Charitable Act

Charitable Act

This bill allows individual taxpayers who do not otherwise itemize their tax deductions a deduction in taxable years beginning in 2023 or 2024 for charitable contributions. The deduction is limited to one-third of the standard deduction allowed to such taxpayers.

Bill 118 hr 3435, also known as the Charitable Act, is a piece of legislation currently being considered by the US Congress. The main purpose of this bill is to provide tax incentives for charitable giving and to promote philanthropy in the United States.

The Charitable Act includes several key provisions. One of the main provisions is the expansion of the charitable deduction for individuals and corporations. This would allow taxpayers to deduct a larger portion of their charitable contributions from their taxable income, incentivizing more people to donate to charitable organizations.

Another important provision of the bill is the creation of a new tax credit for low and middle-income individuals who make charitable contributions. This credit would provide a financial incentive for individuals who may not have as much disposable income to donate to charity. Additionally, the Charitable Act includes measures to increase transparency and accountability in the charitable sector. This includes requirements for charities to disclose more information about their finances and operations, as well as measures to crack down on fraudulent or abusive practices within the sector. Overall, the Charitable Act aims to encourage more Americans to give to charitable causes and to ensure that charitable organizations operate in a transparent and accountable manner. Supporters of the bill argue that it will help to strengthen the nonprofit sector and increase the impact of charitable giving in the United States.