[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 680 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 680
To amend the Internal Revenue Code of 1986 to enhance book donations
and literacy.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 20, 2003
Mr. Hatch introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to enhance book donations
and literacy.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF BOOK INVENTORIES.
(a) In General.--Section 170(e)(3) of the Internal Revenue Code of
1986 (relating to certain contributions of ordinary income and capital
gain property) is amended by redesignating subparagraph (C) as
subparagraph (D) and by inserting after subparagraph (B) the following
new subparagraph:
``(C) Special rule for contributions of book
inventory for educational purposes.--
``(i) Contributions of book inventory.--In
determining whether a qualified book
contribution is a qualified contribution,
subparagraph (A) shall be applied without
regard to whether--
``(I) the donee is an organization
described in the matter preceding
clause (i) of subparagraph (A), and
``(II) the property is to be used
by the donee solely for the care of the
ill, the needy, or infants.
``(ii) Amount of reduction.--
Notwithstanding subparagraph (B), the amount of
the reduction determined under paragraph (1)(A)
shall not exceed the amount by which the fair
market value of the contributed property (as
determined by the taxpayer using a bona fide
published market price for such book) exceeds
twice the basis of such property.
``(iii) Qualified book contribution.--For
purposes of this paragraph, the term `qualified
book contribution' means a charitable
contribution of books, but only if the
requirements of clauses (iv) and (v) are met.
``(iv) Identity of donee.--The requirement
of this clause is met if the contribution is to
an organization--
``(I) described in subclause (I) or
(III) of paragraph (6)(B)(i), or
``(II) described in section
501(c)(3) and exempt from tax under
section 501(a) (other than a private
foundation, as defined in section
509(a), which is not an operating
foundation, as defined in section
4942(j)(3)), which is organized
primarily to make books available to
the general public at no cost or to
operate a literacy program.
``(v) Certification by donee.--The
requirement of this clause is met if, in
addition to the certifications required by
subparagraph (A) (as modified by this
subparagraph), the donee certifies in writing
that--
``(I) the books are suitable, in
terms of currency, content, and
quantity, for use in the donee's
educational programs, and
``(II) the donee will use the books
in its educational programs.
``(vi) Bona fide published market price.--
For purposes of this subparagraph, the term
`bona fide published market price' means, with
respect to any book, a price--
``(I) determined using the same
printing and edition,
``(II) determined in the usual
market in which such a book has been
customarily sold by the taxpayer, and
``(III) for which the taxpayer can
demonstrate to the satisfaction of the
Secretary that the taxpayer customarily
sold such books in arm's length
transactions within 7 years preceding
the contribution of such a book.''.
(b) Effective Date.--The amendments made by this section shall
apply to contributions made after the date of the enactment of this Act
<all>