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Medical Research Deductions Up To 80% of AGI
107th CONGRESS
1st Session
H.R. 744
IN THE HOUSE OF REPRESENTATIVES
February 27, 2001
Ms. DUNN (for herself and Mr. CARDIN) introduced the following
bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to encourage charitable contributions to public charities for use in medical research.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the 'Medical Research Investment Act of 2001'.
SEC. 2. INCREASE IN LIMITATION ON CHARITABLE DEDUCTION FOR CONTRIBUTIONS FOR MEDICAL RESEARCH.
(a) IN GENERAL. -- Paragraph (1) of section 170(b) of the Internal Revenue Code of 1986 (relating to percentage limitations) is amended by adding at the end the following new subparagraph:
"(G) SPECIAL LIMITATION WITH RESPECT TO CERTAIN CONTRIBUTIONS FOR MEDICAL RESEARCH. --
"(i) IN GENERAL. -- Any medical research contribution shall be allowed to the extent that the aggregate of such contributions does not exceed the lesser of --
"(I) 80 percent of the taxpayer's contribution base for any taxable year, or
"(II) the excess of 80 percent of the taxpayer's contribution base for the taxable year over the amount of charitable contributions allowable under subparagraphs (A) and (B) (determined without regard to subparagraph (C)).
"(ii) CARRYOVER. -- If the aggregate amount of contributions described in clause (i) exceeds the limitation of such clause, such excess shall be treated (in a manner consistent with the rules of subsection (d)(1)) as a medical research contribution in each of the 10 succeeding taxable years in order of time.
"(iii) TREATMENT OF CAPITAL GAIN PROPERTY. -- In the case of any medical research contribution of capital gain property (as defined in subparagraph (C)(iv)), subsection (e)(1) shall apply to such contribution.
"(iv) MEDICAL RESEARCH CONTRIBUTION. -- For purposes of this subparagraph, the term 'medical research contribution' means a charitable contribution --
"(I) to an organization described in clauses (ii), (iii), (v), or (vi) of subparagraph (A), and
"(II) which is designated for use in conducting medical research.
"(v) MEDICAL RESEARCH. -- For purposes of this subparagraph, the term 'medical research' has the meaning given such term under the regulations promulgated under subparagraph (A)(ii), as in effect on the date of the enactment of this subparagraph.".
(b) CONFORMING AMENDMENTS. --
(1) Section 170(b)(1)(A) of the Internal Revenue Code of 1986 is amended in the matter preceding clause (i) by inserting "(other than a medical research contribution)' after 'contribution'.
(2) Section 170(b)(1)(B) of such Code is amended by inserting 'or a medical research contribution' after 'applies'.
(3) Section 170(b)(1)(C)(i) of such Code is amended by striking 'subparagraph (D)' and inserting 'subparagraph (D) or (G)'.
(4) Section 170(b)(1)(D)(i) of such Code is amended --
(A) in the matter preceding subclause (I), by inserting 'or a medical research contribution' after 'applies', and
(B) in the second sentence, by inserting "(other than medical research contributions)' before the period.
(c) EFFECTIVE DATE. -- The amendments made by this section shall apply --
(1) to contributions made in taxable years beginning after December 31, 2001, and
(2) to contributions made on or before December 31, 2001, but only to the extent that a deduction would be allowed under section 170 of the Internal Revenue Code of 1986 for taxable years beginning after December 31, 1999, had section 170(b)(1)(G) of such Code (as added by this section) applied to such contributions when made.
SEC. 3. TREATMENT OF CERTAIN INCENTIVE STOCK OPTIONS.
(a) AMT ADJUSTMENTS. -- Section 56(b)(3) of the Internal Revenue Code of 1986 (relating to treatment of incentive stock options) is amended --
(1) by striking 'Section 421' and inserting the following:
"(A) IN GENERAL. -- Except as provided in subparagraph (B), section 421', and
(2) by adding at the end the following new subparagraph:
"(B) EXCEPTION FOR CERTAIN MEDICAL RESEARCH STOCK. --
"(i) IN GENERAL. -- This paragraph shall not apply in the case of a medical research stock transfer of stock acquired pursuant to the exercise of an incentive stock option occurring within the same taxable year as the exercise.
"(ii) MEDICAL RESEARCH STOCK TRANSFER. -- For purposes of clause (i), the term 'medical research stock transfer' means a transfer --
"(I) of stock which is traded on an established securities market, and
"(II) which is a medical research contribution (as defined in section 170(b)(1)(G)(iv))."
(b) NONRECOGNITION OF CERTAIN INCENTIVE STOCK OPTIONS. -- Section 422(c) of the Internal Revenue Code of 1986 (relating to special rules) is amended by adding at the end the following new paragraph:
"(8) MEDICAL RESEARCH CONTRIBUTIONS. -- For purposes of this section and section 421, the transfer of a share of stock which is a medical research stock transfer (as defined in section 56(b)(3)(B)) shall be treated as meeting the requirements of subsection (a)(1).".
(c) EFFECTIVE DATE. -- The amendments made by this section shall apply to transfers of stock made after the date of the enactment of this Act.
