
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 106-554 Section 1(a)(7)]
[Document affected by Public Law 107-16 Section 542(e)(2)(B)]
[Document affected by Public Law 106-554 Section 1(a)(7)[165(f)]]
[CITE: 26USC170]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
               Subchapter B--Computation of Taxable Income
 
      PART VI--ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS
 
Sec. 170. Charitable, etc., contributions and gifts


(a) Allowance of deduction

                          (1) General rule

        There shall be allowed as a deduction any charitable 
    contribution (as defined in subsection (c)) payment of which is made 
    within the taxable year. A charitable contribution shall be 
    allowable as a deduction only if verified under regulations 
    prescribed by the Secretary.

                  (2) Corporations on accrual basis

        In the case of a corporation reporting its taxable income on the 
    accrual basis, if--
            (A) the board of directors authorizes a charitable 
        contribution during any taxable year, and
            (B) payment of such contribution is made after the close of 
        such taxable year and on or before the 15th day of the third 
        month following the close of such taxable year,

    then the taxpayer may elect to treat such contribution as paid 
    during such taxable year. The election may be made only at the time 
    of the filing of the return for such taxable year, and shall be 
    signified in such manner as the Secretary shall by regulations 
    prescribe.

         (3) Future interests in tangible personal property

        For purposes of this section, payment of a charitable 
    contribution which consists of a future interest in tangible 
    personal property shall be treated as made only when all intervening 
    interests in, and rights to the actual possession or enjoyment of, 
    the property have expired or are held by persons other than the 
    taxpayer or those standing in a relationship to the taxpayer 
    described in section 267(b) or 707(b). For purposes of the preceding 
    sentence, a fixture which is intended to be severed from the real 
    property shall be treated as tangible personal property.

(b) Percentage limitations

                           (1) Individuals

        In the case of an individual, the deduction provided in 
    subsection (a) shall be limited as provided in the succeeding 
    subparagraphs.

        (A) General rule

            Any charitable contribution to--
                (i) a church or a convention or association of churches,
                (ii) an educational organization which normally 
            maintains a regular faculty and curriculum and normally has 
            a regularly enrolled body of pupils or students in 
            attendance at the place where its educational activities are 
            regularly carried on,
                (iii) an organization the principal purpose or functions 
            of which are the providing of medical or hospital care or 
            medical education or medical research, if the organization 
            is a hospital, or if the organization is a medical research 
            organization directly engaged in the continuous active 
            conduct of medical research in conjunction with a hospital, 
            and during the calendar year in which the contribution is 
            made such organization is committed to spend such 
            contributions for such research before January 1 of the 
            fifth calendar year which begins after the date such 
            contribution is made,
                (iv) an organization which normally receives a 
            substantial part of its support (exclusive of income 
            received in the exercise or performance by such organization 
            of its charitable, educational, or other purpose or function 
            constituting the basis for its exemption under section 
            501(a)) from the United States or any State or political 
            subdivision thereof or from direct or indirect contributions 
            from the general public, and which is organized and operated 
            exclusively to receive, hold, invest, and administer 
            property and to make expenditures to or for the benefit of a 
            college or university which is an organization referred to 
            in clause (ii) of this subparagraph and which is an agency 
            or instrumentality of a State or political subdivision 
            thereof, or which is owned or operated by a State or 
            political subdivision thereof or by an agency or 
            instrumentality of one or more States or political 
            subdivisions,
                (v) a governmental unit referred to in subsection 
            (c)(1),
                (vi) an organization referred to in subsection (c)(2) 
            which normally receives a substantial part of its support 
            (exclusive of income received in the exercise or performance 
            by such organization of its charitable, educational, or 
            other purpose or function constituting the basis for its 
            exemption under section 501(a)) from a governmental unit 
            referred to in subsection (c)(1) or from direct or indirect 
            contributions from the general public,
                (vii) a private foundation described in subparagraph 
            (E), or
                (viii) an organization described in section 509(a)(2) or 
            (3),

        shall be allowed to the extent that the aggregate of such 
        contributions does not exceed 50 percent of the taxpayer's 
        contribution base for the taxable year.

        (B) Other contributions

            Any charitable contribution other than a charitable 
        contribution to which subparagraph (A) applies shall be allowed 
        to the extent that the aggregate of such contributions does not 
        exceed the lesser of--
                (i) 30 percent of the taxpayer's contribution base for 
            the taxable year, or
                (ii) the excess of 50 percent of the taxpayer's 
            contribution base for the taxable year over the amount of 
            charitable contributions allowable under subparagraph (A) 
            (determined without regard to subparagraph (C)).

        If the aggregate of such contributions exceeds the limitation of 
        the preceding sentence, such excess shall be treated (in a 
        manner consistent with the rules of subsection (d)(1)) as a 
        charitable contribution (to which subparagraph (A) does not 
        apply) in each of the 5 succeeding taxable years in order of 
        time.

        (C) Special limitation with respect to contributions described 
                in subparagraph (A) of certain capital gain property

                (i) In the case of charitable contributions described in 
            subparagraph (A) of capital gain property to which 
            subsection (e)(1)(B) does not apply, the total amount of 
            contributions of such property which may be taken into 
            account under subsection (a) for any taxable year shall not 
            exceed 30 percent of the taxpayer's contribution base for 
            such year. For purposes of this subsection, contributions of 
            capital gain property to which this subparagraph applies 
            shall be taken into account after all other charitable 
            contributions (other than charitable contributions to which 
            subparagraph (D) applies).
                (ii) If charitable contributions described in 
            subparagraph (A) of capital gain property to which clause 
            (i) applies exceeds 30 percent of the taxpayer's 
            contribution base for any taxable year, such excess shall be 
            treated, in a manner consistent with the rules of subsection 
            (d)(1), as a charitable contribution of capital gain 
            property to which clause (i) applies in each of the 5 
            succeeding taxable years in order of time.
                (iii) At the election of the taxpayer (made at such time 
            and in such manner as the Secretary prescribes by 
            regulations), subsection (e)(1) shall apply to all 
            contributions of capital gain property (to which subsection 
            (e)(1)(B) does not otherwise apply) made by the taxpayer 
            during the taxable year. If such an election is made, 
            clauses (i) and (ii) shall not apply to contributions of 
            capital gain property made during the taxable year, and, in 
            applying subsection (d)(1) for such taxable year with 
            respect to contributions of capital gain property made in 
            any prior contribution year for which an election was not 
            made under this clause, such contributions shall be reduced 
            as if subsection (e)(1) had applied to such contributions in 
            the year in which made.
                (iv) For purposes of this paragraph, the term ``capital 
            gain property'' means, with respect to any contribution, any 
            capital asset the sale of which at its fair market value at 
            the time of the contribution would have resulted in gain 
            which would have been long-term capital gain. For purposes 
            of the preceding sentence, any property which is property 
            used in the trade or business (as defined in section 
            1231(b)) shall be treated as a capital asset.

        (D) Special limitation with respect to contributions of capital 
                gain property to organizations not described in 
                subparagraph (A)

            (i) In general

                In the case of charitable contributions (other than 
            charitable contributions to which subparagraph (A) applies) 
            of capital gain property, the total amount of such 
            contributions of such property taken into account under 
            subsection (a) for any taxable year shall not exceed the 
            lesser of--
                    (I) 20 percent of the taxpayer's contribution base 
                for the taxable year, or
                    (II) the excess of 30 percent of the taxpayer's 
                contribution base for the taxable year over the amount 
                of the contributions of capital gain property to which 
                subparagraph (C) applies.

          For purposes of this subsection, contributions of capital gain 
            property to which this subparagraph applies shall be taken 
            into account after all other charitable contributions.
            (ii) Carryover

                If the aggregate amount of contributions described in 
            clause (i) exceeds the limitation of clause (i), such excess 
            shall be treated (in a manner consistent with the rules of 
            subsection (d)(1)) as a charitable contribution of capital 
            gain property to which clause (i) applies in each of the 5 
            succeeding taxable years in order of time.

        (E) Certain private foundations

            The private foundations referred to in subparagraph (A)(vii) 
        and subsection (e)(1)(B) are--
                (i) a private operating foundation (as defined in 
            section 4942(j)(3)),
                (ii) any other private foundation (as defined in section 
            509(a)) which, not later than the 15th day of the third 
            month after the close of the foundation's taxable year in 
            which contributions are received, makes qualifying 
            distributions (as defined in section 4942(g), without regard 
            to paragraph (3) thereof), which are treated, after the 
            application of section 4942(g)(3), as distributions out of 
            corpus (in accordance with section 4942(h)) in an amount 
            equal to 100 percent of such contributions, and with respect 
            to which the taxpayer obtains adequate records or other 
            sufficient evidence from the foundation showing that the 
            foundation made such qualifying distributions, and
                (iii) a private foundation all of the contributions to 
            which are pooled in a common fund and which would be 
            described in section 509(a)(3) but for the right of any 
            substantial contributor (hereafter in this clause called 
            ``donor'') or his spouse to designate annually the 
            recipients, from among organizations described in paragraph 
            (1) of section 509(a), of the income attributable to the 
            donor's contribution to the fund and to direct (by deed or 
            by will) the payment, to an organization described in such 
            paragraph (1), of the corpus in the common fund attributable 
            to the donor's contribution; but this clause shall apply 
            only if all of the income of the common fund is required to 
            be (and is) distributed to one or more organizations 
            described in such paragraph (1) not later than the 15th day 
            of the third month after the close of the taxable year in 
            which the income is realized by the fund and only if all of 
            the corpus attributable to any donor's contribution to the 
            fund is required to be (and is) distributed to one or more 
            of such organizations not later than one year after his 
            death or after the death of his surviving spouse if she has 
            the right to designate the recipients of such corpus.

        (F) Contribution base defined

            For purposes of this section, the term ``contribution base'' 
        means adjusted gross income (computed without regard to any net 
        operating loss carryback to the taxable year under section 172).

                          (2) Corporations

        In the case of a corporation, the total deductions under 
    subsection (a) for any taxable year shall not exceed 10 percent of 
    the taxpayer's taxable income computed without regard to--
            (A) this section,
            (B) part VIII (except section 248),
            (C) any net operating loss carryback to the taxable year 
        under section 172, and
            (D) any capital loss carryback to the taxable year under 
        section 1212(a)(1).

(c) Charitable contribution defined

    For purposes of this section, the term ``charitable contribution'' 
means a contribution or gift to or for the use of--
        (1) A State, a possession of the United States, or any political 
    subdivision of any of the foregoing, or the United States or the 
    District of Columbia, but only if the contribution or gift is made 
    for exclusively public purposes.
        (2) A corporation, trust, or community chest, fund, or 
    foundation--
            (A) created or organized in the United States or in any 
        possession thereof, or under the law of the United States, any 
        State, the District of Columbia, or any possession of the United 
        States;
            (B) organized and operated exclusively for religious, 
        charitable, scientific, literary, or educational purposes, or to 
        foster national or international amateur sports competition (but 
        only if no part of its activities involve the provision of 
        athletic facilities or equipment), or for the prevention of 
        cruelty to children or animals;
            (C) no part of the net earnings of which inures to the 
        benefit of any private shareholder or individual; and
            (D) which is not disqualified for tax exemption under 
        section 501(c)(3) by reason of attempting to influence 
        legislation, and which does not participate in, or intervene in 
        (including the publishing or distributing of statements), any 
        political campaign on behalf of (or in opposition to) any 
        candidate for public office.

    A contribution or gift by a corporation to a trust, chest, fund, or 
    foundation shall be deductible by reason of this paragraph only if 
    it is to be used within the United States or any of its possessions 
    exclusively for purposes specified in subparagraph (B). Rules 
    similar to the rules of section 501(j) shall apply for purposes of 
    this paragraph.
        (3) A post or organization of war veterans, or an auxiliary unit 
    or society of, or trust or foundation for, any such post or 
    organization--
            (A) organized in the United States or any of its 
        possessions, and
            (B) no part of the net earnings of which inures to the 
        benefit of any private shareholder or individual.

        (4) In the case of a contribution or gift by an individual, a 
    domestic fraternal society, order, or association, operating under 
    the lodge system, but only if such contribution or gift is to be 
    used exclusively for religious, charitable, scientific, literary, or 
    educational purposes, or for the prevention of cruelty to children 
    or animals.
        (5) A cemetery company owned and operated exclusively for the 
    benefit of its members, or any corporation chartered solely for 
    burial purposes as a cemetery corporation and not permitted by its 
    charter to engage in any business not necessarily incident to that 
    purpose, if such company or corporation is not operated for profit 
    and no part of the net earnings of such company or corporation 
    inures to the benefit of any private shareholder or individual.

For purposes of this section, the term ``charitable contribution'' also 
means an amount treated under subsection (g) as paid for the use of an 
organization described in paragraph (2), (3), or (4).

(d) Carryovers of excess contributions

                           (1) Individuals

        (A) In general

            In the case of an individual, if the amount of charitable 
        contributions described in subsection (b)(1)(A) payment of which 
        is made within a taxable year (hereinafter in this paragraph 
        referred to as the ``contribution year'') exceeds 50 percent of 
        the taxpayer's contribution base for such year, such excess 
        shall be treated as a charitable contribution described in 
        subsection (b)(1)(A) paid in each of the 5 succeeding taxable 
        years in order of time, but, with respect to any such succeeding 
        taxable year, only to the extent of the lesser of the two 
        following amounts:
                (i) the amount by which 50 percent of the taxpayer's 
            contribution base for such succeeding taxable year exceeds 
            the sum of the charitable contributions described in 
            subsection (b)(1)(A) payment of which is made by the 
            taxpayer within such succeeding taxable year (determined 
            without regard to this subparagraph) and the charitable 
            contributions described in subsection (b)(1)(A) payment of 
            which was made in taxable years before the contribution year 
            which are treated under this subparagraph as having been 
            paid in such succeeding taxable year; or
                (ii) in the case of the first succeeding taxable year, 
            the amount of such excess, and in the case of the second, 
            third, fourth, or fifth succeeding taxable year, the portion 
            of such excess not treated under this subparagraph as a 
            charitable contribution described in subsection (b)(1)(A) 
            paid in any taxable year intervening between the 
            contribution year and such succeeding taxable year.

