U.S. Code Section 170 on Charitable contributions and Gifts

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TITLE 26 > Subtitle A > CHAPTER 1 > Subchapter B > PART VI > § 170
§ 170. Charitable, etc., contributions and gifts

(a) Allowance of deduction
(1) General rule
There shall be allowed as a deduction any charitable contribution (as defined in
subsection (c)) payment of which is made within the taxable year. A charitable
contribution shall be allowable as a deduction only if verified under regulations
prescribed by the Secretary.
(2) Corporations on accrual basis
In the case of a corporation reporting its taxable income on the accrual basis, if —
(A) the board of directors authorizes a charitable contribution during any taxable year,
and
(B) payment of such contribution is made after the close of such taxable year and on or
before the 15th day of the third month following the close of such taxable year,
then the taxpayer may elect to treat such contribution as paid during such taxable year.
The election may be made only at the time of the filing of the return for such taxable
year, and shall be signified in such manner as the Secretary shall by regulations
prescribe.
(3) Future interests in tangible personal property
For purposes of this section, payment of a charitable contribution which consists of a
future interest in tangible personal property shall be treated as made only when all
intervening interests in, and rights to the actual possession or enjoyment of, the
property have expired or are held by persons other than the taxpayer or those standing
in a relationship t o the taxpayer described in section 267 (b) or 707 (b) . For purposes
of the preceding sentence, a fixture which is intended to be severed from the real
property shall be treated as tangible personal property.
(b) Percentage limitations
(1) Individuals
In the case of an individual, the deduction provided in subsection (a) shall be limited as
provided in the succeeding subparagraphs.
(A) General rule
Any charitable contribution to —
(i) a church or a convention or association of churches,
(ii) an educational organization which normally maintains a regular faculty and
curriculum and normally has a regularly enrolled body of pupils or students in
attendance at the place where its educational activities are regularly carried on,
(iii) an organization the principal purpose or functions of which are the providing of
medical or hospital care or medical education or medical research, if the organization is
a hospital, or if the organization is a medical research organization directly engaged in

the continuous active conduct of medical research in conjunction with a hospital, and
during the calendar year in which the contribution is made such organization is
committed to spend such contributions for such research before January 1 of the fifth
calendar year which begins after the date such contribution is made,
(iv) an organization which normally receives a substantial part of its support (exclusive
of income received in the exercise or performance by such organization of its
charitable, educational, or other purpose or function constituting the basis for its
exemption under section 501 (a) ) from the United States or any State or political
subdivision thereof or from direct or indirect contributions from the general public, and
which is organized and operated exclusively to receive, hold, invest, and administer
property and to make expenditures to or for the benefit of a college or university which
is an organization referred to in clause (ii) of this subparagraph and which is an agency
or instrumentality of a State or political subdivision thereof, or which is owned o r
operated by a State or political subdivision thereof or by an agency or instrumentality
of one or more States or political subdivisions,
(v) a governmental unit referred to in subsection (c)(1),
(vi) an organization referred to in subsection (c)(2) which normally receives a
substantial part of its support (exclusive of income received in the exercise or
performance by such organization of its charitable, educational, or other purpose or
function constituting the basis for its exemption under section 501 (a) ) from a
governmental unit referred to in subsection (c)(1) or from direct or indirect
contributions from the general public,
(vii) a private foundation described in subparagraph (F), or
(viii) an organization described in section 509 (a)(2) or (3),
shall be allowed to the extent that the aggregate of such contributions does not exceed
50 percent of the taxpayer’s cont ribution base for the taxable year.
(B) Other contributions
Any charitable contribution other than a charitable contribution to which subparagraph
(A) applies shall be allowed to the extent that the aggregate of such contributions does
not exceed the lesser of—
(i) 30 percent of the taxpayer’s contribution base for the taxable year, or
(ii) the excess of 50 percent of the taxpayer’s contribution base for the taxable year
over the amount of charitable contributions allowable under subparagraph (A)
(determine d without regard to subparagraph (C)).
If the aggregate of such contributions exceeds the limitation of the preceding sentence,
such excess shall be treated (in a manner consistent with the rules of subsection
(d)(1)) as a charitable contribution (to which subparagraph (A) does not apply) in each
of the 5 succeeding taxable years in order of time.
(C) Special limitation with respect to contributions described in subparagraph
(A) of certain capital gain property
(i) In the case of charitable contributions de scribed in subparagraph (A) of capital gain
property to which subsection (e)(1)(B) does not apply, the total amount of
contributions of such property which may be taken into account under subsection (a)
for any taxable year shall not exceed 30 percent of t he taxpayer’s contribution base for
such year. For purposes of this subsection, contributions of capital gain property to
which this subparagraph applies shall be taken into account after all other charitable
contributions (other than charitable contributions to which subparagraph (D) applies).
(ii) If charitable contributions described in subparagraph (A) of capital gain property to
which clause (i) applies exceeds 30 percent of the taxpayer’s contribution base for any
taxable year, such excess shall be treated, in a manner consistent with the rules of

subsection (d)(1), as a charitable contribution of capital gain property to which clause
(i) applies in each of the 5 succeeding taxable years in order of time.
(iii) At the election of the taxpayer (made at such time and in such manner as the
Secretar y prescribes by regulations), subsection (e)(1) shall apply to all contributions of
capital gain property (to which subsection (e)(1)(B) does not otherwise apply) made by
the taxpayer during the taxable year. If such an election is made, clauses (i) and (i i)
shall not apply to contributions of capital gain property made during the taxable year,
and, in applying subsection (d)(1) for such taxable year with respect to contributions of
capital gain property made in any prior contribution year for which an election was not
made under this clause, such contributions shall be reduced as if subsection (e)(1) had
applied to such contributions in the year in which made.
(iv) For purposes of this paragraph, the term “capital gain property” means, with
respect to any contribution, any capital asset the sale of which at its fair market value
at the time of the contribution would have resulted in gain which would have been long –
term capital gain. For purposes of the preceding sentence, any property which is
property used in the trade or business (as defined in section 1231 (b) ) shall be treated
as a capital asset.
(D) Special limitation with respect to contributions of capital gain property to
organizations not described in subparagraph (A)
(i) In general In the case of charitable contributions (other than charitable
contributions to which subparagraph (A) applies) of capital gain property, the total
amount of such contributions of such property taken into account under subsection (a)
for any taxable year shall not exceed the lesser of —
(I) 20 percent of the taxpayer’s contribution base for the taxable year, or
(II) the excess of 30 percent of the taxpayer’s contribution base for the taxable year
over the amount of the contributions of capital gain property to which subparagraph (C)
applies.
For purposes of this subsection, contributions of capital gain property to which this
subparagraph applies shall be taken into account after all other charitable contributions.
(ii) Carryover If the aggregate amount of contributions described in clause (i) exceeds
the limitation of clause (i), s uch excess shall be treated (in a manner consistent with
the rules of subsection (d)(1)) as a charitable contribution of capital gain property to
which clause (i) applies in each of the 5 succeeding taxable years in order of time.
(E) Contributions of qual ified conservation contributions
(i) In general Any qualified conservation contribution (as defined in subsection (h)(1))
shall be allowed to the extent the aggregate of such contributions does not exceed the
excess of 50 percent of the taxpayer’s contribu tion base over the amount of all other
charitable contributions allowable under this paragraph.
(ii) Carryover If the aggregate amount of contributions described in clause (i) exceeds
the limitation of clause (i), such excess shall be treated (in a manner consistent with
the rules of subsection (d)(1)) as a charitable contribution to which clause (i) applies in
each of the 15 succeeding years in order of time.
(iii) Coordination with other subparagraphs For purposes of applying this subsection
and subsection (d)(1), contributions described in clause (i) shall not be treated as
described in subparagraph (A), (B), (C), or (D) and such subparagraphs shall apply
without regard to such contributions.
(iv) Special rule for contribution of property used in agriculture or livestock production
(I) In general If the individual is a qualified farmer or rancher for the taxable year for
which the contribution is made, clause (i) shall be applied by substituting “100 perce nt”
for “50 percent”.