1st Session
H.R. 744
IN THE HOUSE OF REPRESENTATIVES
February 27, 2001
Ms. DUNN (for herself and Mr. CARDIN) introduced the following
bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to encourage charitable contributions to public charities for use in medical research.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the 'Medical Research Investment Act of 2001'.
SEC. 2. INCREASE IN LIMITATION ON CHARITABLE DEDUCTION FOR CONTRIBUTIONS FOR MEDICAL RESEARCH.
(a) IN GENERAL. -- Paragraph (1) of section 170(b) of the Internal Revenue Code of 1986 (relating to percentage limitations) is amended by adding at the end the following new subparagraph:
"(G) SPECIAL LIMITATION WITH RESPECT TO CERTAIN CONTRIBUTIONS FOR MEDICAL RESEARCH. --
"(i) IN GENERAL. -- Any medical research contribution shall be allowed to the extent that the aggregate of such contributions does not exceed the lesser of --
"(I) 80 percent of the taxpayer's contribution base for any taxable year, or
"(II) the excess of 80 percent of the taxpayer's contribution base for the taxable year over the amount of charitable contributions allowable under subparagraphs (A) and (B) (determined without regard to subparagraph (C)).
"(ii) CARRYOVER. -- If the aggregate amount of contributions described in clause (i) exceeds the limitation of such clause, such excess shall be treated (in a manner consistent with the rules of subsection (d)(1)) as a medical research contribution in each of the 10 succeeding taxable years in order of time.
"(iii) TREATMENT OF CAPITAL GAIN PROPERTY. -- In the case of any medical research contribution of capital gain property (as defined in subparagraph (C)(iv)), subsection (e)(1) shall apply to such contribution.
"(iv) MEDICAL RESEARCH CONTRIBUTION. -- For purposes of this subparagraph, the term 'medical research contribution' means a charitable contribution --
"(I) to an organization described in clauses (ii), (iii), (v), or (vi) of subparagraph (A), and
"(II) which is designated for use in conducting medical research.
"(v) MEDICAL RESEARCH. -- For purposes of this subparagraph, the term 'medical research' has the meaning given such term under the regulations promulgated under subparagraph (A)(ii), as in effect on the date of the enactment of this subparagraph.".
(b) CONFORMING AMENDMENTS. --
(1) Section 170(b)(1)(A) of the Internal Revenue Code of 1986 is amended in the matter preceding clause (i) by inserting "(other than a medical research contribution)' after 'contribution'.
(2) Section 170(b)(1)(B) of such Code is amended by inserting 'or a medical research contribution' after 'applies'.
(3) Section 170(b)(1)(C)(i) of such Code is amended by striking 'subparagraph (D)' and inserting 'subparagraph (D) or (G)'.
(4) Section 170(b)(1)(D)(i) of such Code is amended --
(A) in the matter preceding subclause (I), by inserting 'or a medical research contribution' after 'applies', and
(B) in the second sentence, by inserting "(other than medical research contributions)' before the period.
(c) EFFECTIVE DATE. -- The amendments made by this section shall apply --
(1) to contributions made in taxable years beginning after December 31, 2001, and
(2) to contributions made on or before December 31, 2001, but only to the extent that a deduction would be allowed under section 170 of the Internal Revenue Code of 1986 for taxable years beginning after December 31, 1999, had section 170(b)(1)(G) of such Code (as added by this section) applied to such contributions when made.
SEC. 3. TREATMENT OF CERTAIN INCENTIVE STOCK OPTIONS.
(a) AMT ADJUSTMENTS. -- Section 56(b)(3) of the Internal Revenue Code of 1986 (relating to treatment of incentive stock options) is amended --
(1) by striking 'Section 421' and inserting the following:
"(A) IN GENERAL. -- Except as provided in subparagraph (B), section 421', and
(2) by adding at the end the following new subparagraph:
"(B) EXCEPTION FOR CERTAIN MEDICAL RESEARCH STOCK. --
"(i) IN GENERAL. -- This paragraph shall not apply in the case of a medical research stock transfer of stock acquired pursuant to the exercise of an incentive stock option occurring within the same taxable year as the exercise.
"(ii) MEDICAL RESEARCH STOCK TRANSFER. -- For purposes of clause (i), the term 'medical research stock transfer' means a transfer --
"(I) of stock which is traded on an established securities market, and
"(II) which is a medical research contribution (as defined in section 170(b)(1)(G)(iv))."
(b) NONRECOGNITION OF CERTAIN INCENTIVE STOCK OPTIONS. -- Section 422(c) of the Internal Revenue Code of 1986 (relating to special rules) is amended by adding at the end the following new paragraph:
"(8) MEDICAL RESEARCH CONTRIBUTIONS. -- For purposes of this section and section 421, the transfer of a share of stock which is a medical research stock transfer (as defined in section 56(b)(3)(B)) shall be treated as meeting the requirements of subsection (a)(1).".
(c) EFFECTIVE DATE. -- The amendments made by this section shall apply to transfers of stock made after the date of the enactment of this Act.
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