        (B) Special rule for net operating loss carryovers

            In applying subparagraph (A), the excess determined under 
        subparagraph (A) for the contribution year shall be reduced to 
        the extent that such excess reduces taxable income (as computed 
        for purposes of the second sentence of section 172(b)(2)) and 
        increases the net operating loss deduction for a taxable year 
        succeeding the contribution year.

                          (2) Corporations

        (A) In general

            Any contribution made by a corporation in a taxable year 
        (hereinafter in this paragraph referred to as the ``contribution 
        year'') in excess of the amount deductible for such year under 
        subsection (b)(2) shall be deductible for each of the 5 
        succeeding taxable years in order of time, but only to the 
        extent of the lesser of the two following amounts: (i) the 
        excess of the maximum amount deductible for such succeeding 
        taxable year under subsection (b)(2) over the sum of the 
        contributions made in such year plus the aggregate of the excess 
        contributions which were made in taxable years before the 
        contribution year and which are deductible under this 
        subparagraph for such succeeding taxable year; or (ii) in the 
        case of the first succeeding taxable year, the amount of such 
        excess contribution, and in the case of the second, third, 
        fourth, or fifth succeeding taxable year, the portion of such 
        excess contribution not deductible under this subparagraph for 
        any taxable year intervening between the contribution year and 
        such succeeding taxable year.

        (B) Special rule for net operating loss carryovers

            For purposes of subparagraph (A), the excess of--
                (i) the contributions made by a corporation in a taxable 
            year to which this section applies, over
                (ii) the amount deductible in such year under the 
            limitation in subsection (b)(2),

        shall be reduced to the extent that such excess reduces taxable 
        income (as computed for purposes of the second sentence of 
        section 172(b)(2)) and increases a net operating loss carryover 
        under section 172 to a succeeding taxable year.

(e) Certain contributions of ordinary income and capital gain property

                          (1) General rule

        The amount of any charitable contribution of property otherwise 
    taken into account under this section shall be reduced by the sum 
    of--
            (A) the amount of gain which would not have been long-term 
        capital gain if the property contributed had been sold by the 
        taxpayer at its fair market value (determined at the time of 
        such contribution), and
            (B) in the case of a charitable contribution--
                (i) of tangible personal property, if the use by the 
            donee is unrelated to the purpose or function constituting 
            the basis for its exemption under section 501 (or, in the 
            case of a governmental unit, to any purpose or function 
            described in subsection (c)), or
                (ii) to or for the use of a private foundation (as 
            defined in section 509(a)), other than a private foundation 
            described in subsection (b)(1)(E),

        the amount of gain which would have been long-term capital gain 
        if the property contributed had been sold by the taxpayer at its 
        fair market value (determined at the time of such contribution).

    For purposes of applying this paragraph (other than in the case of 
    gain to which section 617(d)(1), 1245(a), 1250(a), 1252(a), or 
    1254(a) applies), property which is property used in the trade or 
    business (as defined in section 1231(b)) shall be treated as a 
    capital asset. For purposes of applying this paragraph in the case 
    of a charitable contribution of stock in an S corporation, rules 
    similar to the rules of section 751 shall apply in determining 
    whether gain on such stock would have been long-term capital gain if 
    such stock were sold by the taxpayer.

                       (2) Allocation of basis

        For purposes of paragraph (1), in the case of a charitable 
    contribution of less than the taxpayer's entire interest in the 
    property contributed, the taxpayer's adjusted basis in such property 
    shall be allocated between the interest contributed and any interest 
    not contributed in accordance with regulations prescribed by the 
    Secretary.

    (3) Special rule for certain contributions of inventory and 
                               other property

        (A) Qualified contributions

            For purposes of this paragraph, a qualified contribution 
        shall mean a charitable contribution of property described in 
        paragraph (1) or (2) of section 1221(a), by a corporation (other 
        than a corporation which is an S corporation) to an organization 
        which is described in section 501(c)(3) and is exempt 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)), but only if--
                (i) the use of the property by the donee is related to 
            the purpose or function constituting the basis for its 
            exemption under section 501 and the property is to be used 
            by the donee solely for the care of the ill, the needy, or 
            infants;
                (ii) the property is not transferred by the donee in 
            exchange for money, other property, or services;
                (iii) the taxpayer receives from the donee a written 
            statement representing that its use and disposition of the 
            property will be in accordance with the provisions of 
            clauses (i) and (ii); and
                (iv) in the case where the property is subject to 
            regulation under the Federal Food, Drug, and Cosmetic Act, 
            as amended, such property must fully satisfy the applicable 
            requirements of such Act and regulations promulgated 
            thereunder on the date of transfer and for one hundred and 
            eighty days prior thereto.

        (B) Amount of reduction

            The reduction under paragraph (1)(A) for any qualified 
        contribution (as defined in subparagraph (A)) shall be no 
        greater than the sum of--
                (i) one-half of the amount computed under paragraph 
            (1)(A) (computed without regard to this paragraph), and
                (ii) the amount (if any) by which the charitable 
            contribution deduction under this section for any qualified 
            contribution (computed by taking into account the amount 
            determined in clause (i), but without regard to this clause) 
            exceeds twice the basis of such property.

            (C) This paragraph shall not apply to so much of the amount 
        of the gain described in paragraph (1)(A) which would be long-
        term capital gain but for the application of sections 617, 1245, 
        1250, or 1252.

     (4) Special rule for contributions of scientific property 
                              used for research

        (A) Limit on reduction

            In the case of a qualified research contribution, the 
        reduction under paragraph (1)(A) shall be no greater than the 
        amount determined under paragraph (3)(B).

        (B) Qualified research contributions

            For purposes of this paragraph, the term ``qualified 
        research contribution'' means a charitable contribution by a 
        corporation of tangible personal property described in paragraph 
        (1) of section 1221(a), but only if--
                (i) the contribution is to an organization described in 
            subparagraph (A) or subparagraph (B) of section 41(e)(6),
                (ii) the property is constructed by the taxpayer,
                (iii) the contribution is made not later than 2 years 
            after the date the construction of the property is 
            substantially completed,
                (iv) the original use of the property is by the donee,
                (v) the property is scientific equipment or apparatus 
            substantially all of the use of which by the donee is for 
            research or experimentation (within the meaning of section 
            174), or for research training, in the United States in 
            physical or biological sciences,
                (vi) the property is not transferred by the donee in 
            exchange for money, other property, or services, and
                (vii) the taxpayer receives from the donee a written 
            statement representing that its use and disposition of the 
            property will be in accordance with the provisions of 
            clauses (v) and (vi).

        (C) Construction of property by taxpayer

            For purposes of this paragraph, property shall be treated as 
        constructed by the taxpayer only if the cost of the parts used 
        in the construction of such property (other than parts 
        manufactured by the taxpayer or a related person) do not exceed 
        50 percent of the taxpayer's basis in such property.

        (D) Corporation

            For purposes of this paragraph, the term ``corporation'' 
        shall not include--
                (i) an S corporation,
                (ii) a personal holding company (as defined in section 
            542), and
                (iii) a service organization (as defined in section 
            414(m)(3)).

    (5) Special rule for contributions of stock for which market 
                      quotations are readily available

        (A) In general

            Subparagraph (B)(ii) of paragraph (1) shall not apply to any 
        contribution of qualified appreciated stock.

        (B) Qualified appreciated stock

            Except as provided in subparagraph (C), for purposes of this 
        paragraph, the term ``qualified appreciated stock'' means any 
        stock of a corporation--
                (i) for which (as of the date of the contribution) 
            market quotations are readily available on an established 
            securities market, and
                (ii) which is capital gain property (as defined in 
            subsection (b)(1)(C)(iv)).

        (C) Donor may not contribute more than 10 percent of stock of 
                corporation

            (i) In general

                In the case of any donor, the term ``qualified 
            appreciated stock'' shall not include any stock of a 
            corporation contributed by the donor in a contribution to 
            which paragraph (1)(B)(ii) applies (determined without 
            regard to this paragraph) to the extent that the amount of 
            the stock so contributed (when increased by the aggregate 
            amount of all prior such contributions by the donor of stock 
            in such corporation) exceeds 10 percent (in value) of all of 
            the outstanding stock of such corporation.
            (ii) Special rule

                For purposes of clause (i), an individual shall be 
            treated as making all contributions made by any member of 
            his family (as defined in section 267(c)(4)).

     (6) Special rule for contributions of computer technology 
                   and equipment for educational purposes

        (A) Limit on reduction

            In the case of a qualified computer contribution, the 
        reduction under paragraph (1)(A) shall be no greater than the 
        amount determined under paragraph (3)(B).

        (B) Qualified computer contribution

            For purposes of this paragraph, the term ``qualified 
        computer contribution'' means a charitable contribution by a 
        corporation of any computer technology or equipment, but only 
        if--
                (i) the contribution is to--
                    (I) an educational organization described in 
                subsection (b)(1)(A)(ii),
                    (II) an entity described in section 501(c)(3) and 
                exempt from tax under section 501(a) (other than an 
                entity described in subclause (I)) that is organized 
                primarily for purposes of supporting elementary and 
                secondary education, or
                    (III) a public library (within the meaning of 
                section 213(2)(A) of the Library Services and Technology 
                Act (20 U.S.C. 9122(2)(A)), as in effect on the date of 
                the enactment of the Community Renewal Tax Relief Act of 
                2000,\1\ established and maintained by an entity 
                described in subsection (c)(1),
---------------------------------------------------------------------------
    \1\ So in original. The word ``2000'' probably should be followed by 
a closing parenthesis.

                (ii) the contribution is made not later than 3 years 
            after the date the taxpayer acquired the property (or in the 
            case of property constructed by the taxpayer, the date the 
            construction of the property is substantially completed),
                (iii) the original use of the property is by the donor 
            or the donee,
                (iv) substantially all of the use of the property by the 
            donee is for use within the United States for educational 
            purposes that are related to the purpose or function of the 
            donee,
                (v) the property is not transferred by the donee in 
            exchange for money, other property, or services, except for 
            shipping, installation and transfer costs,
                (vi) the property will fit productively into the donee's 
            education plan,
                (vii) the donee's use and disposition of the property 
            will be in accordance with the provisions of clauses (iv) 
            and (v), and
                (viii) the property meets such standards, if any, as the 
            Secretary may prescribe by regulation to assure that the 
            property meets minimum functionality and suitability 
            standards for educational purposes.

        (C) Contribution to private foundation

            A contribution by a corporation of any computer technology 
        or equipment to a private foundation (as defined in section 509) 
        shall be treated as a qualified computer contribution for 
        purposes of this paragraph if--
                (i) the contribution to the private foundation satisfies 
            the requirements of clauses (ii) and (v) of subparagraph 
            (B), and
                (ii) within 30 days after such contribution, the private 
            foundation--
                    (I) contributes the property to a donee described in 
                clause (i) of subparagraph (B) that satisfies the 
                requirements of clauses (iv) through (vii) of 
                subparagraph (B), and
                    (II) notifies the donor of such contribution.

        (D) Donations of property reacquired by manufacturer

            In the case of property which is reacquired by the person 
        who constructed the property--
                (i) subparagraph (B)(ii) shall be applied to a 
            contribution of such property by such person by taking into 
            account the date that the original construction of the 
            property was substantially completed, and
                (ii) subparagraph (B)(iii) shall not apply to such 
            contribution.

        (E) Special rule relating to construction of property

            For the purposes of this paragraph, the rules of paragraph 
        (4)(C) shall apply.

        (F) Definitions

            For the purposes of this paragraph--
            (i) Computer technology or equipment

                The term ``computer technology or equipment'' means 
            computer software (as defined by section 197(e)(3)(B)), 
            computer or peripheral equipment (as defined by section 
            168(i)(2)(B)), and fiber optic cable related to computer 
            use.
            (ii) Corporation

                The term ``corporation'' has the meaning given to such 
            term by paragraph (4)(D).

        (G) Termination

            This paragraph shall not apply to any contribution made 
        during any taxable year beginning after December 31, 2003.

(f) Disallowance of deduction in certain cases and special rules

                           (1) In general

        No deduction shall be allowed under this section for a 
    contribution to or for the use of an organization or trust described 
    in section 508(d) or 4948(c)(4) subject to the conditions specified 
    in such sections.

            (2) Contributions of property placed in trust

        (A) Remainder interest

            In the case of property transferred in trust, no deduction 
        shall be allowed under this section for the value of a 
        contribution of a remainder interest unless the trust is a 
        charitable remainder annuity trust or a charitable remainder 
        unitrust (described in section 664), or a pooled income fund 
        (described in section 642(c)(5)).

        (B) Income interests, etc.