(II) Exception Subclause (I) shall not apply to any contribution of property made after
the date of the enactment of this subparagraph which is used in agriculture or livestock
production (or available for such production) unless such contribution is subject to a
restriction that such property remain available for such production. This subparagraph
shall be applied separately with respect to property to which subclause (I) does not
apply by reason of the preceding sentence prior to its application to property to which
subclause (I) does apply.
(v) Definition For purposes of clause (iv), the term “qualified farmer or rancher” means
a taxpayer whose gross income from the trade or business of farming (within the
meaning of section 2032A (e)(5) ) is greater than 50 percent of the taxpayer’s gross
income for the taxable year.
(vi) Termination This subparagraph shall not apply to any contribution made in taxable
years beginning after December 31, 2009.
(F) Certain private foundations
The private foundations referred to in subparagraph (A)(vii) and subsection (e)(1)(B)
are—
(i) a private operating foundation (as defined in section 4942 (j)(3) ),
(ii) any other private foundation (as defined in section 509 (a) ) which, not later than
the 15th day of the third month after the close of the foundation’s taxable year in which
contributions are received, makes qualifying distributions (as defined in
section 4942 (g) , without regard to paragraph (3) thereof), which are treated, after the
application of section 4942 (g)(3) , as distributions out of corpus (in accordance with
section 4942 (h) ) in an amount equal to 100 percent of such contributions, and with
respect to which the taxpayer obtains adequate records or other sufficient evidence
from the foundation showing that the fou ndation made such qualifying distributions,
and
(iii) a private foundation all of the contributions to which are pooled in a common fund
and which would be described in section 509 (a)(3) but for the right of any substantial
contributor (hereafter in this clause called “donor”) or his spouse to designate annually
the recipients, from among organizations described in paragraph (1) of section 509(a),
of the income attributable to the donor’s contribution to the fund and to direct (by deed
or by will) the payment, to an organization described in such paragraph (1), of the
corpus in the common fund attributable to the donor’s contribution; but this clause shall
apply only if all of the income of the common fund is required to be (and is) distributed
to one or more organizations described in such paragraph (1) not later than the 15th
day of the third month after the close of the taxable year in which the income is
realized by the fund and only if all of the corpus attributable to any donor’s contribution
to the fund is required to be (and is) distributed to one or more of such organizations
not later than one year after his death or after the death of his surviving spouse if she
has the right to designate the recipients of such corpus.
(G) Contribution base defined
For purposes of this section, the term “contribution base” means adjusted gross income
(computed without regard to any net operating loss carryback to the taxable year under
section 172 ).
(2) Corporations
In the case of a corporation —
(A) In general
The total deductions under subsection (a) for any taxable year (other than for
contributions to which subparagraph (B) applies) shall not exceed 10 percent of the
taxpayer’s taxable income.

(B) Qualified conservation contri butions by certain corporate farmers and
ranchers
(i) In general Any qualified conservation contribution (as defined in subsection
(h)(1)) —
(I) which is made by a corporation which, for the taxable year during which the
contribution is made, is a qualified farmer or rancher (as defined in paragraph
(1)(E)(v)) and the stock of which is not readily tradable on an established securities
market at any time during such year, and
(II) which, in the case of contributions made after the date of the enactment of thi s
subparagraph, is a contribution of property which is used in agriculture or livestock
production (or available for such production) and which is subject to a restriction that
such property remain available for such production,
shall be allowed to the extent the aggregate of such contributions does not exceed the
excess of the taxpayer’s taxable income over the amount of charitable contributions
allowable under subparagraph (A).
(ii) Carryover If the aggregate amount of contributions described in clause ( i) exceeds
the limitation of clause (i), such excess shall be treated (in a manner consistent with
the rules of subsection (d)(2)) as a charitable contribution to which clause (i) applies in
each of the 15 succeeding years in order of time.
(iii) Terminati on This subparagraph shall not apply to any contribution made in taxable
years beginning after December 31, 2009.
(C) Taxable income
For purposes of this paragraph, taxable income shall be computed without regard to —
(i) this section,
(ii) part VIII (excep t section 248 ),
(iii) any net operating loss carryback to the taxable year under section 172 ,
(iv) section 199 , and
(v) any capital loss carryback to the taxable year under section 1212 (a)(1) .
(3) Temporary suspension of limitations on charitable contributions
In the case of a qualified farmer or rancher (as defined in paragraph (1)(E)(v)), any
charitable contribution of food—
(A) to which subsection (e)(3)(C) applies (without regard to clause (ii) thereof), and
(B) which is made during the period beginning on the date of the enactment of this
paragraph and before January 1, 2009,
shall be treated for purposes of paragraph (1)(E) or (2)(B), whichever is applicable, as
if it were a qualified conservation contribution which is made by a qua lified farmer or
rancher and which otherwise meets the requirements of such paragraph.
(c) Charitable contribution defined
For purposes of this section, the term “charitable contribution” means a contribution or
gift to or for the use of—
(1) A State, a po ssession of the United States, or any political subdivision of any of the
foregoing, or the United States or the District of Columbia, but only if the contribution
or gift is made for exclusively public purposes.
(2) A corporation, trust, or community ches t, fund, or foundation—
(A) created or organized in the United States or in any possession thereof, or under the
law of the United States, any State, the District of Columbia, or any possession of the
United States;
(B) organized and operated exclusively f or religious, charitable, scientific, literary, or
educational purposes, or to foster national or international amateur sports competition

