Universal Charitable Credit Act



To amend the Internal Revenue Code of 1986 to establish a nonrefundable universal charitable credit.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,


This Act may be cited as the Universal Charitable Credit Act of 2017.


(a) IN GENERAL, Subpart A of part IV of subchapter A of chapter 1 of subtitle A of the Internal Revenue Code of 1986 is amended by adding after section 25Dthe following new section:


(a) IN GENERAL, unless the context otherwise requires:

“Qualified charitable organizations” means charitable organizations that are:

(1) exempt from federal income taxation under section 501(c)(3) of the internal revenue code, incorporated in the United States of America, and

(2) not under suspension per section 501(p) of the internal revenue code, or revocation per the Internal Revenue Bulletin at the time of the contribution.

(b) A credit is allowed against the taxes imposed by this title for voluntary cash contributions by the taxpayer or on the taxpayer’s behalf during the taxable year to qualified charitable organizations not to exceed:

(1) Five hundred dollars in any taxable year for a taxpayer who files as: single individual, head of household or married filing separately.

(2) One thousand dollars in any taxable year for a married couple filing a joint return.

(c) Taxpayers taking a credit authorized by this section shall provide the names of the qualified charitable organizations and the amount of the contributions on forms provided by the Internal Revenue Service.

(d) Notwithstanding any other requirements, the Internal Revenue Service shall compile and make available to the public a list of qualified charitable organizations.

(e) Taxpayers choosing to make voluntary cash contributions through an umbrella charitable organization that collects donations on behalf of member charities shall designate that the donation be directed only to member charitable organizations that would qualify under this section on a stand-alone basis.

(f) Carryover.

(1) The allowable credit shall only be applied against the qualified tax liability for the year in which it is claimed, but shall not exceed the total liability of the taxpayer for that year.”

(b) The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal  Revenue Code of 1986, as amended by this Act, is amended by inserting after the item relating to section 25D the following new item:

‘‘Sec. 25E. Universal Charitable Tax Credit.’’.

(8) Retroactivity.

This act applies retroactively to taxable years beginning from and after December 31, 2016.