            No deduction shall be allowed under this section for the 
        value of any interest in property (other than a remainder 
        interest) transferred in trust unless the interest is in the 
        form of a guaranteed annuity or the trust instrument specifies 
        that the interest is a fixed percentage distributed yearly of 
        the fair market value of the trust property (to be determined 
        yearly) and the grantor is treated as the owner of such interest 
        for purposes of applying section 671. If the donor ceases to be 
        treated as the owner of such an interest for purposes of 
        applying section 671, at the time the donor ceases to be so 
        treated, the donor shall for purposes of this chapter be 
        considered as having received an amount of income equal to the 
        amount of any deduction he received under this section for the 
        contribution reduced by the discounted value of all amounts of 
        income earned by the trust and taxable to him before the time at 
        which he ceases to be treated as the owner of the interest. Such 
        amounts of income shall be discounted to the date of the 
        contribution. The Secretary shall prescribe such regulations as 
        may be necessary to carry out the purposes of this subparagraph.

        (C) Denial of deduction in case of payments by certain trusts

            In any case in which a deduction is allowed under this 
        section for the value of an interest in property described in 
        subparagraph (B), transferred in trust, no deduction shall be 
        allowed under this section to the grantor or any other person 
        for the amount of any contribution made by the trust with 
        respect to such interest.

        (D) Exception

            This paragraph shall not apply in a case in which the value 
        of all interests in property transferred in trust are deductible 
        under subsection (a).

    (3) Denial of deduction in case of certain contributions of 
                        partial interests in property

        (A) In general

            In the case of a contribution (not made by a transfer in 
        trust) of an interest in property which consists of less than 
        the taxpayer's entire interest in such property, a deduction 
        shall be allowed under this section only to the extent that the 
        value of the interest contributed would be allowable as a 
        deduction under this section if such interest had been 
        transferred in trust. For purposes of this subparagraph, a 
        contribution by a taxpayer of the right to use property shall be 
        treated as a contribution of less than the taxpayer's entire 
        interest in such property.

        (B) Exceptions

            Subparagraph (A) shall not apply to--
                (i) a contribution of a remainder interest in a personal 
            residence or farm,
                (ii) a contribution of an undivided portion of the 
            taxpayer's entire interest in property, and
                (iii) a qualified conservation contribution.

        (4) Valuation of remainder interest in real property

        For purposes of this section, in determining the value of a 
    remainder interest in real property, depreciation (computed on the 
    straight line method) and depletion of such property shall be taken 
    into account, and such value shall be discounted at a rate of 6 
    percent per annum, except that the Secretary may prescribe a 
    different rate.

                 (5) Reduction for certain interest

        If, in connection with any charitable contribution, a liability 
    is assumed by the recipient or by any other person, or if a 
    charitable contribution is of property which is subject to a 
    liability, then, to the extent necessary to avoid the duplication of 
    amounts, the amount taken into account for purposes of this section 
    as the amount of the charitable contribution--
            (A) shall be reduced for interest (i) which has been paid 
        (or is to be paid) by the taxpayer, (ii) which is attributable 
        to the liability, and (iii) which is attributable to any period 
        after the making of the contribution, and
            (B) in the case of a bond, shall be further reduced for 
        interest (i) which has been paid (or is to be paid) by the 
        taxpayer on indebtedness incurred or continued to purchase or 
        carry such bond, and (ii) which is attributable to any period 
        before the making of the contribution.

    The reduction pursuant to subparagraph (B) shall not exceed the 
    interest (including interest equivalent) on the bond which is 
    attributable to any period before the making of the contribution and 
    which is not (under the taxpayer's method of accounting) includible 
    in the gross income of the taxpayer for any taxable year. For 
    purposes of this paragraph, the term ``bond'' means any bond, 
    debenture, note, or certificate or other evidence of indebtedness.

            (6) Deductions for out-of-pocket expenditures

        No deduction shall be allowed under this section for an out-of-
    pocket expenditure made by any person on behalf of an organization 
    described in subsection (c) (other than an organization described in 
    section 501(h)(5) (relating to churches, etc.)) if the expenditure 
    is made for the purpose of influencing legislation (within the 
    meaning of section 501(c)(3)).

            (7) Reformations to comply with paragraph (2)

        (A) In general

            A deduction shall be allowed under subsection (a) in respect 
        of any qualified reformation (within the meaning of section 
        2055(e)(3)(B)).

        (B) Rules similar to section 2055(e)(3) to apply

            For purposes of this paragraph, rules similar to the rules 
        of section 2055(e)(3) shall apply.

      (8) Substantiation requirement for certain contributions

        (A) General rule

            No deduction shall be allowed under subsection (a) for any 
        contribution of $250 or more unless the taxpayer substantiates 
        the contribution by a contemporaneous written acknowledgment of 
        the contribution by the donee organization that meets the 
        requirements of subparagraph (B).

        (B) Content of acknowledgement

            An acknowledgement meets the requirements of this 
        subparagraph if it includes the following information:
                (i) The amount of cash and a description (but not value) 
            of any property other than cash contributed.
                (ii) Whether the donee organization provided any goods 
            or services in consideration, in whole or in part, for any 
            property described in clause (i).
                (iii) A description and good faith estimate of the value 
            of any goods or services referred to in clause (ii) or, if 
            such goods or services consist solely of intangible 
            religious benefits, a statement to that effect.

        For purposes of this subparagraph, the term ``intangible 
        religious benefit'' means any intangible religious benefit which 
        is provided by an organization organized exclusively for 
        religious purposes and which generally is not sold in a 
        commercial transaction outside the donative context.

        (C) Contemporaneous

            For purposes of subparagraph (A), an acknowledgment shall be 
        considered to be contemporaneous if the taxpayer obtains the 
        acknowledgment on or before the earlier of--
                (i) the date on which the taxpayer files a return for 
            the taxable year in which the contribution was made, or
                (ii) the due date (including extensions) for filing such 
            return.

        (D) Substantiation not required for contributions reported by 
                the donee organization

            Subparagraph (A) shall not apply to a contribution if the 
        donee organization files a return, on such form and in 
        accordance with such regulations as the Secretary may prescribe, 
        which includes the information described in subparagraph (B) 
        with respect to the contribution.

        (E) Regulations

            The Secretary shall prescribe such regulations as may be 
        necessary or appropriate to carry out the purposes of this 
        paragraph, including regulations that may provide that some or 
        all of the requirements of this paragraph do not apply in 
        appropriate cases.

      (9) Denial of deduction where contribution for lobbying 
                                 activities

        No deduction shall be allowed under this section for a 
    contribution to an organization which conducts activities to which 
    section 162(e)(1) applies on matters of direct financial interest to 
    the donor's trade or business, if a principal purpose of the 
    contribution was to avoid Federal income tax by securing a deduction 
    for such activities under this section which would be disallowed by 
    reason of section 162(e) if the donor had conducted such activities 
    directly. No deduction shall be allowed under section 162(a) for any 
    amount for which a deduction is disallowed under the preceding 
    sentence.

      (10) Split-dollar life insurance, annuity, and endowment 
                                  contracts

        (A) In general

            Nothing in this section or in section 545(b)(2), 556(b)(2), 
        642(c), 2055, 2106(a)(2), or 2522 shall be construed to allow a 
        deduction, and no deduction shall be allowed, for any transfer 
        to or for the use of an organization described in subsection (c) 
        if in connection with such transfer--
                (i) the organization directly or indirectly pays, or has 
            previously paid, any premium on any personal benefit 
            contract with respect to the transferor, or
                (ii) there is an understanding or expectation that any 
            person will directly or indirectly pay any premium on any 
            personal benefit contract with respect to the transferor.

        (B) Personal benefit contract

            For purposes of subparagraph (A), the term ``personal 
        benefit contract'' means, with respect to the transferor, any 
        life insurance, annuity, or endowment contract if any direct or 
        indirect beneficiary under such contract is the transferor, any 
        member of the transferor's family, or any other person (other 
        than an organization described in subsection (c)) designated by 
        the transferor.

        (C) Application to charitable remainder trusts

            In the case of a transfer to a trust referred to in 
        subparagraph (E), references in subparagraphs (A) and (F) to an 
        organization described in subsection (c) shall be treated as a 
        reference to such trust.

        (D) Exception for certain annuity contracts

            If, in connection with a transfer to or for the use of an 
        organization described in subsection (c), such organization 
        incurs an obligation to pay a charitable gift annuity (as 
        defined in section 501(m)) and such organization purchases any 
        annuity contract to fund such obligation, persons receiving 
        payments under the charitable gift annuity shall not be treated 
        for purposes of subparagraph (B) as indirect beneficiaries under 
        such contract if--
                (i) such organization possesses all of the incidents of 
            ownership under such contract,
                (ii) such organization is entitled to all the payments 
            under such contract, and
                (iii) the timing and amount of payments under such 
            contract are substantially the same as the timing and amount 
            of payments to each such person under such obligation (as 
            such obligation is in effect at the time of such transfer).

        (E) Exception for certain contracts held by charitable remainder 
                trusts

            A person shall not be treated for purposes of subparagraph 
        (B) as an indirect beneficiary under any life insurance, 
        annuity, or endowment contract held by a charitable remainder 
        annuity trust or a charitable remainder unitrust (as defined in 
        section 664(d)) solely by reason of being entitled to any 
        payment referred to in paragraph (1)(A) or (2)(A) of section 
        664(d) if--
                (i) such trust possesses all of the incidents of 
            ownership under such contract, and
                (ii) such trust is entitled to all the payments under 
            such contract.

        (F) Excise tax on premiums paid

            (i) In general

                There is hereby imposed on any organization described in 
            subsection (c) an excise tax equal to the premiums paid by 
            such organization on any life insurance, annuity, or 
            endowment contract if the payment of premiums on such 
            contract is in connection with a transfer for which a 
            deduction is not allowable under subparagraph (A), 
            determined without regard to when such transfer is made.
            (ii) Payments by other persons

                For purposes of clause (i), payments made by any other 
            person pursuant to an understanding or expectation referred 
            to in subparagraph (A) shall be treated as made by the 
            organization.
            (iii) Reporting

                Any organization on which tax is imposed by clause (i) 
            with respect to any premium shall file an annual return 
            which includes--
                    (I) the amount of such premiums paid during the year 
                and the name and TIN of each beneficiary under the 
                contract to which the premium relates, and
                    (II) such other information as the Secretary may 
                require.

          The penalties applicable to returns required under section 
            6033 shall apply to returns required under this clause. 
            Returns required under this clause shall be furnished at 
            such time and in such manner as the Secretary shall by forms 
            or regulations require.
            (iv) Certain rules to apply

                The tax imposed by this subparagraph shall be treated as 
            imposed by chapter 42 for purposes of this title other than 
            subchapter B of chapter 42.

        (G) Special rule where State requires specification of 
                charitable gift annuitant in contract

            In the case of an obligation to pay a charitable gift 
        annuity referred to in subparagraph (D) which is entered into 
        under the laws of a State which requires, in order for the 
        charitable gift annuity to be exempt from insurance regulation 
        by such State, that each beneficiary under the charitable gift 
        annuity be named as a beneficiary under an annuity contract 
        issued by an insurance company authorized to transact business 
        in such State, the requirements of clauses (i) and (ii) of 
        subparagraph (D) shall be treated as met if--
                (i) such State law requirement was in effect on February 
            8, 1999,
                (ii) each such beneficiary under the charitable gift 
            annuity is a bona fide resident of such State at the time 
            the obligation to pay a charitable gift annuity is entered 
            into, and
                (iii) the only persons entitled to payments under such 
            contract are persons entitled to payments as beneficiaries 
            under such obligation on the date such obligation is entered 
            into.

        (H) Member of family

            For purposes of this paragraph, an individual's family 
        consists of the individual's grandparents, the grandparents of 
        such individual's spouse, the lineal descendants of such 
        grandparents, and any spouse of such a lineal descendant.

        (I) Regulations

            The Secretary shall prescribe such regulations as may be 
        necessary or appropriate to carry out the purposes of this 
        paragraph, including regulations to prevent the avoidance of 
        such purposes.

(g) Amounts paid to maintain certain students as members of taxpayer's 
        household

                           (1) In general

        Subject to the limitations provided by paragraph (2), amounts 
    paid by the taxpayer to maintain an individual (other than a 
    dependent, as defined in section 152, or a relative of the taxpayer) 
    as a member of his household during the period that such individual 
    is--
            (A) a member of the taxpayer's household under a written 
        agreement between the taxpayer and an organization described in 
        paragraph (2), (3), or (4) of subsection (c) to implement a 
        program of the organization to provide educational opportunities 
        for pupils or students in private homes, and
            (B) a full-time pupil or student in the twelfth or any lower 
        grade at an educational organization described in section 
        170(b)(1)(A)(ii) located in the United States,

    shall be treated as amounts paid for the use of the organization.

                           (2) Limitations

        (A) Amount

            Paragraph (1) shall apply to amounts paid within the taxable 
        year only to the extent that such amounts do not exceed $50 
        multiplied by the number of full calendar months during the 
        taxable year which fall within the period described in paragraph 
        (1). For purposes of the preceding sentence, if 15 or more days 
        of a calendar month fall within such period such month shall be 
        considered as a full calendar month.

        (B) Compensation or reimbursement

            Paragraph (1) shall not apply to any amount paid by the 
        taxpayer within the taxable year if the taxpayer receives any 
        money or other property as compensation or reimbursement for 
        maintaining the individual in his household during the period 
        described in paragraph (1).

                        (3) Relative defined

        For purposes of paragraph (1), the term ``relative of the 
    taxpayer'' means an individual who, with respect to the taxpayer, 
    bears any of the relationships described in paragraphs (1) through 
    (8) of section 152(a).

              (4) No other amount allowed as deduction

        No deduction shall be allowed under subsection (a) for any 
    amount paid by a taxpayer to maintain an individual as a member of 
    his household under a program described in paragraph (1)(A) except 
    as provided in this subsection.