(but only if no part of its activities involve the provision of athletic facilities or
equipment), or for the prevention of cruelty to children or animals;
(C) no part of the net earnings of which inures to the benefit of any private shareholder
or individual; and
(D) which is not disqualified for tax exemption under section 501 (c)(3) by reason of
attempting to influence legislation, and which does not participate in, or inte rvene in
(including the publishing or distributing of statements), any political campaign on behalf
of (or in opposition to) any candidate for public office.
A contribution or gift by a corporation to a trust, chest, fund, or foundation shall be
deductible by reason of this paragraph only if it is to be used within the United States
or any of its possessions exclusively for purposes specified in subparagraph (B). Rules
similar to the rules of section 501 (j) shall apply for purposes of this paragraph.
(3) A post or organization of war veterans, or an auxiliary unit or society of, or trust or
foundation for, any such post or organization—
(A) organized in the United States or any of its possessions, and
(B) no part of the net earnings of which inures to the benefit of any private shareholder
or individual.
(4) In the case of a contribution or gift by an individual, a domestic fraternal society,
order, or association, operating under the lodge system, but only if such contribution or
gift is to be used exclusively for religious, charitable, scientific, literary, or educ ational
purposes, or for the prevention of cruelty to children or animals.
(5) A cemetery company owned and operated exclusively for the benefit of its
members, or any corporation chartered solely for burial purposes as a cemetery
corporation and not permi tted by its charter to engage in any business not necessarily
incident to that purpose, if such company or corporation is not operated for profit and
no part of the net earnings of such company or corporation inures to the benefit of any
private shareholder or individual.
For purposes of this section, the term “charitable contribution” also means an amount
treated under subsection (g) as paid for the use of an organization described in
paragraph (2), (3), or (4).
(d) Carryovers of excess contributions
(1) Individuals
(A) In general
In the case of an individual, if the amount of charitable contributions described in
subsection (b)(1)(A) payment of which is made within a taxable year (hereinafter in
this paragraph referred to as the “contribution year”) exceed s 50 percent of the
taxpayer’s contribution base for such year, such excess shall be treated as a charitable
contribution described in subsection (b)(1)(A) paid in each of the 5 succeeding taxable
years in order of time, but, with respect to any such succeeding taxable year, only to
the extent of the lesser of the two following amounts:
(i) the amount by which 50 percent of the taxpayer’s contribution base for such
succeeding taxable year exceeds the sum of the charitable contributions described in
subsection (b)(1)(A) payment of which is made by the taxpayer within such succeeding
taxable year (determined without regard to this subparagraph) and the charitable
contributions described in subsection (b)(1)(A) payment of which was made in taxable
years before the contribution year which are treated under this subparagraph as having
been paid in such succeeding taxable year; or
(ii) in the case of the first succeeding taxable year, the amount of such excess, and in
the case of the second, third, fourth, or fifth succeeding taxable year, the portion of
such excess not treated under this subparagraph as a charitable contribution described

in subsection (b)(1)(A) paid in any taxable year intervening between the contribution
year and such succeeding taxable year.
(B) Special rule for net operating loss carryovers
In applying subparagraph (A), the excess determined under subparagraph (A) for the
contribution year shall be reduced to the extent that such excess reduces taxable
income (as computed for purposes of the second sentence of section 172 (b)(2) ) and
increases the net operating loss deduction for a taxable year succeeding the
contribution year.
(2) Corporations
(A) In general
Any contribution made by a corporation in a taxable year (hereinafter in this paragraph
referred to as the “contribution year”) in excess of the amount deductible for such year
under subsection (b)(2)(A) shall be deductible for each of the 5 succeeding taxable
years in order of time, but only to the extent of the lesser of the two following
amounts:
(i) the excess of the maximum amount dedu ctible for such succeeding taxable year
under subsection (b)(2)(A) over the sum of the contributions made in such year plus
the aggregate of the excess contributions which were made in taxable years before the
contribution year and which are deductible und er this subparagraph for such succeeding
taxable year; or
(ii) in the case of the first succeeding taxable year, the amount of such excess
contribution, and in the case of the second, third, fourth, or fifth succeeding taxable
year, the portion of such exc ess contribution not deductible under this subparagraph for
any taxable year intervening between the contribution year and such succeeding
taxable year.
(B) Special rule for net operating loss carryovers
For purposes of subparagraph (A), the excess of—
(i) the contributions made by a corporation in a taxable year to which this section
applies, over
(ii) the amount deductible in such year under the limitation in subsection (b)(2)(A),
shall be reduced to the extent that such excess reduces taxable income (as computed
for purposes of the second sentence of section 172 (b)(2) ) and increases a net operating
loss carryover under section 172 to a succeeding taxable year.
(e) Certain contributions of ordinary income and capital ga in property
(1) General rule
The amount of any charitable contribution of property otherwise taken into account
under this section shall be reduced by the sum of —
(A) the amount of gain which would not have been long -term capital gain (determined
without regard to section 1221 (b)(3) ) if the property contributed had been sold by the
taxpayer at its fair market value (determined at the time of such contribution), and
(B) in the case of a charitable contribution —
(i) of tangible personal property —
(I) if the use by the donee is unrelated to the purpose or function constituting the basis
for its exemption under section 501 (or, in the case of a governmental unit, to any
purpose or function described in subsection (c)), or
(II) which is applicable property (as defined in paragraph (7)(C), but without regard to
clause (ii) thereof) which is sold, exchanged, or otherwise disposed of by the done e
before the last day of the taxable year in which the contribution was made and with
respect to which the donee has not made a certification in accordance with paragraph
(7)(D),

(ii) to or for the use of a private foundation (as defined in section 509 (a) ), other than
a private foundation described in subsection (b)(1)(F),
(iii) of any patent, copyright (other than a copyright described in
section 1221 (a)(3) or 1231 (b)(1 )(C) ), trademark, trade name, trade secret, know –
how, software (other than software described in section 197 (e)(3)(A)(i) ), or similar
property, or applications or registrations of such property, or
(iv) of any taxidermy property which is contributed by the person who prepared,
stuffed, or mounted the property or by any person who paid or incurred the cost of
such preparation, stuffing, or mounting,
the amount of gain which would have been long -term capital gain if the property
contributed had been sold by the taxpayer at its fair market value (determined at the
time of such contribution).
For purposes of applying this paragraph (other than in the case of gain to which
section 617 (d)(1) , 1245 (a) , 1250 (a) , 1252 (a) , or 1254 (a) applies), property which
is property used in the trade or business ( as defined in section 1231 (b) ) shall be
treated as a capital asset. For purposes of applying this paragraph in the case of a
charitable contribution of stock in an S corporation, rules similar to the rules of
section 751 shall apply in determining whether gain on such stock would have been
long -term capital gain if such stock were sold by the taxpayer. For purposes of this
paragraph, the determination of whether property is a capital asset shall be made
without rega rd to the exception contained in section 1221 (a)(3)(C) for basis
determined under section 1022 .
(2) Allocation of basis
For purposes of paragraph (1), in the case of a charitable contribution of less than the
taxpayer’s entire interest in the property contributed, the taxpayer’s adjusted basis in
such property shall be allocated between the interest contributed and any interest not
contributed in accordance with regulations prescribed by the Secretary.
(3) Special ru le for certain contributions of inventory and other property
(A) Qualified contributions
For purposes of this paragraph, a qualified contribution shall mean a charitable
contribution of property described in paragraph (1) or (2) of section 1221 (a) , by a
corporation (other than a corporation which is an S corporation) to an organization
which is described in section 501 (c)(3) and is exempt under section 501 (a) (other than
a private foundation, as defined in section 509 (a) , which is not an operating
foundation, as defined in section 4942 (j)(3) ), but only if—
(i) the use of the property by the donee is related to the purpose or function
constituting the basis for its exemption under section 501 and the property is to be
used by the donee solely for the care of the ill, the needy, or infants;
(ii) the property is not transferred by the donee in exchange for money, other
property, or services;
(iii) the taxpayer receives from the donee a written statement representing that its use
and disposition of the property will be in accordance with the provisions of clauses (i)
and (ii); and
(iv) in the case where the property is subject to regulation under the Federal Food,
Drug, and Cosmetic Act , as amended, such property must fully satisfy the applicable
requirements of such Act and regulations promulgated thereunder on the date of
transfer and for one hundred and eighty days prior thereto.
(B) Amount of reduction
The reduction under paragraph ( 1)(A) for any qualified contribution (as defined in
subparagraph (A)) shall be no greater than the sum of —

