Charitable Act

Senate Bill

S. 317

119th Congress

Charitable Act

In Committee

Introduced:Jan 29, 2025

Primary Sponsor

James Lankford

R - OK

Cosponsors

23

Quick Stats

Policy Area

Taxation

Summary

The Charitable Act allows taxpayers who take the standard deduction to also claim a charitable contribution deduction of up to one-third of their standard deduction in 2026 and 2027. It also eliminates the penalty for overstating charitable contributions.

Latest Action

Read twice and referred to the Committee on Finance.

Introduced1/29/2025

StatusRead twice and referred to the Committee on Finance.

ChamberSenate

Data from Congress.gov

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Vote Prediction

Charitable Act

The Charitable Act allows taxpayers who take the standard deduction to also claim a charitable contribution deduction of up to one-third of their standard deduction in 2026 and 2027. It also eliminates the penalty for overstating charitable contributions.

Community Breakdown

Pass

0%

Fail

0%

0 predictions

The Charitable Act allows taxpayers who take the standard deduction to also claim a charitable contribution deduction of up to one-third of their standard deduction in 2026 and 2027. It also eliminates the penalty for overstating charitable contributions.

Bill Number: 317
Introduced: 1/29/2025
Status: Read twice and referred to the Committee on Finance.
Policy Area: Taxation

Data from Congress.gov

AI-generated summary

Fact Sheet

Title: Charitable Act
Bill Number: 317
Sponsor: No sponsor
Status: Read twice and referred to the Committee on Finance.
Introduced: 1/29/2025
Summary: The Charitable Act allows taxpayers who take the standard deduction to also claim a charitable contribution deduction of up to one-third of their standard deduction in 2026 and 2027. It also eliminates the penalty for overstating charitable contributions.

Data from Congress.gov

AI Summary

Plain-English explanation of this bill

The Charitable Act allows taxpayers who take the standard deduction to also claim a charitable contribution deduction of up to one-third of their standard deduction in 2026 and 2027. It also eliminates the penalty for overstating charitable contributions.

Last updated: 1/5/2026

Official Summary

Congressional Research Service summary

Charitable ActThis bill allows an individual taxpayer who does not itemize their tax deductions to claim a tax deduction for charitable contributions and eliminates the tax penalty for overstating charitable contributions. (Some limitations apply).Under the bill, for tax years beginning in 2026 or 2027, an individual taxpayer who does not itemize their tax deductions may deduct charitable contributions of up to one-third of the standard deduction allowed to such individual. (Under current law, an individual taxpayer generally must itemize their tax deductions to deduct charitable contributions.)The bill also eliminates the tax penalty for an underpayment of taxes attributable to overstated charitable contributions by taxpayers who do not itemize deductions. (Under current law, taxpayers who claim a deduction under this bill may be assessed a tax penalty in the amount of 50% of the portion of an understatement of tax liability attributable to overstated charitable contributions.)

Key Points

Main provisions of the bill

Allows charitable deduction without itemizing
Caps at one-third of standard deduction
Applies to tax years 2026 and 2027
Eliminates overstatement penalty
Encourages charitable giving for all taxpayers

How This Impacts Americans

Potential effects on citizens and communities

Non-itemizing taxpayers would have incentive to make charitable donations. Charities could see increased donations from middle-income donors. The tax benefit would be temporary for two years unless extended.