(h) Qualified conservation contribution

                           (1) In general

        For purposes of subsection (f)(3)(B)(iii), the term ``qualified 
    conservation contribution'' means a contribution--
            (A) of a qualified real property interest,
            (B) to a qualified organization,
            (C) exclusively for conservation purposes.

                (2) Qualified real property interest

        For purposes of this subsection, the term ``qualified real 
    property interest'' means any of the following interests in real 
    property:
            (A) the entire interest of the donor other than a qualified 
        mineral interest,
            (B) a remainder interest, and
            (C) a restriction (granted in perpetuity) on the use which 
        may be made of the real property.

                     (3) Qualified organization

        For purposes of paragraph (1), the term ``qualified 
    organization'' means an organization which--
            (A) is described in clause (v) or (vi) of subsection 
        (b)(1)(A), or
            (B) is described in section 501(c)(3) and--
                (i) meets the requirements of section 509(a)(2), or
                (ii) meets the requirements of section 509(a)(3) and is 
            controlled by an organization described in subparagraph (A) 
            or in clause (i) of this subparagraph.

                  (4) Conservation purpose defined

        (A) In general

            For purposes of this subsection, the term ``conservation 
        purpose'' means--
                (i) the preservation of land areas for outdoor 
            recreation by, or the education of, the general public,
                (ii) the protection of a relatively natural habitat of 
            fish, wildlife, or plants, or similar ecosystem,
                (iii) the preservation of open space (including farmland 
            and forest land) where such preservation is--
                    (I) for the scenic enjoyment of the general public, 
                or
                    (II) pursuant to a clearly delineated Federal, 
                State, or local governmental conservation policy,

          and will yield a significant public benefit, or
                (iv) the preservation of an historically important land 
            area or a certified historic structure.

        (B) Certified historic structure

            For purposes of subparagraph (A)(iv), the term ``certified 
        historic structure'' means any building, structure, or land area 
        which--
                (i) is listed in the National Register, or
                (ii) is located in a registered historic district (as 
            defined in section 47(c)(3)(B)) and is certified by the 
            Secretary of the Interior to the Secretary as being of 
            historic significance to the district.

    A building, structure, or land area satisfies the preceding sentence 
    if it satisfies such sentence either at the time of the transfer or 
    on the due date (including extensions) for filing the transferor's 
    return under this chapter for the taxable year in which the transfer 
    is made.

              (5) Exclusively for conservation purposes

        For purposes of this subsection--

        (A) Conservation purpose must be protected

            A contribution shall not be treated as exclusively for 
        conservation purposes unless the conservation purpose is 
        protected in perpetuity.

        (B) No surface mining permitted

            (i) In general

                Except as provided in clause (ii), in the case of a 
            contribution of any interest where there is a retention of a 
            qualified mineral interest, subparagraph (A) shall not be 
            treated as met if at any time there may be extraction or 
            removal of minerals by any surface mining method.
            (ii) Special rule

                With respect to any contribution of property in which 
            the ownership of the surface estate and mineral interests 
            has been and remains separated, subparagraph (A) shall be 
            treated as met if the probability of surface mining 
            occurring on such property is so remote as to be negligible.

                   (6) Qualified mineral interest

        For purposes of this subsection, the term ``qualified mineral 
    interest'' means--
            (A) subsurface oil, gas, or other minerals, and
            (B) the right to access to such minerals.

(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 14 cents 
per mile.

(j) Denial of deduction for certain travel expenses

    No deduction shall be allowed under this section for traveling 
expenses (including amounts expended for meals and lodging) while away 
from home, whether paid directly or by reimbursement, unless there is no 
significant element of personal pleasure, recreation, or vacation in 
such travel.

(k) Disallowance of deductions in certain cases

            For disallowance of deductions for contributions to or for 
        the use of communist controlled organizations, see section 11(a) 
        \2\ of the Internal Security Act of 1950 (50 U.S.C. 790).
---------------------------------------------------------------------------
    \2\ See References in Text note below.
---------------------------------------------------------------------------

(l) Treatment of certain amounts paid to or for the benefit of 
        institutions of higher education

                           (1) In general

        For purposes of this section, 80 percent of any amount described 
    in paragraph (2) shall be treated as a charitable contribution.

                        (2) Amount described

        For purposes of paragraph (1), an amount is described in this 
    paragraph if--
            (A) the amount is paid by the taxpayer to or for the benefit 
        of an educational organization--
                (i) which is described in subsection (b)(1)(A)(ii), and
                (ii) which is an institution of higher education (as 
            defined in section 3304(f)), and

            (B) such amount would be allowable as a deduction under this 
        section but for the fact that the taxpayer receives (directly or 
        indirectly) as a result of paying such amount the right to 
        purchase tickets for seating at an athletic event in an athletic 
        stadium of such institution.

    If any portion of a payment is for the purchase of such tickets, 
    such portion and the remaining portion (if any) of such payment 
    shall be treated as separate amounts for purposes of this 
    subsection.

(m) Other cross references

            (1) For treatment of certain organizations providing child 
        care, see section 501(k).
            (2) For charitable contributions of estates and trusts, see 
        section 642(c).
            (3) For nondeductibility of contributions by common trust 
        funds, see section 584.
            (4) For charitable contributions of partners, see section 
        702.
            (5) For charitable contributions of nonresident aliens, see 
        section 873.
            (6) For treatment of gifts for benefit of or use in 
        connection with the Naval Academy as gifts to or for use of the 
        United States, see section 6973 of title 10, United States Code.
            (7) For treatment of gifts accepted by the Secretary of 
        State, the Director of the International Communication Agency, 
        or the Director of the United States International Development 
        Cooperation Agency, as gifts to or for the use of the United 
        States, see section 25 of the State Department Basic Authorities 
        Act of 1956.
            (8) For treatment of gifts of money accepted by the Attorney 
        General for credit to the ``Commissary Funds Federal Prisons'' 
        as gifts to or for the use of the United States, see section 
        4043 of title 18, United States Code.
            (9) For charitable contributions to or for the use of Indian 
        tribal governments (or their subdivisions), see section 7871.

(Aug. 16, 1954, ch. 736, 68A Stat. 58; Aug. 7, 1956, ch. 1031, Sec. 1, 
70 Stat. 1117; Pub. L. 85-866, title I, Secs. 10(a), 11, 12(a), Sept. 2, 
1958, 72 Stat. 1609, 1610; Pub. L. 86-779, Sec. 7(a), Sept. 14, 1960, 74 
Stat. 1002; Pub. L. 87-834, Sec. 13(d), Oct. 16, 1962, 76 Stat. 1034; 
Pub. L. 87-858, Sec. 2(a), (b), Oct. 23, 1962, 76 Stat. 1134; Pub. L. 
88-272, title II, Secs. 209(a), (b), (c)(1), (d)(1), (e), 231(b)(1), 
Feb. 26, 1964, 78 Stat. 43, 45-47, 105; Pub. L. 89-570, Sec. 1(b)(1), 
Sept. 12, 1966, 80 Stat. 762; Pub. L. 91-172, title I, Sec. 101(j)(2), 
title II, Sec. 201(a)(1), (2)(A), (h)(1), Dec. 30, 1969, 83 Stat. 526, 
549, 558, 565; Pub. L. 94-455, title II, Sec. 205(c)(1)(A), title X, 
Sec. 1052(c)(2), title XIII, Secs. 1307(c), (d)(1)(B)(i), 1313(b)(1), 
title XIX, Secs. 1901(a)(28), (b)(8)(A), 1906(b)(13)(A), title XXI, 
Secs. 2124(e)(1), 2135(a), Oct. 4, 1976, 90 Stat. 1535, 1648, 1726, 
1727, 1730, 1768, 1794, 1834, 1919, 1928; Pub. L. 95-30, title III, 
Sec. 309(a), May 23, 1977, 91 Stat. 154; Pub. L. 95-600, title IV, 
Secs. 402(b)(2), 403(c)(1), Nov. 6, 1978, 92 Stat. 2868; Pub. L. 96-465, 
title II, Sec. 2206(e)(2), Oct. 17, 1980, 94 Stat. 2162; Pub. L. 96-541, 
Sec. 6(a), (b), Dec. 17, 1980, 94 Stat. 3206; Pub. L. 97-34, title I, 
Sec. 121(a), title II, Secs. 222(a), 263(a), Aug. 13, 1981, 95 Stat. 
196, 248, 264; Pub. L. 97-248, title II, Sec. 286(b)(1), Sept. 3, 1982, 
96 Stat. 570; Pub. L. 97-258, Sec. 3(f)(1), Sept. 13, 1982, 96 Stat. 
1064; Pub. L. 97-354, Sec. 5(a)(21), Oct. 19, 1982, 96 Stat. 1694; Pub. 
L. 97-448, title I, Sec. 102(f)(7), Jan. 12, 1983, 96 Stat. 2372; Pub. 
L. 97-473, title II, Sec. 202(b)(4), Jan. 14, 1983, 96 Stat. 2609; Pub. 
L. 98-369, div. A, title I, Sec. 174(b)(5)(A), title III, Sec. 301(a)-
(c), title IV, Sec. 492(b)(1), title X, Secs. 1022(b), 1031(a), 
1032(b)(1), 1035(a), July 18, 1984, 98 Stat. 707, 777, 778, 854, 1028, 
1033, 1042; Pub. L. 99-514, title I, Sec. 142(d), title II, Sec. 231(f), 
title III, Sec. 301(b)(2), title XVIII, Sec. 1831, Oct. 22, 1986, 100 
Stat. 2120, 2180, 2217, 2851; Pub. L. 100-203, title X, 
Sec. 10711(a)(1), Dec. 22, 1987, 101 Stat. 1330-464; Pub. L. 100-647, 
title VI, Sec. 6001(a), Nov. 10, 1988, 102 Stat. 3683; Pub. L. 101-508, 
title XI, Secs. 11801(a)(11), (c)(5), 11813(b)(10), Nov. 5, 1990, 104 
Stat. 1388-520, 1388-523, 1388-554; Pub. L. 103-66, title XIII, 
Secs. 13172(a), 13222(b), Aug. 10, 1993, 107 Stat. 455, 479; Pub. L. 
104-188, title I, Secs. 1206(a), 1316(b), Aug. 20, 1996, 110 Stat. 1776, 
1786; Pub. L. 105-34, title II, Sec. 224(a), title V, Sec. 508(d), title 
VI, Sec. 602(a), title IX, Sec. 973(a), Aug. 5, 1997, 111 Stat. 818, 
860, 862, 898; Pub. L. 105-206, title VI, Sec. 6004(e), July 22, 1998, 
112 Stat. 795; Pub. L. 105-277, div. J, title I, Sec. 1004(a)(1), Oct. 
21, 1998, 112 Stat. 2681-888; Pub. L. 106-170, title V, 
Secs. 532(c)(1)(A), (B), 537(a), Dec. 17, 1999, 113 Stat. 1930, 1936; 
Pub. L. 106-554, Sec. 1(a)(7) [title I, Sec. 165(a)-(e)], Dec. 21, 2000, 
114 Stat. 2763, 2763A-626.)

                       References in Text

    The Federal Food, Drug, and Cosmetic Act, as amended, referred to in 
subsec. (e)(3)(A)(iv), is act June 25, 1938, ch. 675, 52 Stat. 1040, as 
amended, which is classified generally to chapter 9 (Sec. 301 et seq.) 
of Title 21, Food and Drugs. For complete classification of this Act to 
the Code, see section 301 of Title 21 and Tables.
    The date of the enactment of the Community Renewal Tax Relief Act of 
2000, referred to in subsec. (e)(6)(B)(i)(III), is the date of enactment 
of H.R. 5662, as enacted by Pub. L. 106-554, which was approved Dec. 21, 
2000.
    Section 11(a) of the Internal Security Act of 1950 (50 U.S.C. 790), 
referred to in subsec. (k), was repealed by Pub. L. 103-199, title VIII, 
Sec. 803(1), Dec. 17, 1993, 107 Stat. 2329.
    Section 25 of the State Department Basic Authorities Act of 1956, 
referred to in subsec. (m)(7), is classified to section 2697 of Title 
22, Foreign Relations and Intercourse.