(i) one -half of the amount computed under paragraph (1)(A) (computed without regard
to this paragraph), and
(ii) the amount (if any) by which the cha ritable contribution deduction under this
section for any qualified contribution (computed by taking into account the amount
determined in clause (i), but without regard to this clause) exceeds twice the basis of
such property.
(C) Special rule for contrib utions of food inventory
(i) General rule In the case of a charitable contribution of food from any trade or
business of the taxpayer, this paragraph shall be applied—
(I) without regard to whether the contribution is made by a C corporation, and
(II) only to food that is apparently wholesome food.
(ii) Limitation In the case of a taxpayer other than a C corporation, the aggregate
amount of such contributions for any taxable year which may be taken into account
under this section shall not exceed 10 percent of the taxpayer’s aggregate net income
for such taxable year from all trades or businesses from which such contributions were
made for such year, computed without regard to this section.
(iii) Apparently wholesome food For purposes of this subparagraph, t he term
“apparently wholesome food” has the meaning given to such term by section 22(b)(2)
of the Bill Emerson Good Samaritan Food Donation Act ( 42 U.S.C. 1791 (b)(2) ), as in
effect on the date of the enactment of this subparagraph.
(iv) Termination This subparagraph shall not apply to contributions made after
December 31, 2009.
(D) Special rule for contributions of book inventory to public schools
(i) Contributions of book inventory In determining whether a qualified book
contribution is a qualified contribution, subparagraph (A) shall be applied without
regard to whether the donee is an organization described in the matter preceding
clause (i) of subparagraph (A).
(ii) Qualified book contribution For purposes of this paragraph, the term “qualified book
contribution” means a charitable contribution of books to a public school which is an
educational organization described in subsection (b)(1)(A)(ii) and which provides
elementary education or secondary education (kindergarten through g rade 12).
(iii) Certification by donee Subparagraph (A) shall not apply to any contribution of
books unless (in addition to the certifications required by subparagraph (A) (as
modified by this subparagraph)), the donee certifies in writing that —
(I) the bo oks are suitable, in terms of currency, content, and quantity, for use in the
donee’s educational programs, and
(II) the donee will use the books in its educational programs.
(iv) Termination This subparagraph shall not apply to contributions made after
December 31, 2009.
(E) This paragraph shall not apply to so much of the amount of the gain described in
paragraph (1)(A) which would be long- term capital gain but for the application of
sections 617 , 1245 , 1250 , or 1252 .
(4) Special rule for contributions of scientific property used for research
(A) Limit on reduction
In the case of a qualified research contribution, the reduction under paragraph (1)(A)
shall be no greater than the amount determined under paragraph (3)(B).
(B) Qualified research contributions
For purposes of this paragraph, the term “qualified research contribution” means a
charitable contribution by a corporation of tangible personal property described in
paragraph (1) of section 1221 (a) , but only if—

(i) the contribution is to an organization described in subparagraph (A) or
subparagraph (B) of section 41 (e)(6) ,
(ii) the property is constructed or assembled by the taxpayer,
(iii) the contribution is made not later than 2 years after the date the constructi on or
assembly of the property is substantially completed,
(iv) the original use of the property is by the donee,
(v) the property is scientific equipment or apparatus substantially all of the use of
which by the donee is for research or experimentation (w ithin the meaning of
section 174 ), or for research training, in the United States in physical or biological
sciences,
(vi) the property is not transferred by the donee in exchange for money, other
property, or services, and
(vii) the taxpayer receives from the donee a written statement representing that its
use and disposition of the property will be in accordance with the provisions of clauses
(v) and (vi).
(C) Construction of property by taxpayer
For purposes of this paragraph, property shall be treated as constructed by the
taxpayer only if the cost of the parts used in the construction of such property (other
than parts manufactured by the taxpayer or a related person) do not exceed 50 percent
of the taxpayer’s basis in such property.
(D) Corporation
For purposes of this paragraph, the term “corporation” shall not include —
(i) an S corporation,
(ii) a personal holding company (as defined in section 542 ), and
(iii) a service organization (as defined in section 414 (m)(3) ).
(5) Special rule for contributions of stock for which market quotations are
readily available
(A) In general
Subparagraph (B)(ii) of paragraph (1) shall not apply to any contribution of qualified
appreciated stock.
(B) Qualified appreciated stock
Except as provided in subparagraph (C), for purposes of this paragraph, the term
“qualified appreciated stock” means any stock of a corporation —
(i) for which (as of the date of the contribution) market quotations are readily available
on an established securities market, and
(ii) which is capital gain property (as defined in subsection (b)(1)(C)(iv)).
(C) Donor may not contribute more than 10 percent of stock of corporation
(i) In general In the case of any donor, the term “qualified appreciated stock” shall not
include any stock of a corporation contributed by the donor in a contribution to which
paragraph (1)(B)(ii) applies (determined without regard to this paragraph) to the
extent that the amount of the stock so contributed (when increased by the aggregate
amount of all prior such contributions by the donor of stock in such corporation)
exceeds 10 percent (in value) of all of the outstanding stock of s uch corporation.
(ii) Special rule For purposes of clause (i), an individual shall be treated as making all
contributions made by any member of his family (as defined in section 267 (c)(4) ).
(6) Special rule for contributions of computer technology and equipment for
educational purposes
(A) Limit on reduction
In the case of a qualified computer contribution, the reduction under paragraph (1)(A)
shall be no greater than the amount determined under paragraph (3)(B).

