Bill > S317

This bill modifies the existing tax code to provide a special deduction for charitable contributions for individuals who do not itemize their tax deductions during the tax years 2026 and 2027. Specifically, taxpayers who take the standard deduction will be allowed to deduct up to one-third of their standard deduction amount for charitable contributions. The bill also makes technical amendments to eliminate certain tax penalties related to these charitable deductions. By allowing non-itemizing taxpayers to claim a partial charitable contribution deduction, the legislation aims to incentivize charitable giving among individuals who typically would not receive a tax benefit for their donations. The changes will take effect for taxable years beginning after December 31, 2025, giving taxpayers and tax professionals advance notice of the new provision. The modifications are intended to make charitable giving more financially attractive for taxpayers who use the standard deduction, which became more common after changes in tax law in recent years that increased the standard deduction amount.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/317/all-info