table; as follows:

At the end of subpart B of part IX of subtitle C of title
I, insert the following:

SEC. 13824. SENSE OF THE SENATE RELATING TO THE PROTECTION OF
CHARITABLE DEDUCTIONS.

(a) Findings.--The Senate makes the following findings:
(1) The deduction for charitable contributions has been an
important and effective part of the tax code for almost 100
years.
(2) The deduction for charitable contributions is unique as
it is the only provision

[[Page S7487]]

that encourages taxpayers to give away a portion of their
income for the benefit of others.
(3) In 2012, nonprofit organizations provided 11,400,000
jobs, accounting for 10.3 percent of the country's private-
sector workforce.
(4) In 2015, total charitable giving was estimated to be
$373,250,000,000 (a 4.1-percent increase from 2014) and
accounted for 2.1 percent of the gross domestic product.
(b) Sense of the Senate.--It is the sense of the Senate
that--
(1) encouraging charitable giving should be a goal of tax
reform; and
(2) Congress should ensure that the value and scope of the
deduction for charitable contributions is not diminished
during a comprehensive reform of the tax code.

SEC. 13825. INCREASE IN CARRYOVER PERIOD FOR EXCESS
CHARITABLE CONTRIBUTIONS.

(a) Individuals.--Section 170(d)(1)(A) is amended--
(1) by striking ``5 succeeding taxable years'' and
inserting ``15 succeeding taxable years'', and
(2) by striking ``the second, third, fourth, or fifth
succeeding taxable year'' in clause (ii) and inserting ``the
second or any succeeding taxable year in such 15-year
period''.
(b) Corporations.--Section 170(d)(2)(A) is amended--
(1) by striking ``5 succeeding taxable years'' and
inserting ``15 succeeding taxable years'', and
(2) by striking ``the second, third, fourth, or fifth
succeeding taxable year'' in clause (ii) and inserting ``the
second or any succeeding taxable year in such 15-year
period''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2017.

SEC. 13826. DETERMINATION OF STANDARD MILEAGE RATE FOR
CHARITABLE CONTRIBUTIONS DEDUCTION.

(a) Determination of Standard Mileage Rate for Charitable
Contributions Deduction.--Subsection (i) of section 170 is
amended to read as follows:
``(i) Standard Mileage Rate for Use of Passenger
Automobile.--For purposes of computing the deduction under
this section for use of a passenger automobile, the standard
mileage rate shall be the rate determined by the Secretary,
which rate shall not be less than the standard mileage rate
used for purposes of section 213.''.
(b) Effective Date.--The amendment made by this section
shall apply to miles traveled after the date of the enactment
of this Act.

SEC. 13827. MODIFICATION OF RULES RELATING TO DONOR ADVISED
FUNDS.

(a) Allowance of Tax-Free Charitable Distributions From
Individual Retirement Accounts.--
(1) In general.--Clause (i) of section 408(d)(8)(B) is
amended by striking ``or any fund or account described in
section 4966(d)(2)''.
(2) Effective date.--The amendment made by this subsection
shall apply to distributions made in taxable years beginning
after December 31, 2016.
(b) Return Disclosures.--
(1) Distributions.--Subsection (k) of section 6033 is
amended--
(A) in paragraph (2), by striking ``and'' at the end;
(B) in paragraph (3), by striking the period at the end and
inserting a comma; and
(C) by adding at the end the following new paragraphs:
``(4) list the total number of such funds which were in
existence for the 36-month period ending at the close of such
taxable year,
``(5) list the total number of funds described in paragraph
(4) which made at least 1 grant during the period described
in such paragraph, and
``(6) set forth--
``(A) whether such organization has a publicly available
policy with respect to funds which are inactive, dormant, or
do not make distributions during the period described in
paragraph (4),
``(B) a description of the organization's policy for
responding to funds described in subparagraph (A) or a
statement that no such policy is in effect, and
``(C) whether such organization regularly and consistently
monitors and enforces compliance with the policy described in
subparagraph (A) with respect to such funds.''.
(2) Effective date.--The amendment made by this subsection
shall apply to returns for taxable years beginning after
December 31, 2017.

SEC. 13828. MODIFICATION OF THE TAX RATE FOR THE EXCISE TAX
ON INVESTMENT INCOME OF PRIVATE FOUNDATIONS.

(a) In General.--Section 4940(a) is amended by striking ``2
percent'' and inserting ``1 percent''.
(b) Elimination of Reduced Tax Where Foundation Meets
Certain Distribution Requirements.--Section 4940 of such Code
is amended by striking subsection (e).
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.

SEC. 13829. EXCEPTION FROM PRIVATE FOUNDATION EXCESS BUSINESS
HOLDING TAX FOR INDEPENDENTLY-OPERATED
PHILANTHROPIC BUSINESS HOLDINGS.

(a) In General.--Section 4943 is amended by adding at the
end the following new subsection:
``(g) Exception for Certain Holdings Limited to
Independently-operated Philanthropic Business.--
``(1) In general.--Subsection (a) shall not apply with
respect to the holdings of a private foundation in any
business enterprise which meets the requirements of
paragraphs (2), (3), and (4) for the taxable year.
``(2) Ownership.--The requirements of this paragraph are
met if--
``(A) 100 percent of the voting stock in the business
enterprise is held by the private foundation at all times
during the taxable year, and
``(B) all the private foundation's ownership interests in
the business enterprise were acquired by means other than by
purchase.
``(3) All profits to charity.--
``(A) In general.--The requirements of this paragraph are
met if the business enterprise, not later than 120 days after
the close of the taxable year, distributes an amount equal to
its net operating income for such taxable year to the private
foundation.
``(B) Net operating income.--For purposes of this
paragraph, 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 year,
reduced by the sum of--
``(i) the deductions allowed by chapter 1 for the taxable
year which are directly connected with the production of such
income,
``(ii) the tax imposed by chapter 1 on the business
enterprise for the taxable year, and
``(iii) an amount for a reasonable reserve for working
capital and other business needs of the business enterprise.
``(4) Independent operation.--The requirements of this
paragraph are met if, at all times during the taxable year--
``(A) no substantial contributor (as defined in section
4958(c)(3)(C)) to the private foundation or family member (as
determined under section 4958(f)(4)) of such a contributor is
a director, officer, trustee, manager, employee, or
contractor of the business enterprise (or an individual
having powers or responsibilities similar to any of the
foregoing),
``(B) at least a majority of the board of directors of the
private foundation are persons who are not--
``(i) directors or officers of the business enterprise, or
``(ii) family members (as so determined) of a substantial
contributor (as so defined) to the private foundation, and
``(C) there is no loan outstanding from the business
enterprise to a substantial contributor (as so defined) to
the private foundation or to any family member of such a
contributor (as so determined).
``(5) Certain deemed private foundations excluded.--This
subsection shall not apply to--
``(A) any fund or organization treated as a private
foundation for purposes of this section by reason of
subsection (e) or (f),
``(B) any trust described in section 4947(a)(1) (relating
to charitable trusts), and
``(C) any trust described in section 4947(a)(2) (relating
to split-interest trusts).''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2017.
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