(B) Qualified computer contribution
For purposes of this paragraph, the term “qualified computer con tribution” means a
charitable contribution by a corporation of any computer technology or equipment, but
only if—
(i) the contribution is to —
(I) an educational organization described in subsection (b)(1)(A)(ii),
(II) an entity described in section 501 (c)(3) and exempt from tax under
section 501 (a) (other than an entity described in subclause (I)) that is organized
pr imarily for purposes of supporting elementary and secondary education, or
(III) a public library (within the meaning of section 213(1)(A) of the Library Services
and Technology Act ( 20 U.S.C. 9122 (1)(A) )), [1] as in effect on the date of the
enactment of the Community Renewal Tax Relief Act of 2000), established and
maintained by an entity described in subsection (c)(1),
(ii) the contribution is made not later than 3 years after the date the taxpayer acquired
the property (or in the case of property constructed or assembled by the taxpayer, the
date the construction or assembling of the property is subs tantially completed),
(iii) the original use of the property is by the donor or the donee,
(iv) substantially all of the use of the property by the donee is for use within the United
States for educational purposes that are related to the purpose or functi on of the
donee,
(v) the property is not transferred by the donee in exchange for money, other
property, or services, except for shipping, installation and transfer costs,
(vi) the property will fit productively into the donee’s education plan,
(vii) the d onee’s use and disposition of the property will be in accordance with the
provisions of clauses (iv) and (v), and
(viii) the property meets such standards, if any, as the Secretary may prescribe by
regulation to assure that the property meets minimum functionality and suitability
standards for educational purposes.
(C) Contribution to private foundation
A contribution by a corporation of any computer technology or equipment to a private
foundation (as defined in section 509 ) shall be treated as a qualified computer
contribution for purposes of this paragraph if —
(i) the contribution to the private foundation satisfies the requirements of clauses (ii)
and (v) of subparagraph (B), and
(ii) within 30 days after such contribution, the private foundation —
(I) contributes the property to a donee described in clause (i) of subparagraph (B) that
satisfies the requirements of clauses (iv) through (vii) of subparagraph (B), a nd
(II) notifies the donor of such contribution.
(D) Donations of property reacquired by manufacturer
In the case of property which is reacquired by the person who constructed or
assembled the property—
(i) subparagraph (B)(ii) shall be applied to a contribution of such property by such
person by taking into account the date that the original construction or assembly of the
property was substantially completed, and
(ii) subparagraph (B)(iii) shall not apply to such contr ibution.
(E) Special rule relating to construction of property
For the purposes of this paragraph, the rules of paragraph (4)(C) shall apply.
(F) Definitions
For the purposes of this paragraph —

(i) Computer technology or equipment The term “computer technology or equipment”
means computer software (as defined by section 197 (e)(3)(B) ), computer or peripheral
equipment (as defined by section 168 (i)(2)(B) ), and fiber optic cable related to
computer use.
(ii) Corporation The term “corporation” has the meaning given to such term by
paragraph (4)(D).
(G) Termination
This paragraph shall not apply to any contribut ion made during any taxable year
beginning after December 31, 2009.
(7) Recapture of deduction on certain dispositions of exempt use property
(A) In general
In the case of an applicable disposition of applicable property, there shall be included in
the income of the donor of such property for the taxable year of such donor in which
the applicable disposition occurs an amount equal to the excess (if any) of —
(i) the amount of the deduction allowed to the donor under this section with respect to
such property , over
(ii) the donor’s basis in such property at the time such property was contributed.
(B) Applicable disposition
For purposes of this paragraph, the term “applicable disposition” means any sale,
exchange, or other disposition by the donee of applicable property—
(i) after the last day of the taxable year of the donor in which such property was
contributed, and
(ii) before the last day of the 3 -year period beginning on the date of the contribution of
such property,
unless the donee makes a certification in accordance with subparagraph (D).
(C) Applicable property
For purposes of this paragraph, the term “applicable property” means charitable
deduction property (as defined in section 6050L (a)(2)(A) )—
(i) which is tangible personal property the use of which is identified by the donee as
related to the purpose or function constituting the basis of the donee’s exemption under
section 501 , and
(ii) for which a deduction in excess of the donor’s basis is allowed.
(D) Certification
A certification meets the requirements of this subparagraph if it is a written statement
which is signed under penalty of perjury by an officer of the donee organization and —
(i) which —
(I) certifies that the use of the property by the donee was substantial and related to
the purpose or function constituting the basis for the donee’s exemption under
section 501 , and
(II) describes how the property was used and how such use furthered such purpose or
function, or
(ii) which —
(I) states the intended use of the property by the donee at the time of the
contribution, and
(II) certifies that s uch intended use has become impossible or infeasible to implement.
(f) Disallowance of deduction in certain cases and special rules
(1) In general
No deduction shall be allowed under this section for a contribution to or for the use of
an organization or trust described in section 508 (d) or 4948 (c)(4) subject to the
conditions specified in such sections.

(2) Contributions of property placed in trust
(A) Remainder interest
In the case of property transferred in trust, no deduction shall be allowed under this
section for the value of a contribution of a remainder interest unless the trust is a
charitable remainder annuity trust or a charitable remainder unitrust (described in
section 664 ), or a pooled income fund (described in section 642 (c)(5) ).
(B) Income interests, etc.
No deduction shall be allowed under this section for the value of any interest in
property (other than a remainder interest) transferred in trust unless the interest is in
the form of a guaranteed annuity or the trust instrument specifies that the interest is a
fixed percentage distributed yearly of the fair market value of the trust property (to be
determined yearly) and the grantor is treated as the owner of such interest for
purposes of applying section 671 . If the donor ceases to be treated as the owner of
such an interest for purposes of applying section 671 , at the time the donor ceases to
be so treated, the donor shall for purposes of this chapter be considered as having
received an amount of income equal to the amount of any deduction he received under
this section for the contribution reduced by the discounted value of all amounts of
income earned by the trust and taxable to him before the time at which he ceases to be
treated as the owner of the interest. Such amounts of income shall be discounted to the
date of the contribution. The Secretary shall prescribe such regulations as may be
necessary to carry out the purposes of this subparagraph.
(C) Denial of deduction in case of payments by certain trusts
In any case in which a deduction is allowed under this section for the value of an
interest in property described in subparagraph (B), transferred in trust, no deduction
shall be allowed under this section to the grantor or any other person for the amount of
any contribution made by the trust with respect to such interest.
(D) Exception
This paragraph shall not apply in a case in which the value of all interests in pr operty
transferred in trust are deductible under subsection (a).
(3) Denial of deduction in case of certain contributions of partial interests in
property
(A) In general
In the case of a contribution (not made by a transfer in trust) of an interest in prop erty
which consists of less than the taxpayer’s entire interest in such property, a deduction
shall be allowed under this section only to the extent that the value of the interest
contributed would be allowable as a deduction under this section if such interest had
been transferred in trust. For purposes of this subparagraph, a contribution by a
taxpayer of the right to use property shall be treated as a contribution of less than the
taxpayer’s entire interest in such property.
(B) Exceptions
Subparagraph ( A) shall not apply to —
(i) a contribution of a remainder interest in a personal residence or farm,
(ii) a contribution of an undivided portion of the taxpayer’s entire interest in property,
and
(iii) a qualified conservation contribution.
(4) Valuation of remainder interest in real property
For purposes of this section, in determining the value of a remainder interest in real
property, depreciation (computed on the straight line method) and depletion of such
property shall be taken into account, and such value shall be discounted at a rate of 6
percent per annum, except that the Secretary may prescribe a different rate.

