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House Committee Advances Permanent Extension of IRA Charitable Rollover, Other Charity Provisions

Posted by National Association of Charitable Gift Planners on May 29, 2014 10:29:50 AM
The Partnership for Philanthropic Planning is pleased to announce that earlier today the House Ways & Means Committee approved legislation that would provide a retroactive and permanent extension of the current-law IRA Charitable Rollover. Congress has previously extended the Rollover three times since its original enactment in 2006, though the current provision expired at the end of 2013. H.R. 4619 would end any uncertainly around the temporary provision and make the Rollover a permanent part of the tax code once and for all.
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H.R. 4619 was advanced by the Committee in a party line vote of 23-14 and is estimated to cost $8.4 billion. The bill was sponsored by Aaron Schock (R-IL) and Earl Blumenauer (D-OR), although an amendment was offered in Committee by Blumenauer, the Democrat co-sponsor, that would have swapped in a two-year extension (rather than make the provision permanent) and offset the full cost of the bill by tax increases on certain oil companies. The amendment, however, was tabled on a voice vote.
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In addition to approval of H.R. 4619, the Ways & Means Committee acted today on a number of other significant charity-related provisions. On another party line vote, the Committee approved legislation ( H.R. 3134) that would permanently allow individuals to deduct their charitable contributions of the previous tax year up until the  April 15th filing deadline. The Committee also advanced legislation ( H.R. 4691) that would permanently modify the excise tax on the investment income of private foundations. This $1.9 billion proposal would replace the current two-tiered tax on charities’ investment income with a single 1 percent excise tax.
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PPP will provide a more complete summary at a later date and will continue to monitor the progress of this legislation in Congress over the coming months.
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