                               Amendments

    2000--Subsec. (e)(6). Pub. L. 106-554, Sec. 1(a)(7) [title I, 
Sec. 165(b)(2)], substituted ``educational purposes'' for ``elementary 
or secondary school purposes'' in heading.
    Subsec. (e)(6)(A), (B). Pub. L. 106-554, Sec. 1(a)(7) [title I, 
Sec. 165(a)(1)], substituted ``qualified computer contribution'' for 
``qualified elementary or secondary educational contribution'' in 
subpar. (A) and in heading and introductory provisions of subpar. (B).
    Subsec. (e)(6)(B)(i)(III). Pub. L. 106-554, Sec. 1(a)(7) [title I, 
Sec. 165(a)(2)], added subcl. (III).
    Subsec. (e)(6)(B)(ii). Pub. L. 106-554, Sec. 1(a)(7) [title I, 
Sec. 165(a)(3)], substituted ``3 years'' for ``2 years''.
    Subsec. (e)(6)(B)(iv). Pub. L. 106-554, Sec. 1(a)(7) [title I, 
Sec. 165(b)(1)], which directed the amendment of cl. (iv) by striking 
``in any grades of the K-12'', was executed by striking out ``in any of 
the grades K-12'' after ``educational purposes'', to reflect the 
probable intent of Congress.
    Subsec. (e)(6)(B)(viii). Pub. L. 106-554, Sec. 1(a)(7) [title I, 
Sec. 165(d)], added cl. (viii).
    Subsec. (e)(6)(C). Pub. L. 106-554, Sec. 1(a)(7) [title I, 
Sec. 165(a)(1)], substituted ``qualified computer contribution'' for 
``qualified elementary or secondary educational contribution'' in 
introductory provisions.
    Subsec. (e)(6)(D), (E). Pub. L. 106-554, Sec. 1(a)(7) [title I, 
Sec. 165(e)], added subpar. (D) and redesignated former subpar. (D) as 
(E). Former subpar. (E) redesignated (F).
    Subsec. (e)(6)(F). Pub. L. 106-554, Sec. 1(a)(7) [title I, 
Sec. 165(e)], redesignated subpar. (E) as (F). Former subpar. (F) 
redesignated (G).
    Pub. L. 106-554, Sec. 1(a)(7) [title I, Sec. 165(c)], substituted 
``December 31, 2003'' for ``December 31, 2000''.
    Subsec. (e)(6)(G). Pub. L. 106-554, Sec. 1(a)(7) [title I, 
Sec. 165(e)], redesignated subpar. (F) as (G).
    1999--Subsec. (e)(3)(A), (4)(B). Pub. L. 106-170, Sec. 532(c)(1)(A), 
(B), substituted ``section 1221(a)'' for ``section 1221''.
    Subsec. (f)(10). Pub. L. 106-170, Sec. 537(a), added par. (10).
    1998--Subsec. (e)(5)(D). Pub. L. 105-277 struck out heading and text 
of subpar. (D). Text read as follows: ``This paragraph shall not apply 
to contributions made--
        ``(i) after December 31, 1994, and before July 1, 1996, or
        ``(ii) after June 30, 1998.''
    Subsec. (e)(6)(B)(iv). Pub. L. 105-206, Sec. 6004(e)(2), substituted 
``function of the donee'' for ``function of the organization or 
entity''.
    Subsec. (e)(6)(B)(vi), (vii). Pub. L. 105-206, Sec. 6004(e)(1), 
substituted ``donee's'' for ``entity's''.
    Subsec. (e)(6)(C)(ii)(I). Pub. L. 105-206, Sec. 6004(e)(3), 
substituted ``a donee'' for ``an entity''.
    Subsec. (e)(6)(F). Pub. L. 105-206, Sec. 6004(e)(4), substituted 
``2000'' for ``1999''.
    1997--Subsec. (e)(5)(D)(ii). Pub. L. 105-34, Sec. 602(a), 
substituted ``June 30, 1998'' for ``May 31, 1997''.
    Subsec. (e)(6). Pub. L. 105-34, Sec. 224(a), added par. (6).
    Subsec. (h)(5)(B)(ii). Pub. L. 105-34, Sec. 508(d), amended heading 
and text of cl. (ii) generally. Prior to amendment, text read as 
follows: ``With respect to any contribution of property in which the 
ownership of the surface estate and mineral interests were separated 
before June 13, 1976, and remain so separated, subparagraph (A) shall be 
treated as met if the probability of surface mining occurring on such 
property is so remote as to be negligible.''
    Subsec. (i). Pub. L. 105-34, Sec. 973(a), amended heading and text 
of subsec. (i) generally. Prior to amendment, text read as follows: 
``For purposes of computing the deduction under this section for use of 
a passenger automobile the standard mileage rate shall be 12 cents per 
mile.''
    1996--Subsec. (e)(1). Pub. L. 104-188, Sec. 1316(b), inserted at end 
``For purposes of applying this paragraph in the case of a charitable 
contribution of stock in an S corporation, rules similar to the rules of 
section 751 shall apply in determining whether gain on such stock would 
have been long-term capital gain if such stock were sold by the 
taxpayer.''
    Subsec. (e)(5)(D). Pub. L. 104-188, Sec. 1206(a), reenacted heading 
without change and amended text generally. Prior to amendment, text read 
as follows: ``This paragraph shall not apply to contributions made after 
December 31, 1994.''
    1993--Subsec. (f)(8). Pub. L. 103-66, Sec. 13172(a), added par. (8).
    Subsec. (f)(9). Pub. L. 103-66, Sec. 13222(b), added par. (9).
    1990--Subsec. (h)(4)(B)(ii). Pub. L. 101-508, Sec. 11813(b)(10), 
substituted ``section 47(c)(3)(B)'' for ``section 48(g)(3)(B)''.
    Subsec. (i). Pub. L. 101-508, Sec. 11801(a)(11), (c)(5), 
redesignated subsec. (j) as (i) and struck out former subsec. (i) which 
related to rule for nonitemization of deductions, applicable percentage 
for individuals, limitation for taxable years beginning before 1985, and 
termination.
    Subsecs. (j) to (n). Pub. L. 101-508, Sec. 11801(c)(5), redesignated 
subsecs. (j) to (n) as (i) to (m), respectively.
    1988--Subsecs. (m), (n). Pub. L. 100-647 added subsec. (m) and 
redesignated former subsec. (m) as (n).
    1987--Subsec. (c)(2)(D). Pub. L. 100-203 inserted ``(or in 
opposition to)'' after ``on behalf of''.
    1986--Subsec. (b)(1)(C)(iv). Pub. L. 99-514, Sec. 1831, substituted 
``this paragraph'' for ``this subparagraph''.
    Subsec. (e)(1)(B). Pub. L. 99-514, Sec. 301(b)(2), in closing 
provisions, struck out ``40 percent (\28/46\ in the case of a 
corporation) of'' before ``the amount of gain''.
    Subsec. (e)(4)(B)(i). Pub. L. 99-514, Sec. 231(f), amended cl. (i) 
generally. Prior to amendment, cl. (i) read as follows: ``the 
contribution is to an educational organization which is described in 
subsection (b)(1)(A)(ii) of this section and which is an institution of 
higher education (as defined in section 3304(f)),''.
    Subsecs. (k) to (m). Pub. L. 99-514, Sec. 142(d), added subsec. (k) 
and redesignated former subsecs. (k) and (l) as (l) and (m), 
respectively.
    1984--Subsec. (a)(3). Pub. L. 98-369, Sec. 174(b)(5)(A), substituted 
``section 267(b) or 707(b)'' for ``section 267(b)''.
    Subsec. (b)(1)(A)(vii). Pub. L. 98-369, Sec. 301(c)(2)(A), 
substituted ``subparagraph (E)'' for ``subparagraph (D)''.
    Subsec. (b)(1)(B). Pub. L. 98-369, Sec. 301(a)(2), inserted at end 
``If the aggregate of such contributions exceeds the limitation of the 
preceding sentence, such excess shall be treated (in a manner consistent 
with the rules of subsection (d)(1)) as a charitable contribution (to 
which subparagraph (A) does not apply) in each of the 5 succeeding 
taxable years in order of time.''
    Subsec. (b)(1)(B)(i). Pub. L. 98-369, Sec. 301(a)(1), substituted 
``30 percent'' for ``20 percent''.
    Subsec. (b)(1)(C). Pub. L. 98-369, Sec. 301(c)(2)(B), inserted 
``described in subparagraph (A)'' in subpar. (C) heading, and in text of 
cl. (i) substituted ``In the case of charitable contributions described 
in subparagraph (A) of capital gain property to which subsection 
(e)(1)(B) does not apply, the total amount of contributions of such 
property which may be taken into account under subsection (a) for any 
taxable year shall not exceed 30 percent of the taxpayer's contribution 
base for such year. For purposes of this subsection, contributions of 
capital gain property to which this subparagraph applies shall be taken 
into account after all other charitable contributions (other than 
charitable contributions to which subparagraph (D) applies)'' for ``In 
the case of charitable contributions of capital gain property to which 
subsection (e)(1)(B) does not apply, the total amount of contributions 
of such property which may be taken into account under subsection (a) 
for any taxable year shall not exceed 30 percent of the taxpayer's 
contribution base for such year. For purposes of this subsection, 
contributions of capital gain property to which this paragraph applies 
shall be taken into account after all other charitable contributions''.
    Subsec. (b)(1)(D) to (F). Pub. L. 98-369, Sec. 301(c)(1), added 
subpar. (D) and redesignated former subpars. (D) and (E) as (E) and (F), 
respectively.
    Subsec. (e)(1). Pub. L. 98-369, Sec. 492(b)(1)(A), struck out in 
provision following subpar. (B) ``1251(c),'' after ``1250(a)''.
    Subsec. (e)(1)(B)(ii). Pub. L. 98-369, Sec. 301(c)(2)(C), 
substituted ``subsection (b)(1)(E)'' for ``subsection (b)(1)(D)''.
    Subsec. (e)(3)(C). Pub. L. 98-369, Sec. 492(b)(1)(B), struck out 
``1251,'' after ``1250,''.
    Subsec. (e)(5). Pub. L. 98-369, Sec. 301(b), added par. (5).
    Subsec. (f)(7). Pub. L. 98-369, Sec. 1022(b), added par. (7).
    Subsec. (h)(5)(B). Pub. L. 98-369, Sec. 1035(a), designated existing 
provisions as cl. (i), inserted ``Except as provided in clause (ii)'', 
and added cl. (ii).
    Subsec. (j). Pub. L. 98-369, Sec. 1031(a), added subsec. (j). Former 
subsec. (j) redesignated (k).
    Subsec. (k). Pub. L. 98-369, Sec. 1031(a), redesignated subsec. (j) 
as (k). Former subsec. (k) redesignated (l).
    Subsec. (l). Pub. L. 98-369, Sec. 1032(b)(1), added par. (1) and 
redesignated former pars. (1) to (8) as (2) to (9), respectively.
    Pub. L. 98-369, Sec. 1031(a), redesignated subsec. (k) as (l).
    1983--Subsec. (h)(4)(B)(ii). Pub. L. 97-448 substituted ``section 
48(g)(3)(B)'' for ``section 191(d)(2)''.
    Subsec. (k)(8). Pub. L. 97-473 added par. (8).
    1982--Subsec. (c)(2). Pub. L. 97-248 inserted provision that rules 
similar to the rules of section 501(j) of this title shall apply for 
purposes of this paragraph.
    Subsec. (e)(3)(A). Pub. L. 97-354, Sec. 5(a)(21)(A), substituted 
``an S corporation'' for ``an electing small business corporation within 
the meaning of section 1371(b)''.
    Subsec. (e)(4)(D)(i). Pub. L. 97-354, Sec. 5(a)(21)(B), substituted 
``an S corporation'' for ``an electing small business corporation (as 
defined in section 1371(b))''.
    Subsec. (k)(7). Pub. L. 97-258 substituted ``section 4043 of title 
18, United States Code'' for ``section 2 of the Act of May 15, 1952, as 
amended by the Act of July 9, 1952 (31 U.S.C. 725s-4)''.
    1981--Subsec. (b)(2). Pub. L. 97-34, Sec. 263(a), increased to 10 
from 5 percent deduction allowable to a corporation in any taxable year 
for charitable contributions.
    Subsec. (e)(4). Pub. L. 97-34, Sec. 222(a), added par. (4).
    Subsec. (i). Pub. L. 97-34, Sec. 121(a), added subsec. (i). Former 
subsec. (i) redesignated (j).
    Subsecs. (j), (k). Pub. L. 97-34, Sec. 121(a), redesignated former 
subsecs. (i) and (j) as (j) and (k), respectively.
    1980--Subsec. (f)(3). Pub. L. 96-541, Sec. 6(a), reenacted subpar. 
(B), cls. (i) and (ii), substituted cl. (B)(iii) relating to qualified 
conservation contribution for prior cl. (B)(iii) relating to 
contribution of a lease on, option to purchase, or easement with respect 
to real property granted in perpetuity to a subsec. (b)(1)(A) 
organization exclusively for conservation purposes, deleted cl. (B)(iv) 
respecting contribution of a remainder interest in real property granted 
to a subsec. (b)(1)(A) organization exclusively for conservation 
purposes, and deleted subpar. (C) definition of ``conservation 
purposes'', now covered in an expanded subsec. (h)(4)(A).
    Subsecs. (h), (i). Pub. L. 96-541, Sec. 6(b), added subsec. (h) and 
redesignated former subsec. (h) as (i). Former subsec. (i) redesignated 
(j).
    Subsec. (i)(6). Pub. L. 96-465, among other changes, inserted 
references to Director of the International Communication Agency and the 
Director of the United States International Development Cooperation 
Agency, and substituted reference to section 25 of the State Department 
Basic Authorities Act of 1956 for reference to section 1021(e) of the 
Foreign Service Act of 1946.
    Subsec. (j). Pub. L. 96-541, Sec. 6(b), redesignated former subsec. 
(i) as (j).
    1978--Subsec. (e)(1)(B). Pub. L. 95-600 substituted ``40 percent'' 
for ``50 percent'' and ``\28/46\'' for ``62\1/2\ percent''.
    1977--Subsec. (f)(3)(B)(iii). Pub. L. 95-30 substituted ``real 
property granted in perpetuity to an organization'' for ``real property 
of not less than 30 years' duration granted to an organization''.
    1976--Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out 
``or his delegate'' after ``Secretary''.
    Subsec. (b)(1)(A)(vii). Pub. L. 94-455, Sec. 1901(a)(28)(A)(iii), 
substituted ``subparagraph (D)'' for ``subparagraph (E)'' after 
``described in''.
    Subsec. (b)(1)(B)(ii). Pub. L. 94-455, Sec. 1901(a)(28)(A)(iv), 
substituted ``subparagraph (C)'' for ``subparagraph (D)'' after 
``without regard to''.
    Subsec. (b)(1)(C). Pub. L. 94-455, Sec. 1901(a)(28)(A)(ii), struck 
out subpar. (C) which related to unlimited deductions for certain 
individuals, redesignated subpar. (D) as (C) and, as so redesignated, 
Sec. 1906(b)(13)(A), struck out ``or his delegate'' after ``Secretary'' 
in cl. (iii).
    Subsec. (b)(1)(D) to (F). Pub. L. 94-455, Sec. 1901(a)(28)(A)(ii), 
redesignated subpars. (D) to (F) as (C) to (E), respectively.
    Subsec. (b)(2). Pub. L. 95-455, Sec. 1052(c)(2), struck out subpar. 
(D) which related to a special deduction for Western Hemisphere trade 
corporations, and redesignated subpar. (E) as (D).
    Subsec. (c). Pub. L. 94-455, Sec. 1901(a)(28)(A)(v), substituted 
``subsection (g)'' for ``subsection (h)'' after ``amount treated 
under''.
    Subsec. (c)(2)(B). Pub. L. 94-455, Sec. 1313(b)(1), inserted ``or to 
foster national or international amateur sports competition (but only if 
no part of its activities involves the provision of athletic facilities 
or equipment)'' after ``or educational purposes''.
    Subsec. (c)(2)(D). Pub. L. 94-445, Sec. 1307(d)(1)(B)(i), 
substituted ``which is not disqualified for tax exemption under section 
501(c)(3) by reason of attempting to influence legislation'' for ``no 
substantial part of the activities of which is carrying on propaganda, 
or otherwise attempting to influence legislation'' after ``(D)''.
    Subsec. (d)(1)(A). Pub. L. 94-455, Sec. 1901(a)(28)(B), struck out 
``(30 percent in the case of a contribution year beginning before 
January 1, 1970)'' after ``exceeds 50 percent''.
    Subsec. (e)(1). Pub. L. 94-455, Sec. 205(c)(1)(A), substituted 
``1252(a), or 1254(a)'' for ``or 1252(a)'' after ``1251(c)''.
    Subsec. (e)(1)(B)(ii). Pub. L. 94-455, Sec. 1901(a)(28)(A)(vi), 
substituted ``subsection (b)(1)(D)'' for ``subsection (b)(1)(E)'' after 
``foundation described in''.
    Subsec. (e)(2). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out ``or 
his delegate'' after ``Secretary''.
    Subsec. (e)(3). Pub. L. 94-455, Sec. 2135(a), added par. (3).
    Subsec. (f)(2). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out ``or 
his delegate'' after ``Secretary''.
    Subsec. (f)(3). Pub. L. 94-455, Sec. 2124(e)(1), added subpars. 
(B)(iii), (iv), and (C).
    Subsec. (f)(4). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out ``or 
his delegate'' after ``Secretary''.
    Subsec. (f)(6). Pub. L. 94-455, Secs. 1307(c), 1901(a)(28)(A)(i), 
added par. (6). Former par. (6), which related to the partial reduction 
of unlimited deduction and definitions for transitional income and 
deduction percentages, was struck out. Section 1901(a)(28)(A)(i) of Pub. 
L. 94-455 struck out par. (6) a second time.
    Subsec. (g). Pub. L. 94-455, Sec. 1901(a)(28)(A)(i), struck out 
subsec. (g) which related to application of unlimited charitable 
contribution deductions allowed for taxable years beginning before 
January 1, 1975, and redesignated subsecs. (h), (i), and (j) as (g), 
(h), and (i), respectively. Section 1901(a)(28)(A)(i) also struck out 
former subsec. (f)(6) but this direction was not executed as such former 
subsec. (f)(6) had previously been stricken by section 1307(c) of Pub. 
L. 94-455.
    Subsec. (g)(1)(B). Pub. L. 94-455, Sec. 1901(b)(8)(A), substituted 
``educational organization described in section 170(b)(1)(A)(ii)'' for 
``educational institution (as defined in section 151(e)(4)'' after 
``grade at an''.
    Subsec. (h). Pub. L. 94-455, Sec. 1901(a)(28)(A)(i), (C), 
redesignated subsec. (i) as (h), and struck out ``64 Stat. 996'' after 
``Act of 1950''. Former subsec. (h) redesignated (g).
    Subsec. (i). Pub. L. 94-455, Sec. 1901(a)(28)(A)(i), (D), 
redesignated subsec. (j) as (i) and substituted ``6973 of title 10, 
United States Code'' for ``3 of the Act of March 31, 1944 (58 Stat. 135; 
34 U.S.C. 1115b)'' after ``see section'' in par. (5); struck out par. 
(6) relating to gifts to library of Post Office Department; struck out 
``60 Stat. 924'' after ``1946'' in par. (7); substituted ``as amended by 
the Act of July 9, 1952 (3 U.S.C. 725s-4)'' for ``(66 Stat. 73, as 
amended by Act of July 9, 1952, 66 Stat. 479, 31 U.S.C. 725s-4)'' after 
``May 15, 1952'' in par. (8); and redesignated pars. (7) and (8) as 
pars. (6) and (7), respectively. Former subsec. (i) redesignated (h).
    Subsec. (j). Pub. L. 94-455, Sec. 1901(a)(28)(A)(i), redesignated 
subsec. (j) as (i).
    1969--Subsec. (a)(3). Pub. L. 91-172, Sec. 201(a)(1)(B), added par. 
(3).
    Subsec. (b). Pub. L. 91-172, Sec. 201(a)(1)(B), (h)(1), increased 
the general limitation on the charitable contributions deduction for 
individual taxpayers from 30 percent of adjusted gross income to 50 
percent of his contribution base and provided that where a taxpayer 
makes a contribution to a public charity of property which has 
appreciated in value the taxpayer could deduct such contributions of 
property under the 50 percent limitation if he elects to take the 
unrealized appreciation in value into account for the tax purposes, the 
unlimited charitable deduction is phased out over a 5-year period and 
contributions to a private operating foundation and contributions to a 
private nonoperating foundation distributing such contributions to 
public charities or private operating foundations within two and half 
months following the year of receipt are also subjected to 50 percent 
limitation (30 percent in the case of gifts of appreciated property), 
and, in par. (1)(C), inserted provisions relating to the determination 
of the amount of charitable contributions and taxes paid by a married 
individual who previously filed a joint return with a former deceased 
spouse.
    Subsec. (c). Pub. L. 91-172, Sec. 201(a)(1)(B), struck out 
references to ``Territory'' in pars. (1) and (2)(A), and inserted 
reference to participation in or intervention in any political campaign 
on behalf of any candidate for public office in par. (2)(D).
    Subsec. (d). Pub. L. 91-172, Sec. 201(a)(1)(B), added subsec. (d) 
consisting of provisions substantially transferred from subsec. (b) in 
the general amendment of subsec. (b) by Pub. L. 91-172. Former subsec. 
(d) redesignated (b).
    Subsec. (e). Pub. L. 91-172, Sec. 201(a)(1)(B), substituted 
provisions covering certain contributions of ordinary income and capital 
gain property for provisions setting out a special rule for charitable 
contributions.
    Subsec. (f). Pub. L. 91-172, Sec. 201(a)(1)(B), substituted 
provisions for the disallowance of the deduction in specified cases for 
provision covering future interests in tangible personal property.
    Subsec. (g). Pub. L. 91-172, Sec. 201(a)(2)(A), substituted 
``subsection (d)(1)'' for ``subsection (b)(5)'' in two places in par. 
(1) and struck out par. (2)(B) covering contributions to organizations 
substantially more than half of the assets and the total income were 
devoted to charitable purposes.
    Subsec. (h). Pub. L. 91-172, Sec. 201(a)(1)(A), redesignated subsec. 
(d) as (h). Former subsec. (h) redesignated (i).
    Subsec. (i). Pub. L. 91-172, Secs. 101(j)(2), 201(a)(1)(A), 
redesignated former subsec. (h) as (i), struck out par. (1) covering 
disallowance of deductions for gifts to charitable organizations 
engaging in prohibited transactions, and removed the par. (2) 
designation from the provisions covering disallowance of deductions for 
use of communist controlled organizations. Former subsec. (i) 
redesignated (j).
    Subsec. (j). Pub. L. 91-172, Sec. 201(a)(1)(A), redesignated former 
subsec. (i) as (j).
    1966--Subsec. (e). Pub. L. 89-570 inserted reference to section 
617(d)(1).
    1964--Subsec. (b)(1)(A)(v), (vi), (2), (5). Pub. L. 88-272, Sec. 209 
(a), (c)(1), (d)(1), added cls. (v) and (vi) in par. (1)(A), and par. 
(5), and in par. (2), extended the 2-year carryforward of unused 
charitable contributions to 5 years and changed the method of 
computation by including the aggregate of the excess contributions made 
in taxable years before the contribution year, in cl. (i), and 
references to third, fourth or fifth succeeding years in cl. (ii).
    Subsec. (e). Pub. L. 88-272, Sec. 231(b)(1), substituted ``certain 
property'' for ``section 1245 property'' in heading, and inserted 
reference to section 1250(a) in text.
    Subsec. (f). Pub. L. 88-272, Sec. 209(e), added subsec. (f). Former 
subsec. (f) redesignated (h).
    Subsec. (g). Pub. L. 88-272, Sec. 209(b), added subsec. (g). Former 
subsec. (g) redesignated (i).
    Subsecs. (h), (i). Pub. L. 88-272, Sec. 209(e), redesignated former 
subsecs. (f) and (g) as (h) and (i), respectively.
    1962--Subsec. (b)(1)(A)(iv). Pub. L. 87-858, Sec. 2(a), added cl. 
(iv).
    Subsec. (b)(1)(B). Pub. L. 87-858, Sec. 2(b), substituted ``any 
charitable contributions described in subparagraph (A)'' for ``any 
charitable contributions to the organizations described in clauses (i), 
(ii), and (iii)''.
    Subsecs. (e) to (g). Pub. L. 87-834 added subsec. (e) and 
redesignated former subsecs. (e) and (f) as (f) and (g), respectively.
    1960--Subsec. (c). Pub. L. 86-779, Sec. 7(a)(1), inserted sentence 
additionally defining ``charitable contribution'' for purposes of the 
section.
    Subsecs. (d) to (f). Pub. L. 86-779, Sec. 7(a)(2), added subsec. (d) 
and redesignated former subsecs. (d) and (e) as (e) and (f), 
respectively.
    1958--Subsec. (b)(1)(C). Pub. L. 85-866, Sec. 10(a), inserted 
sentence allowing substitution, in lieu of amount of tax paid during 
year, amount of tax paid in respect of such year, provided amount so 
included in the year in respect of which payment was made be not 
included in any other year.
    Subsec. (b)(3). Pub. L. 85-866, Sec. 11, added par. (3).
    Subsec. (b)(4). Pub. L. 85-866, Sec. 12, added par. (4).
    1956--Subsec. (b)(1)(A)(iii). Act Aug. 7, 1956, Sec. 1, provided for 
the allowance, as deductions, of contributions to medical research 
organizations.