(5) Reduction for certain interest
If, in connection with any charitable contribution, a liability is assumed by the recipient
or by any other person, or if a charitable contribution is of property which is subject to
a liability, then, to the extent necessary to avoid the duplication of amounts, the
amount taken into account for purposes of this section as the amount of the charitable
contribution—
(A) shall be reduced for interest
(i) which has been paid (or is to be paid) by the taxpayer,
(ii) which is attributable to the liability, and
(iii) which is attributable to any period after the making of the contribution, and
(B) in the case of a bond, shall be further reduced for interest
(i) which has been paid (or is to be paid) by the taxpayer on indebtedness incurred or
continued to purchase or carry such bond, and
(ii) which is attributable to any period before the making of the contribution.
The reduction pursuant to subparagraph (B) shall not exceed the interest (including
interest equivalent) on the bond which is attributable to any period before the making
of the contribution and which is not (under the taxpayer’s method of accounting)
includible in the gross income of the taxpayer for any taxable year. For purposes of this
paragraph, the term “bond” means any bond, debenture, note, or certificate or other
evidence of indebtedness.
(6) Deductions for out -of -pocket expenditures
No deduction shall be allowed under this section for an out -of-pocket expenditure made
by any person on behalf of an organization described in subsection (c) (other than an
organization described in section 501 (h)(5) (relating to churches, etc.)) if the
expenditure is made for the purpose of influencing legislation (within t he meaning of
section 501 (c)(3) ).
(7) Reformations to co mply with paragraph (2)
(A) In general
A deduction shall be allowed under subsection (a) in respect of any qualified
reformation (within the meaning of section 2055 (e)(3)(B) ).
(B) Rules similar to section 2055 (e)(3) to apply
For purposes of this paragraph, rules similar to the rules of section 2055 (e)(3) shall
apply.
(8) Substantiation requirement for certain con tributions
(A) General rule
No deduction shall be allowed under subsection (a) for any contribution of $250 or
more unless the taxpayer substantiates the contribution by a contemporaneous written
acknowledgment of the contribution by the donee organization that meets the
requirements of subparagraph (B).
(B) Content of acknowledgement
An acknowledgement meets the requirements of this subparagraph if it includes the
following information:
(i) The amount of cash and a description (but not value) of any proper ty other than
cash contributed.
(ii) Whether the donee organization provided any goods or services in consideration, in
whole or in part, for any property described in clause (i).
(iii) A description and good faith estimate of the value of any goods or ser vices
referred to in clause (ii) or, if such goods or services consist solely of intangible
religious benefits, a statement to that effect.

For purposes of this subparagraph, the term “intangible religious benefit” means any
intangible religious benefit which is provided by an organization organized exclusively
for religious purposes and which generally is not sold in a commercial transaction
outside the donative context.
(C) Contemporaneous
For purposes of subparagraph (A), an acknowledgment shall be consi dered to be
contemporaneous if the taxpayer obtains the acknowledgment on or before the earlier
of—
(i) the date on which the taxpayer files a return for the taxable year in which the
contribution was made, or
(ii) the due date (including extensions) for f iling such return.
(D) Substantiation not required for contributions reported by the donee
organization
Subparagraph (A) shall not apply to a contribution if the donee organization files a
return, on such form and in accordance with such regulations as the Secretary may
prescribe, which includes the information described in subparagraph (B) with respect to
the contribution.
(E) Regulations
The Secretary shall prescribe such regulations as may be necessary or appropriate to
carry out the purposes of this par agraph, including regulations that may provide that
some or all of the requirements of this paragraph do not apply in appropriate cases.
(9) Denial of deduction where contribution for lobbying activities
No deduction shall be allowed under this section for a contribution to an organization
which conducts activities to which section 162 (e)(1) applies on matters of direct
financial interest to the donor’s trade or business, if a principal purpose of the
contribution was to avoid Federal income tax by securing a deduction for such activities
under this section which would be disallowed by reason of section 162 (e) if the donor
had conducted such activities directly. No deduction shall be allowed under
section 162 (a) for any amount for which a deduction is disallowed under the preceding
sentence.
(10) Split -dollar life insurance, annuity, and endowment contracts
(A) In general
Nothing in this section or in section 545 (b)(2) , 642 (c) , 2055 , 2106 (a)(2) ,
or 2522 shall be construed to allow a deduction, and no deduction shall be allowed, for
any transfer to or for the use of an organization described in subsection (c) if in
connection with such transfer —
(i) the organization directly or indirectly pays, or has previously paid, any premium on
any personal benefit contract with respect to the transferor, or
(ii) there is an understanding or expectation that any person will directly or indirectly
pay any pre mium on any personal benefit contract with respect to the transferor.
(B) Personal benefit contract
For purposes of subparagraph (A), the term “personal benefit contract” means, with
respect to the transferor, any life insurance, annuity, or endowment cont ract if any
direct or indirect beneficiary under such contract is the transferor, any member of the
transferor’s family, or any other person (other than an organization described in
subsection (c)) designated by the transferor.
(C) Application to charitable remainder trusts
In the case of a transfer to a trust referred to in subparagraph (E), references in
subparagraphs (A) and (F) to an organization described in subsection (c) shall be
treated as a reference to such trust.

(D) Exception for certain annuity contracts
If, in connection with a transfer to or for the use of an organization described in
subsection (c), such organization incurs an obligation to pay a charitable gift annuity
(as defined in section 501 (m) ) and such organization purchases any annuity contract
to fund such obligation, persons receiving paym ents under the charitable gift annuity
shall not be treated for purposes of subparagraph (B) as indirect beneficiaries under
such contract if—
(i) such organization possesses all of the incidents of ownership under such contract,
(ii) such organization is entitled to all the payments under such contract, and
(iii) the timing and amount of payments under such contract are substantially the
same as the timing and amount of payments to each such person under such obligation
(as such obligation is in effect at the time of such transfer).
(E) Exception for certain contracts held by charitable remainder trusts
A person shall not be treated for purposes of subparagraph (B) as an indirect
beneficiary under any life insurance, annuity, or endowment contract held by a
charitable remainder annuity trust or a charitable remainder unitrust (as defined in
section 664 (d) ) solely by reason of being entitled to any payment referred to in
paragraph (1)(A) or (2)(A) of section 664 (d) if—
(i) such trust possesses all of the incidents of ownership under such contract, and
(ii) such trust is entitled to all the payments under such contract.
(F) Excise tax on premiums paid
(i) In general There is hereby imposed on any organization described in subsection (c)
an excise tax equal to the premiums paid by such organization on any life insurance,
annuity, or endowment contract if the payment of premiums on such contract is in
connection with a transfer for which a deduction is not allowable under subparagraph
(A), determined without regard to when such transfer is made.
(ii) Payments by other persons For purposes of clause (i), payments made by a ny
other person pursuant to an understanding or expectation referred to in subparagraph
(A) shall be treated as made by the organization.
(iii) Reporting Any organization on which tax is imposed by clause (i) with respect to
any premium shall file an annua l return which includes—
(I) the amount of such premiums paid during the year and the name and TIN of each
beneficiary under the contract to which the premium relates, and
(II) such other information as the Secretary may require.
The penalties applicable to returns required under section 6033 shall apply to returns
required under this clause. Returns required under this clause shall be furnished at such
time and in such manner as the Secretary shall by forms or regulations require.
(iv) Certain rules to apply The tax imposed by this subparagraph shall be treated as
imposed by chapter 42 for purposes of this title other than subchapter B of chapter 42.
(G) Special rule where State requires specification of charitable gift annuitant
in contract
In the case of an obligation to pay a charitable gift annuity referred to in subparagraph
(D) which is entered into under the laws of a State which requires, in order for the
charitable gift annuity to be exempt from insurance regulation by such State, that each
beneficiary under the charitable gift annuity be named as a beneficiary under an
annuity contract issued by an insurance company authorized to transact business in
such State, the requirements of clauses (i) and (ii) of subparagraph (D) shall be treated
as met if —
(i) such State law requirement was in effect on February 8, 1999,

