H.R. XX: To accelerate the income tax benefits for charitable cash contributions for the relief of victims of the earthquake in Chile

H.R. XX

To accelerate the income tax benefits for charitable cash contributions for the relief of victims of the earthquake in Chile

Sponsor
Rep. Sander M. Levin

Date
March 10, 2010 (111th Congress, 2nd Session)

Staff Contact
Communications

Floor Situation

H.R. __ is being considered on the floor on Wednesday, March 10, 2010, under a suspension of the rules, requiring a two-thirds majority vote for passage. This legislation will likely be introduced by Rep. Sander Levin (D-MI) on March 9 or 10, 2010, and referred to the Ways and Means Committee.

Bill Summary

H.R. __ would allow charitable donations for the victims to the earthquake in Chile made this year, to be treated as if such contributions were made in 2009, rather than in 2010.

Background

On February 27, 2010, an enormous 8.8 magnitude earthquake struck the South American nation of Chile. To date, there have been 528 confirmed deaths as a result of the earthquake and millions of Chileans are now homeless. According to USAID, the United States has contributed $10.6 million to humanitarian assistances to Chile. In addition, "Two U.S. Department of Defense (DoD) C-130 cargo planes, each capable of carrying up to 42,000 pounds of cargo, landed in Chile on March 6. The aircraft began transporting humanitarian cargo from Santiago to disaster-affected areas on March 7." This bill is meant to encourage more donations for the people of Chile by accelerating the tax benefit for certain charitable cash contributions made for the victims of the recent earthquake in Chile. According to the Ways and Means Committee, a similar provision, passed in the immediate aftermath of the Indian Ocean Tsunami in 2005, reduced revenue by $2 million over ten years. In addition, similar legislation was passed to provide for relief following the devastating earthquake in Haiti (H.R.4462) was passed in the House by voice vote on January 20, 2010, and signed into law two days later.

Cost

A CBO cost estimate of the underlying legislation was not available as of press time.