Wednesday, December 17, 2014

Around Thanksgiving, there was a flurry of congressional activity to attempt to make several key charitable giving tax provisions permanent and remove them from the cycle of expiration and retroactive reinstatement, including the IRA Charitable Rollover and enhanced deductions for donations of land conservation easements and food inventory. That bipartisan and bicameral work fell apart with a Presidential veto threat, but then on December 11, the U.S. House again attempted to pass these provisions on a permanent basis (H.R. 5806) on suspension. Although the bill received 275 votes in favor, eight more votes were needed for passage.

Without an agreement, Congress instead passed another short patch (H.R. 5771), which will enable IRA Charitable Rollover donations to occur in just the few weeks left of this year, up until December 31, whereupon it will expire again.

In the new Congress taking seat this January, members including Sen. John Thune (R-SD), have announced intention to sponsor new legislation early in the new year to continue work to make these tax provisions permanent policy, coupled also with comprehensive tax reform considerations, charitable tax deduction implications, and last date opportunities for year-end charitable donations.