(ii) each such beneficiary under the charitable gift annuity is a bona fide resident of
such State at the time the obligation to pay a charitable gift annuity is entered into, and
(iii) the only persons entitled to payments under such contract are persons entitled to
payments as beneficiaries under such obligation on the date such obligation is entered
into.
(H) Member of family
For purposes of this paragraph, an individual’s family consists of the individual’s
grandparents, the grandparents of such individual’s spo use, the lineal descendants of
such grandparents, and any spouse of such a lineal descendant.
(I) Regulations
The Secretary shall prescribe such regulations as may be necessary or appropriate to
carry out the purposes of this paragraph, including regulatio ns to prevent the avoidance
of such purposes.
(11) Qualified appraisal and other documentation for certain contributions
(A) In general
(i) Denial of deduction In the case of an individual, partnership, or corporation, no
deduction shall be allowed under s ubsection (a) for any contribution of property for
which a deduction of more than $500 is claimed unless such person meets the
requirements of subparagraphs (B), (C), and (D), as the case may be, with respect to
such contribution.
(ii) Exceptions
(I) Readi ly valued property Subparagraphs (C) and (D) shall not apply to cash,
property described in subsection (e)(1)(B)(iii) or section 1221 (a)(1) , publicly traded
securities (as defined in section 6050L (a)(2)(B) ), and any qualified vehicle described in
paragraph (12)(A)(ii) for which an acknowledgement under paragraph (12)(B)(iii) is
provided.
(II) Reasonable cause Clause (i) shall not apply if it is shown that the failure to meet
such requirements is due to reasonable cause and not to willful neglect.
(B) Property description for contributions of more than $500
In the case of contributions of property for which a deduction of more than $500 is
claimed, the requirements of this subparagraph are met if the individual, partnership or
corporation includes with the return for the taxable year in which the contribution is
made a description of such property and such other information as the Secretary may
require. The requirements of this subparagraph shall not apply to a C corporation which
is not a personal service corporation or a closely held C corporation.
(C) Qualified appraisal for contributions of more than $5, 000
In the case of contributions of property for which a deduction of more than $5,000 is
claimed, the requirements of this subparagraph are met if the individual, partnership,
or corporation obtains a qualified appraisal of such property and attaches to t he return
for the taxable year in which such contribution is made such information regarding such
property and such appraisal as the Secretary may require.
(D) Substantiation for contributions of more than $500,000
In the case of contributions of property for which a deduction of more than $500,000 is
claimed, the requirements of this subparagraph are met if the individual, partnership,
or corporation attaches to the return for the taxable year a qualified appraisal of such
property.
(E) Qualified appraisal and appraiser
For purposes of this paragraph —
(i) Qualified appraisal The term “qualified appraisal” means, with respect to any
property, an appraisal of such property which —

(I) is treated for purposes of this paragraph as a qualified appraisal under regulations
or other guidance prescribed by the Secretary, and
(II) is conducted by a qualified appraiser in accordance with generally accepted
appraisal standards and any regulations or other guidance prescribed under subclause
(I).
(ii) Qualified appraiser Except as provided in clause (iii), the term “qualified appraiser”
means an individual who —
(I) has earned an appraisal designation from a recognized professional appraiser
organization or has otherwise met minimum education and experience requirements set
forth in regulations prescribed by the Secretary,
(II) regularly performs appraisals for which the individual receives compensation, and
(III) meets such other requirements as may be prescribed by the Secretary in
regulations or other guidance.
(iii) Specific appraisals An individual shall not be treated as a qualified appraiser with
respect to any specific appraisal unless —
(I) the individual demonstrates verifiable education and experience in valuing the type
of property subject to the appraisal, an d
(II) the individual has not been prohibited from practicing before the Internal Revenue
Service by the Secretary under section 330 (c) of title 31 , United States Code, at any
time during the 3 -year period ending on the date of the a ppraisal.
(F) Aggregation of similar items of property
For purposes of determining thresholds under this paragraph, property and all similar
items of property donated to 1 or more donees shall be treated as 1 property.
(G) Special rule for pass -thru entities
In the case of a partnership or S corporation, this paragraph shall be applied at the
entity level, except that the deduction shall be denied at the partner or shareholder
level.
(H) Regulations
The Secretary may prescribe such regulations as may be necessary or appropriate to
carry out the purposes of this paragraph, including regulations that may provide that
some or all of the requirements of this paragraph do not apply in appropriate cases.
(12) Contributions of used motor vehicles, boats, and air planes
(A) In general
In the case of a contribution of a qualified vehicle the claimed value of which exceeds
$500—
(i) paragraph (8) shall not apply and no deduction shall be allowed under subsection
(a) for such contribution unless the taxpayer substanti ates the contribution by a
contemporaneous written acknowledgement of the contribution by the donee
organization that meets the requirements of subparagraph (B) and includes the
acknowledgement with the taxpayer’s return of tax which includes the deduction , and
(ii) if the organization sells the vehicle without any significant intervening use or
material improvement of such vehicle by the organization, the amount of the deduction
allowed under subsection (a) shall not exceed the gross proceeds received from such
sale.
(B) Content of acknowledgement
An acknowledgement meets the requirements of this subparagraph if it includes the
following information:
(i) The name and taxpayer identification number of the donor.
(ii) The vehicle identification number or simi lar number.
(iii) In the case of a qualified vehicle to which subparagraph (A)(ii) applies—