                         Change of Name

    International Communication Agency, and Director thereof, 
redesignated United States Information Agency, and Director thereof, by 
section 303 of Pub. L. 97-241, title III, Aug. 24, 1982, 96 Stat. 291, 
set out as a note under section 1461 of Title 22, Foreign Relations and 
Intercourse. United States Information Agency (other than Broadcasting 
Board of Governors and International Broadcasting Bureau) abolished and 
functions transferred to Secretary of State, see sections 6531 and 6532 
of Title 22.


                    Effective Date of 2000 Amendment

    Pub. L. 106-554, Sec. 1(a)(7) [title I, Sec. 165(f)], Dec. 21, 2000, 
114 Stat. 2763, 2763A-627, provided that: ``The amendments made by this 
section [amending this section] shall apply to contributions made after 
December 31, 2000.''


                    Effective Date of 1999 Amendment

    Pub. L. 106-170, title V, Sec. 532(d), Dec. 17, 1999, 113 Stat. 
1931, provided that: ``The amendments made by this section [amending 
this section and sections 198, 263A, 267, 341, 367, 475, 543, 751, 775, 
818, 856, 857, 864, 865, 871, 954, 988, 995, 1017, 1092, 1221, 1231, 
1234, 1256, 1362, 1397B, 4662, and 7704 of this title] shall apply to 
any instrument held, acquired, or entered into, any transaction entered 
into, and supplies held or acquired on or after the date of the 
enactment of this Act [Dec. 17, 1999].''
    Pub. L. 106-170, title V, Sec. 537(b), Dec. 17, 1999, 113 Stat. 
1938, provided that:
    ``(1) In general.--Except as otherwise provided in this section 
[amending this section], the amendment made by this section shall apply 
to transfers made after February 8, 1999.
    ``(2) Excise tax.--Except as provided in paragraph (3) of this 
subsection, section 170(f)(10)(F) of the Internal Revenue Code of 1986 
(as added by this section) shall apply to premiums paid after the date 
of the enactment of this Act [Dec. 17, 1999].
    ``(3) Reporting.--Clause (iii) of such section 170(f)(10)(F) shall 
apply to premiums paid after February 8, 1999 (determined as if the tax 
imposed by such section applies to premiums paid after such date).''


                    Effective Date of 1998 Amendments

    Pub. L. 105-277, div. J, title I, Sec. 1004(a)(2), Oct. 21, 1998, 
112 Stat. 2681-888, provided that: ``The amendment made by paragraph (1) 
[amending this section] shall apply to contributions made after June 30, 
1998.''
    Amendment by Pub. L. 105-206 effective, except as otherwise 
provided, as if included in the provisions of the Taxpayer Relief Act of 
1997, Pub. L. 105-34, to which such amendment relates, see section 6024 
of Pub. L. 105-206, set out as a note under section 1 of this title.


