Bill > HR4454

This bill, titled the Permanent S Corporation Charitable Contributions Act of 2014, aims to make permanent a tax rule that affects S corporations, which are a type of business that passes its income, losses, deductions, and credits through to its shareholders for federal tax purposes. Specifically, the bill amends Section 1367(a)(2) of the Internal Revenue Code of 1986 by removing a temporary provision. This change will permanently require that when an S corporation makes a charitable contribution of property that is tax-deductible, the basis, which is the shareholder's investment in the stock for tax purposes, must be decreased. This rule applies to contributions made in taxable years beginning after December 31, 2013.