S. 566Senate118th Congress (2023-2025)In Committee

Charitable Act

A bill to amend the Internal Revenue Code of 1986 to modify and extend the deduction for charitable contributions for individuals not itemizing deductions.

AI-Generated Summary

Updated January 20, 2026 at 4:03 AM UTC

The Charitable Act changes the tax code to let people who take the standard deduction claim a charitable contribution deduction. For tax years starting in 2023 or 2024, the deduction is limited to one‑third of the individual’s standard deduction. The bill also revises certain penalty provisions in the tax code and updates related sections. These changes affect individual taxpayers who do not itemize deductions and the administration of tax penalties.

Key Provisions

Amends section 170(p) to allow a charitable contribution deduction for non‑itemizers equal to up to 1/3 of the standard deduction for tax years beginning in 2023 and 2024.
Removes paragraph (9) of section 6662(b) and renumbers paragraph (10) as (9), effectively eliminating that penalty provision.
Strikes subsection (l) of section 6662, increasing the overall penalty for certain underpayments.
Makes conforming amendments in sections 6662(h)(2)(D), 6664(c)(2), and 6751(b)(2)(A) to reflect the renumbered penalty paragraph.
Sets the effective date of these changes to taxable years beginning after December 31, 2022.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

February 28, 2023

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SenateIntro Referral

Introduced in Senate

February 28, 2023

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

February 28, 2023

Bill Text

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Introduced in SenateIssued February 28, 2023

118th CONGRESS

1st Session

S. 566

IN THE SENATE OF THE UNITED STATES

February 28, 2023

Mr. Lankford (for himself, Mr. Coons, Mr. Rubio, Ms. Cortez Masto, Ms. Hassan, Mr. Warnock, Ms. Collins, Ms. Klobuchar, Mr. Scott of South Carolina, Mr. Peters, and Mrs. Shaheen) 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 modify and extend the deduction for charitable contributions for individuals not itemizing deductions.

Short title

This Act may be cited as the Charitable Act.

Modification and extension of deduction for charitable contributions for individuals not itemizing deductions

(a)

In general

Subsection (p) of section 170 of the Internal Revenue Code of 1986 is amended to read as follows:

(p)

Special rule for taxpayers who do not elect To itemize deductions

In the case of a taxable year beginning in 2023 or 2024, the deduction under this subsection for the taxable year shall be equal to so much of the deduction determined under this section (without regard to this subsection) for such taxable year as does not exceed an amount equal to 1/3 of the amount of the standard deduction with respect to such individual for such taxable year. This subsection shall apply only in the case of an individual who does not elect to itemize deductions for the taxable year.

(b)

Elimination of penalty

(1)

In general

Section 6662(b) of the Internal Revenue Code of 1986 is amended by striking paragraph (9) and by redesignating paragraph (10) as paragraph (9).

(2)

Increased penalty

Section 6662 of such Code is amended by striking subsection (l).

(3)

Conforming amendments

(A)

Sections 6662(h)(2)(D) of such Code is amended by striking subsection (b)(10) and inserting subsection (b)(9).

(B)

Section 6664(c)(2) of such Code is amended by striking section 6662(b)(10) and inserting section 6662(b)(9).

(C)

Section 6751(b)(2)(A) of such Code is amended by striking by reason of paragraph (9) or (10) of subsection (b) thereof and inserting by reason of subsection (b)(9) thereof.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2022.