                    Effective Date of 1997 Amendment

    Section 224(b) of Pub. L. 105-34 provided that: ``The amendment made 
by this section [amending this section] shall apply to taxable years 
beginning after December 31, 1997.''
    Section 508(e)(2) of Pub. L. 105-34 provided that: ``The amendments 
made by subsections (c) and (d) [amending this section and section 2032A 
of this title] shall apply to easements granted after December 31, 
1997.''
    Section 602(b) of Pub. L. 105-34 provided that: ``The amendment made 
by subsection (a) [amending this section] shall apply to contributions 
made after May 31, 1997.''
    Section 973(b) of Pub. L. 105-34 provided that: ``The amendment made 
by subsection (a) [amending this section] shall apply to taxable years 
beginning after December 31, 1997.''


                    Effective Date of 1996 Amendment

    Section 1206(b) of Pub. L. 104-188 provided that: ``The amendment 
made by this section [amending this section] shall apply to 
contributions made after June 30, 1996.''
    Section 1316(f) of Pub. L. 104-188 provided that: ``The amendments 
made by this section [amending this section and sections 404, 512, 1042, 
and 1361 of this title] shall apply to taxable years beginning after 
December 31, 1997.''


                    Effective Date of 1993 Amendment

    Section 13172(b) of Pub. L. 103-66 provided that: ``The provisions 
of this section [amending this section] shall apply to contributions 
made on or after January 1, 1994.''
    Amendment by section 13222(b) of Pub. L. 103-66 applicable to 
amounts paid or incurred after Dec. 31, 1993, see section 13222(e) of 
Pub. L. 103-66 set out as a note under section 162 of this title.


                    Effective Date of 1990 Amendment

    Amendment by section 11813(b)(10) of Pub. L. 101-508 applicable to 
property placed in service after Dec. 31, 1990, but not applicable to 
any transition property (as defined in section 49(e) of this title), any 
property with respect to which qualified progress expenditures were 
previously taken into account under section 46(d) of this title, and any 
property described in section 46(b)(2)(C) of this title, as such 
sections were in effect on Nov. 4, 1990, see section 11813(c) of Pub. L. 
101-508, set out as a note under section 29 of this title.


                    Effective Date of 1988 Amendment

    Section 6001(b) of Pub. L. 100-647 provided that:
    ``(1) In general.--The amendment made by this section [amending this 
section] shall apply to taxable years beginning after December 31, 1983.
    ``(2) Waiver of statute of limitations.--If on the date of the 
enactment of this Act [Nov. 10, 1988] (or at any time within 1 year 
after such date of enactment) refund or credit of any overpayment of tax 
resulting from the application of section 170(m) of the 1986 Code (as 
added by subsection (a)) is barred by any law or rule of law, refund or 
credit of such overpayment shall, nevertheless, be made or allowed if 
claim therefore [sic] is filed before the date 1 year after the date of 
the enactment of this Act.''


                    Effective Date of 1987 Amendment

    Section 10711(c) of Pub. L. 100-203 provided that: ``The amendments 
made by this section [amending this section and sections 501, 504, 2055, 
2106, and 2522 of this title] shall apply with respect to activities 
after the date of the enactment of this Act [Dec. 22, 1987].''


                    Effective Date of 1986 Amendment

    Amendment by section 142(d) of Pub. L. 99-514 applicable to taxable 
years beginning after Dec. 31, 1986, see section 151(a) of Pub. L. 99-
514, set out as a note under section 1 of this title.
    Amendment by section 231(f) of Pub. L. 99-514 applicable to taxable 
years beginning after Dec. 31, 1985, see section 231(g) of Pub. L. 99-
514, set out as a note under section 41 of this title.
    Amendment by section 301(b)(2) of Pub. L. 99-514 applicable to 
taxable years beginning after Dec. 31, 1986, see section 301(c) of Pub. 
L. 99-514, set out as a note under section 62 of this title.
    Amendment by section 1831 of Pub. L. 99-514 effective, except as 
otherwise provided, as if included in the provisions of the Tax Reform 
Act of 1984, Pub. L. 98-369, div. A, to which such amendment relates, 
see section 1881 of Pub. L. 99-514, set out as a note under section 48 
of this title.


                    Effective Date of 1984 Amendment

    Amendment by section 174(b)(5)(A) of Pub. L. 98-369, applicable to 
transactions after Dec. 31, 1983, in taxable years ending after that 
date, see section 174(c)(2)(A) of Pub. L. 98-369, set out as a note 
under section 267 of this title.
    Section 301(d) of Pub. L. 98-369 provided that:
    ``(1) Subsections (a) and (c).--The amendments made by subsections 
(a) and (c) [amending this section] shall apply to contributions made in 
taxable years ending after the date of the enactment of this Act [July 
18, 1984].
    ``(2) Subsection (b).--The amendment made by subsection (b) 
[amending this section] shall apply to contributions made after the date 
of the enactment of this Act [July 18, 1984] in taxable years ending 
after such date.''
    Section 492(d) of Pub. L. 98-369 provided that: ``The amendments 
made by this section [amending this section and sections 341, 453B, 751, 
and 1252 of this title and repealing section 1251 of this title] shall 
apply to taxable years beginning after December 31, 1983.''
    Amendment by section 1022(b) of Pub. L. 98-369 applicable to 
reformations after Dec. 31, 1978, except inapplicable to any reformation 
to which section 2055(e)(3) of this title as in effect before July 18, 
1984, applies, see section 1022(e)(1) of Pub. L. 98-369, set out as a 
note under section 2055 of this title.
    Section 1031(b) of Pub. L. 98-369 provided that: ``The amendments 
made by subsection (a) [amending this section] shall apply to taxable 
years beginning after December 31, 1984.''
    Section 1032(c) of Pub. L. 98-369 provided that: ``The amendments 
made by subsections (a) and (b) [amending this section and sections 501, 
2055, and 2522 of this title] shall apply to taxable years beginning 
after the date of the enactment of this Act [July 18, 1984].''
    Section 1035(b) of Pub. L. 98-369 provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply to 
contributions made after the date of the enactment of this Act [July 18, 
1984].''


                    Effective Date of 1983 Amendments

    For effective date of amendment by Pub. L. 97-473, see section 
204(1) of Pub. L. 97-473, set out as an Effective Date note under 
section 7871 of this title.
    Amendment by title I of Pub. L. 97-448 effective, except as 
otherwise provided, as if it had been included in the provision of the 
Economic Recovery Tax Act of 1981, Pub. L. 97-34, to which such 
amendment relates, see section 109 of Pub. L. 97-448, set out as a note 
under section 1 of this title.


                    Effective Date of 1982 Amendments

    Amendment by Pub. L. 97-354 applicable to taxable years beginning 
after Dec. 31, 1982, see section 6(a) of Pub. L. 97-354, set out as an 
Effective Date note under section 1361 of this title.
    Amendment by Pub. L. 97-248 effective Oct. 5, 1976, see section 
286(c) of Pub. L. 97-248, set out as a note under section 501 of this 
title.


                    Effective Date of 1981 Amendment

    Section 121(d) of Pub. L. 97-34 provided that: ``The amendments made 
by this section [amending this section and sections 3, 57, and 63 of 
this title] shall apply to contributions made after December 31, 1981, 
in taxable years beginning after such date.''
    Section 222(b) of Pub. L. 97-34 provided that: ``The amendment made 
by subsection (a) [amending this section] shall apply to charitable 
contributions made after the date of the enactment of this Act [Aug. 13, 
1981], in taxable years ending after such date.''
    Section 263(b) of Pub. L. 97-34 provided that: ``The amendment made 
by this section [amending this section] shall apply to taxable years 
beginning after December 31, 1981.''


                    Effective Date of 1980 Amendments

    Section 6(d) of Pub. L. 96-541 provided that: ``The amendments made 
by subsections (a) and (b) [amending this section] shall apply to 
transfers made after the date of the enactment of this Act [Dec. 17, 
1980] in taxable years ending after such date.''
    Amendment by Pub. L. 96-465 effective Feb. 15, 1981, except as 
otherwise provided, see section 2403 of Pub. L. 96-465, set out as an 
Effective Date note under section 3901 of Title 22, Foreign Relations 
and Intercourse.


                    Effective Date of 1978 Amendment

    Section 402(c)(2) of Pub. L. 95-600 provided that: ``The amendment 
made by subsection (b)(2) [amending this section by substituting ``40 
percent'' for ``50 percent''] shall apply to contributions made after 
October 31, 1978.''
    Section 403(d)(2) of Pub. L. 95-600 provided that: ``The amendment 
made by paragraph (1) of subsection (c) [amending this section by 
substituting ``\28/46\'' for ``62\1/2\ percent''] shall apply to gifts 
made after December 31, 1978.''


                    Effective Date of 1977 Amendment

    Section 309(b)(1) of Pub. L. 95-30, as amended by Pub. L. 96-541, 
Sec. 6(c), Dec. 17, 1980, 94 Stat. 3207, provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply with respect 
to contributions or transfers made after June 13, 1977.''


                    Effective Date of 1976 Amendment

    Section 1052(d) of Pub. L. 94-455 provided that: ``The amendments 
made by subsection (a) and paragraph (1) of subsection (c) [amending 
section 922 of this title] shall apply with respect to taxable years 
beginning after December 31, 1975. The amendments made by subsection (b) 
[repealing sections 921 and 922 of this title] and by subsection (c) 
(other than paragraph (1)) [amending this section and sections 172, 907, 
1503, and 6091 of this title] shall apply with respect to taxable years 
beginning after December 31, 1979.''
    Amendment by section 1307 (d)(1)(B)(i), (c) of Pub. L. 94-455 
effective for taxable years beginning after Dec. 31, 1976, see section 
1307(e) of Pub. L. 94-455, set out as a note under section 501 of this 
title.
    Amendment by section 1313(b)(1) of Pub. L. 94-455 effective Oct. 5, 
1976, see section 1313(e) of Pub. L. 94-455, set out as a note under 
section 501 of this title.
    Amendment by section 1901(a)(28) of Pub. L. 94-455 effective for 
taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. 
L. 94-455, set out as a note under section 2 of this title.
    Section 2124(e)(4) of Pub. L. 94-455, as amended by Pub. L. 95-30, 
title III, Sec. 309(b)(2), May 23, 1977, 91 Stat. 154; Pub. L. 96-541, 
Sec. 6(c), Dec. 17, 1980, 94 Stat. 3207, provided that: ``The amendments 
made by this subsection [amending this section and sections 2055 and 
2522 of this title] shall apply with respect to contributions or 
transfers made after June 13, 1976.''
    Section 2135(b) of Pub. L. 94-455 provided that: ``The amendment 
made by this section [amending this section] applies to charitable 
contributions made after the date of enactment of this Act [Oct. 4, 
1976], in taxable years ending after such date.''


                    Effective Date of 1969 Amendment

    Amendment by section 101(j)(2) of Pub. L. 91-172 to take effect on 
Jan. 1, 1970, see section 101(k)(1) of Pub. L. 91-172, set out as an 
Effective Date note under section 4940 of this title.
    Section 201(g) of Pub. L. 91-172, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
    ``(1)(A) Except as provided in subparagraphs (B) and (C), the 
amendments made by subsection (a) [amending this section and sections 
545, 556, and 809 of this title] shall apply to taxable years beginning 
after December 31, 1969.
    ``(B) Subsections (e) and (f)(1) of section 170 of the Internal 
Revenue Code of 1986 [formerly I.R.C. 1954] (as amended by subsection 
(a)) shall apply to contributions paid after December 31, 1969, except 
that, with respect to a letter or memorandum or similar property 
described in section 1221(3) of such Code (as amended by section 514 of 
this Act), such subsection (e) shall apply to contributions paid after 
July 25, 1969.
    ``(C) Paragraphs (2), (3), and (4) of section 170(f) of such Code 
(as amended by subsection (a)) shall apply to transfers in trust and 
contributions made after July 31, 1969.
    ``(D) For purposes of applying section 170(d) of such Code (as 
amended by subsection (a)) with respect to contributions paid in a 
taxable year beginning before January 1, 1970, subsection (b)(1)(D), 
subsection (e), and paragraphs (1), (2), (3), and (4) of subsection (f) 
of section 170 of such Code shall not apply.
    ``(2) The amendments made by subsection (b) [amending section 642 of 
this title] shall apply with respect to amounts paid, permanently set 
aside, or to be used for a charitable purpose in taxable years beginning 
after December 31, 1969, except that section 642(c)(5) of the Internal 
Revenue Code of 1986 (as added by subsection (b)) shall apply to 
transfers in trust made after July 31, 1969.
    ``(3) The amendment made by subsection (c) [amending section 673 of 
this title] shall apply to transfers in trust made after April 22, 1969.
    ``(4)(A) Except as provided in subparagraphs (B) and (C), the 
amendments made by paragraphs (1) and (2) of subsection (d) [amending 
sections 2055 and 2126 of this title] shall apply in the case of 
decedents dying after December 31, 1969.
    ``(B) Such amendments shall not apply in the case of property 
passing under the terms of a will executed on or before October 9, 
1969--
        ``(i) if the decedent dies before October 9, 1972, without 
    having republished the will after October 9, 1969, by codicil or 
    otherwise,
        ``(ii) if the decedent at no time after October 9, 1969, had the 
    right to change the portions of the will which pertain to the 
    passing of the property to, or for the use of, an organization 
    described in section 2055(a) [section 2055(a) of this title], or
        ``(iii) if the will is not republished by codicil or otherwise 
    before October 9, 1972, and the decedent is on such date and at all 
    times thereafter under a mental disability to republish the will by 
    codicil or otherwise.
    ``(C) Such amendments shall not apply in the case of property 
transferred in trust on or before October 9, 1969--
        ``(i) if the decedent dies before October 9, 1972, without 
    having amended after October 9, 1969, the instrument governing the 
    disposition of the property,
        ``(ii) if the property transferred was an irrevocable interest 
    to, or for the use of, an organization described in section 2055(a), 
    or
        ``(iii) if the instrument governing the disposition of the 
    property was not amended by the decedent before October 9, 1972, and 
    the decedent is on such date and at all times thereafter under a 
    mental disability to change the disposition of the property.
    ``(D) The amendment made by paragraph (3) of subsection (d) 
[amending section 2522 of this title] shall apply to gifts made after 
December 31, 1969, except that the amendments made to section 2522(c)(2) 
of the Internal Revenue Code of 1986 shall apply to gifts made after 
July 31, 1969.
    ``(E) The amendments made by paragraph (4) of subsection (d) 
[amending sections 2055, 2106, and 2522 of this title] shall apply to 
gifts and transfers made after December 31, 1969.
    ``(5) The amendment made by subsection (e) [enacting section 664 of 
this title] shall apply to transfers in trust made after July 31, 1969.
    ``(6) The amendments made by subsection (f) [amending section 1011 
of this title] shall apply with respect to sales made after December 19, 
1969.''
    Section 201(h)(2) of Pub. L. 91-172 provided that: ``The amendment 
made by this subsection [amending this section] shall apply to taxable 
years beginning after December 31, 1968.''


