Representative Mike Thompson's Bill to Provide Expedited Tax Relief for Donations to Typhoon Haiyan Recovery Efforts Passes House
Press Release
U.S. Rep. Mike Thompson's (D-CA-5) bipartisan Philippines Charitable Giving Assistance Act passed the U.S. House of Representatives unanimously today. The legislation, H.R. 3771 provides expedited tax relief for Americans making charitable donations in support of Typhoon Haiyan recovery efforts in the Philippines. Under the legislation, individuals who donate to the relief efforts in the Philippines between the enactment of this legislation and April 15, 2014 would be able to take a charitable deduction for those donations when they file their 2013 tax returns. This bill now goes to the President to be signed into law.
"I am proud that this bill has passed the House. Now we need to get it onto the President's desk so that people are encouraged to donate to the relief efforts," said Rep. Mike Thompson (CA-5). "A lot of people in our communities have family and friends who were impacted by the typhoon. Passing this bill will help make sure aid keeps coming during these early stages of a long-term rebuilding effort."
While there was an immediate outpouring of donations and other assistance following Typhoon Haiyan in November 2013, the length of the rebuilding process means contributions are still needed now and in the months ahead. This bill is intended to spur donations to charitable organizations by allowing taxpayers who donate to the relief efforts before April 15th, 2014 to receive tax benefits nearly a year faster than usual.
As written, the tax code provides a delayed incentive for making charitable contributions. Taxpayers can claim a tax deduction for contributions they make to charities, but they receive the tax incentive many months later after they file their tax returns the following year.
The Philippines Charitable Giving Assistance Act eliminates this delay by allowing taxpayers who donate to the relief efforts in the Philippines between the enactment of this legislation and April 15, 2014 to take the charitable deduction when they file their 2013 tax returns.
H.R. 3771 was co-authored by Reps. Eric Swalwell (D-CA-15), Darrell Issa (R-CA-49) and Joe Heck (R-NV-3). A Senate companion bill, S. 1821, was introduced by Senators Mazie K. Hirono (D-HI) and Dean Heller (R-NV), and passed by the Senate on March 6, 2014.
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