                    Effective Date of 1966 Amendment

    Amendment by Pub. L. 89-570 applicable to taxable years ending after 
Sept. 12, 1966, but only in respect of expenditures paid or incurred 
after such date, see section 3 of Pub. L. 89-570, set out as an 
Effective Date note under section 617 of this title.


                    Effective Date of 1964 Amendment

    Section 209(f) of Pub. L. 88-272, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
    ``(1) The amendments made by subsections (a), (b), and (c) [amending 
this section and sections 545 and 556 of this title], shall apply with 
respect to contributions which are paid in taxable years beginning after 
December 31, 1963.
    ``(2) The amendments made by subsection (d) [amending this section 
and section 381 of this title] shall apply to taxable years beginning 
after December 31, 1963, with respect to contributions which are paid 
(or treated as paid under section 170(a)(2) of the Internal Revenue Code 
of 1986 [formerly I.R.C. 1954]) in taxable years beginning after 
December 31, 1961.
    ``(3) The amendments made by subsection (e) [amending this section] 
shall apply to transfers of future interests made after December 31, 
1963, in taxable years ending after such date, except that such 
amendments shall not apply to any transfer of a future interest made 
before July 1, 1964, where--
        ``(A) the sole intervening interest or right is a 
    nontransferable life interest reserved by the donor, or
        ``(B) in the case of a joint gift by husband and wife, the sole 
    intervening interest or right is a nontransferable life interest 
    reserved by the donors which expires not later than the death of 
    whichever of such donors dies later.
For purposes of the exception contained in the preceding sentence, a 
right to make a transfer of the reserved life interest to the donee of 
the future interest shall not be treated as making a life interest 
transferable.''
    Amendment by section 231(b)(1) of Pub. L. 88-272 applicable to 
dispositions after Dec. 31, 1963, in taxable years ending after such 
date, see section 231(c) of Pub. L. 88-272, set out as an Effective Date 
note under section 1250 of this title.


                    Effective Date of 1962 Amendments

    Section 2(c) of Pub. L. 87-858 provided that: ``The amendments made 
by subsections (a) and (b) [amending this section] shall apply to 
taxable years beginning after December 31, 1960.''
    Amendment by Pub. L. 87-834 applicable to taxable years beginning 
after Dec. 31, 1962, see section 13(g) of Pub. L. 87-834, set out as an 
Effective Date note under section 1245 of this title.


                    Effective Date of 1960 Amendment

    Amendment by Pub. L. 86-779 applicable with respect to taxable years 
beginning after Dec. 31, 1959, see section 7(c) of Pub. L. 86-779, set 
out as a note under section 162 of this title.


                    Effective Date of 1958 Amendment

    Section 10(b) of Pub. L. 85-866 provided that: ``The amendment made 
by subsection (a) [amending this section] shall apply with respect to 
taxable years beginning after December 31, 1957.''
    Amendment by section 11 of Pub. L. 85-866 applicable to taxable 
years beginning after Dec. 31, 1953, and ending after Aug. 16, 1954, see 
section 1(c)(1) of Pub. L. 85-866, set out as a note under section 165 
of this title.
    Section 12(b) of Pub. L. 85-866 provided that: ``The amendment made 
by subsection (a) [amending this section] shall apply to taxable years 
ending after December 31, 1957, but only with respect to charitable 
contributions made after such date.''


                    Effective Date of 1956 Amendment

    Section 2 of act Aug. 7, 1956, provided that: ``The amendment made 
by this Act [amending this section] shall apply only with respect to 
taxable years beginning after December 31, 1955.''


                            Savings Provision

    For provisions that nothing in amendment by Pub. L. 101-508 be 
construed to affect treatment of certain transactions occurring, 
property acquired, or items of income, loss, deduction, or credit taken 
into account prior to Nov. 5, 1990, for purposes of determining 
liability for tax for periods ending after Nov. 5, 1990, see section 
11821(b) of Pub. L. 101-508, set out as a note under section 29 of this 
title.

                          Transfer of Functions

    United States International Development Cooperation Agency (other 
than Agency for International Development and Overseas Private 
Investment Corporation) abolished and functions and authorities 
transferred, see sections 6561 and 6562 of Title 22, Foreign Relations 
and Intercourse.


    Authority To Waive Appraisal Requirement for Certain Charitable 
                        Contributions of Property

    Section 6281 of Pub. L. 100-647 provided that: ``Notwithstanding 
paragraph (2) of section 155(a) of the Tax Reform Act of 1984 [section 
155(a)(2) of Pub. L. 98-369, set out below], the Secretary of the 
Treasury or his delegate may in the regulations prescribed pursuant to 
such section waive the requirement of a qualified appraisal in the case 
of a qualified contribution (within the meaning of section 170(e)(3)(A) 
of the 1986 Code) of property described in section 1221(1) [probably 
means section 1221(1) of the 1986 Code] with a claimed value in excess 
of $5,000.''


           Plan Amendments Not Required Until January 1, 1989

    For provisions directing that if any amendments made by subtitle A 
or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or title XVIII 
[Secs. 1800-1899A] of Pub. L. 99-514 require an amendment to any plan, 
such plan amendment shall not be required to be made before the first 
plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. 
L. 99-514, as amended, set out as a note under section 401 of this 
title.


   Treatment of Certain Amounts Paid to or for the Benefit of Certain 
                    Institutions of Higher Education

    Section 1608 of Pub. L. 99-514, which related to treatment of 
certain amounts paid to or for the benefit of certain institutions of 
higher education, was repealed by Pub. L. 100-647, title I, 
Sec. 1016(b), Nov. 10, 1988, 102 Stat. 3575.


         Substantiation of Charitable Contributions of Property

    Section 155(a) of Pub. L. 98-369, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
    ``(1) In general.--Not later than December 31, 1984, the Secretary 
shall prescribe regulations under section 170(a)(1) of the Internal 
Revenue Code of 1986 [formerly I.R.C. 1954], which require any 
individual, closely held corporation, or personal service corporation 
claiming a deduction under section 170 of such Code for a contribution 
described in paragraph (2)--
        ``(A) to obtain a qualified appraisal for the property 
    contributed,
        ``(B) to attach an appraisal summary to the return on which such 
    deduction is first claimed for such contribution, and
        ``(C) to include on such return such additional information 
    (including the cost basis and acquisition date of the contributed 
    property) as the Secretary may prescribe in such regulations.
Such regulations shall require the taxpayer to retain any qualified 
appraisal.
    ``(2) Contributions to which paragraph (1) applies.--For purposes of 
paragraph (1), a contribution is described in this paragraph--
        ``(A) if such contribution is of property (other than publicly 
    traded securities), and
        ``(B) if the claimed value of such property (plus the claimed 
    value of all similar items of property donated to 1 or more donees) 
    exceeds $5,000.
In the case of any property which is nonpublicly traded stock, 
subparagraph (B) shall be applied by substituting `$10,000' for 
`$5,000'.
    ``(3) Appraisal summary.--For purposes of this subsection, the 
appraisal summary shall be in such form and include such information as 
the Secretary prescribes by regulations. Such summary shall be signed by 
the qualified appraiser preparing the qualified appraisal and shall 
contain the TIN of such appraiser. Such summary shall be acknowledged by 
the donee of the property appraised in such manner as the Secretary 
prescribes in such regulations.
    ``(4) Qualified appraisal.--The term `qualified appraisal' means an 
appraisal prepared by a qualified appraiser which includes--
        ``(A) a description of the property appraised,
        ``(B) the fair market value of such property on the date of 
    contribution and the specific basis for the valuation,
        ``(C) a statement that such appraisal was prepared for income 
    tax purposes,
        ``(D) the qualifications of the qualified appraiser,
        ``(E) the signature and TIN of such appaiser, [sic] and
        ``(F) such additional information as the Secretary prescribes in 
    such regulations.
    ``(5) Qualified appraiser.--
        ``(A) In general.--For purposes of this subsection, the term 
    `qualified appraiser' means an appraiser qualified to make 
    appraisals of the type of property donated, who is not--
            ``(i) the taxpayer,
            ``(ii) a party to the transaction in which the taxpayer 
        acquired the property,
            ``(iii) the donee,
            ``(iv) any person employed by any of the foregoing persons 
        or related to any of the foregoing persons under section 267(b) 
        of the Internal Revenue Code of 1986, or
            ``(v) to the extent provided in such regulations, any person 
        whose relationship to the taxpayer would cause a reasonable 
        person to question the independence of such appraiser.
        ``(B) Appraisal fees.--For purposes of this subsection, an 
    appraisal shall not be treated as a qualified appraisal if all or 
    part of the fee paid for such appraisal is based on a percentage of 
    the appraised value of the property. The preceding sentence shall 
    not apply to fees based on a sliding scale that are paid to a 
    generally recognized association regulating appraisers.
    ``(6) Other definitions.--For purposes of this subsection--
        ``(A) Closely held corporation.--The term `closely held 
    corporation' means any corporation (other than an S corporation) 
    with respect to which the stock ownership requirement of paragraph 
    (2) of section 542(a) of such Code is met.
        ``(B) Personal service corporation.--The term `personal service 
    corporation' means any corporation (other than an S corporation) 
    which is a service organization (within the meaning of section 
    414(m)(3) of such Code).
        ``(C) Publicly traded securities.--The term `publicly traded 
    securities' means securities for which (as of the date of the 
    contribution) market quotations are readily available on an 
    established securities market.
        ``(D) Nonpublicly traded stock.--The term `nonpublicly traded 
    stock' means any stock of a corporation which is not a publicly 
    traded security.
        ``(E) The secretary.--The term `Secretary' means the Secretary 
    of the Treasury or his delegate.''


Charitable Lead Trusts and Charitable Remainder Trusts in Case of Income 
                             and Gift Taxes

    For includibility of provisions comparable to section 2055(e)(3) of 
this title in this section, see section 514(b) of Pub. L. 95-600, set 
out as a note under section 2055 of this title.


 Deduction of Contributions to Certain Organizations for Judicial Reform

    Section 29 of Pub. L. 87-834, as amended by Pub. L. 99-514, Sec. 2, 
Oct. 22, 1986, 100 Stat. 2095, provided that: ``For purposes of section 
170 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] 
(relating to deduction for charitable, etc., contributions and gifts), a 
contribution or gift made after December 31, 1961, with respect to a 
referendum occurring during the calendar year 1962 to or for the use of 
any nonprofit organization created and operated exclusively--
        ``(1) to consider proposals for the reorganization of the 
    judicial branch of the government of any State of the United States 
    or political subdivision of such State, and
        ``(2) to provide information, make recommendations, and seek 
    public support or opposition as to such proposals,
shall be treated as a charitable contribution if no part of the net 
earnings of such organization inures to the benefit of any private 
shareholder or individual. The provisions of the preceding sentence 
shall not apply to any organization which participates in, or intervenes 
in, any political campaign on behalf of any candidate for public 
office.''

                  Section Referred to in Other Sections

    This section is referred to in sections 21, 41, 67, 74, 79, 108, 
117, 119, 125, 151, 152, 162, 163, 381, 401, 410, 467, 501, 507, 508, 
509, 512, 513, 514, 535, 545, 556, 584, 642, 664, 674, 677, 702, 703, 
773, 805, 873, 882, 1011, 1255, 1257, 1361, 1398, 1441, 2031, 2032A, 
2055, 2056, 2057, 2503, 4041, 4221, 4253, 4911, 4940, 4941, 4942, 4944, 
4945, 4947, 4948, 5214, 6033, 6050L, 6113, 6115, 6664, 7428, 7611, 7701, 
7871 of this title; title 2 section 439a; title 11 section 548; title 12 
section 3015; title 15 sections 80a-3, 80a-3a; title 16 sections 410yy-
8, 1246, 1285; title 20 sections 954, 956; title 22 sections 3307, 4341, 
4603; title 23 section 133; title 29 sections 1002, 1052; title 35 
section 297; title 40 section 207c-2; title 42 sections 2996b, 10702.