(I) a certification that the vehicle was sold in an arm’s length transaction between
unrelated parties,
(II) the gross proceeds from the sale, and
(III) a statement that the deductible amount may not exceed the amount of such
gross proceeds.
(iv) In the case of a qualified vehicle to which subparagraph (A)(ii) does not apply —
(I) a certification of the intended use or material improvement of the vehicle and the
inten ded duration of such use, and
(II) a certification that the vehicle would not be transferred in exchange for money,
other property, or services before completion of such use or improvement.
(v) Whether the donee organization provided any goods or services in consideration, in
whole or in part, for the qualified vehicle.
(vi) A description and good faith estimate of the value of any goods or services
referred to in clause (v) or, if such goods or services consist solely of intangible
religious benefits (as d efined in paragraph (8)(B)), a statement to that effect.
(C) Contemporaneous
For purposes of subparagraph (A), an acknowledgement shall be considered to be
contemporaneous if the donee organization provides it within 30 days of —
(i) the sale of the qualified vehicle, or
(ii) in the case of an acknowledgement including a certification described in
subparagraph (B)(iv), the contribution of the qualified vehicle.
(D) Information to Secretary
A donee organization required to provide an acknowledgement under this paragraph
shall provide to the Secretary the information contained in the acknowledgement. Such
information shall be provided at such time and in such manner as the Secretary may
prescribe.
(E) Qualified vehicle
For purposes of this p aragraph, the term “qualified vehicle” means any —
(i) motor vehicle manufactured primarily for use on public streets, roads, and
highways,
(ii) boat, or
(iii) airplane.
Such term shall not include any property which is described in section 1221 (a)(1) .
(F) Regulations or other guidance
The Secretary shall prescribe such regulations or other guidance as may be necessary
to carry out the purposes of this paragraph. The Secretary may prescribe regulations or
other guidance which exempts sales by the donee organization which are in direct
furtherance of such organization’s charitable purpose from the requirements of
subparagraphs (A)(ii) and (B)(iv)(II).
(13) Contributions of certain interests in buildings located in registered
historic districts
(A) In general
No deduction shall be allowed w ith respect to any contribution described in
subparagraph (B) unless the taxpayer includes with the return for the taxable year of
the contribution a $500 filing fee.
(B) Contribution described
A contribution is described in this subparagraph if such contr ibution is a qualified
conservation contribution (as defined in subsection (h)) which is a restriction with
respect to the exterior of a building described in subsection (h)(4)(C)(ii) and for which a
deduction is claimed in excess of $10,000.

(C) Dedicatio n of fee
Any fee collected under this paragraph shall be used for the enforcement of the
provisions of subsection (h).
(14) Reduction for amounts attributable to rehabilitation credit
In the case of any qualified conservation contribution (as defined in su bsection (h)), the
amount of the deduction allowed under this section shall be reduced by an amount
which bears the same ratio to the fair market value of the contribution as —
(A) the sum of the credits allowed to the taxpayer under section 47 for the 5 preceding
taxable years with respect to any building which is a part of such contribution, bears to
(B) the fair market value of the building on the date of the con tribution.
(15) Special rule for taxidermy property
(A) Basis
For purposes of this section and notwithstanding section 1012 , in the case of a
charitable contribution of taxidermy property which is made by the person who
prepared, stuffed, or mounted the property or by any person who paid or incurred the
cost of such preparation, stuffing, or mounting, only the cost of the preparing, stuffing,
or mounting shall be included in the basis of such property.
(B) Taxidermy property
For purposes of this section, the term “taxidermy property” means any work of art
which—
(i) is the reproduction or preservation of an animal, in whole or in part,
(ii) is prepared, stuffed, or mounted for purposes of recreating one or more
characteristics of such animal, and
(iii) contains a part of the body of the dead animal.
(16) Contributions of clothing and household items
(A) In general
In the case of an individual, partnership, or corporation, no deduction shall be allowed
under subsection (a) for any contribution of clothing or a household item unless such
clothing or household item is in good used condition or better.
(B) Items of minimal value
Notwithstanding subparagraph (A), the Secretary may by regulation deny a deduction
under subsection (a) for any contribution of clothing or a household item which has
minimal monetary value.
(C) Exception for certain property
Subparagraphs (A) and (B) shall not apply to any contribution of a single item of
clothing or a household item for which a deduction of more than $500 is claimed if the
taxpayer includes with the taxpayer’s return a qualified appraisal with respect to the
property.
(D) Household items
For purposes of this paragraph—
(i) In general The term “household items” includes furniture, furnishings, electronics,
appliances, linens, and other similar items.
(ii) Excluded items Such term does not include —
(I) food,
(II) paintings, antiques, and other objects of art,
(III) jewelry and gems, and
(IV) collections.
(E) Special rule for pass -thru entities

In the case of a partnership or S corporation, this paragraph shall be applied at the
entity level, except that the deduction shall be denied at the partner or shareholder
level.
(17) Recordkeeping
No deduction shall be allowed under subsection (a) for any contribution of a cash,
check, or other monetary gift unless the donor maintains as a record of such
contribution a bank record or a written communication from the donee showing the
name of the donee organization, the date of the contribution, and the amount of the
contribution.
(18) Contributions to donor advised funds
A deduction otherwise allowed under subsection (a) for any contribution to a donor
advised fund (as defined in section 4966 (d)(2) ) shall only be allowed if —
(A) the sponsoring organization (as defined in section 4966 (d)(1) ) with respect to
such donor advised fund is not—
(i) described in paragraph (3), (4), or (5) of subsection (c), or
(ii) a type III supporting organization (as defined in section 4943 (f)(5)(A) ) which is not
a functionally integrated type III supporting organization (as defined in
section 4943 (f)(5)(B) ), and
(B) the taxpayer obtains a contemporaneous written acknowledgment (determined
under rules similar to the rules of paragraph (8)(C)) from the sponsoring organization
(as so defined) of such donor advised fund that such organization has exclusive legal
control over the assets contributed.
(g) Amounts paid to maintain certain students as members of taxpayer’s
household
(1) In general
Subject to the limitations provided by paragraph (2), amounts paid by the taxpayer to
maintain an individua l (other than a dependent, as defined in section 152 (determined
without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof), or a relative of the
taxpayer) as a member of his household during the period that such individual is —
(A) a member of the taxpayer’s household under a written agreement between the
taxpayer and an organization described in paragraph (2), (3), or (4) of subsection (c)
to implement a program of the organization to provide educational opportunities for
pupils or students in private homes, and
(B) a full -time pupil or student in the twelfth or any lower grade at an educational
organization described in section 170 (b)(1)(A)(ii) located in the United States,
shall be treated as amounts paid for the use of the organization.
(2) Limitations
(A) Amount
Paragraph (1) shall apply to amounts paid within the taxable year only to the extent
that such amounts do not exceed $50 multiplied by the number of full calendar months
during the taxable yea r which fall within the period described in paragraph (1). For
purposes of the preceding sentence, if 15 or more days of a calendar month fall within
such period such month shall be considered as a full calendar month.
(B) Compensation or reimbursement
Paragraph (1) shall not apply to any amount paid by the taxpayer within the taxable
year if the taxpayer receives any money or other property as compensation or
reimbursement for maintaining the individual in his household during the period
described in parag raph (1).
(3) Relative defined

For purposes of paragraph (1), the term “relative of the taxpayer” means an individual
who, with respect to the taxpayer, bears any of the relationships described in
subparagraphs (A) through (G) of section 152 (d)(2) .
(4) No other amount allowed as deduction
No deduction shall be allowed under subsection (a) for any amount paid by a taxpayer
to maintain an individual as a member of his household under a program described in
paragraph (1)(A) except as provided in this subsection.
(h) Qualified conservation contribution
(1) In genera l
For purposes of subsection (f)(3)(B)(iii), the term “qualified conservation contribution”
means a contribution —
(A) of a qualified real property interest,
(B) to a qualified organization,
(C) exclusively for conservation purposes.
(2) Qualified real prop erty interest
For purposes of this subsection, the term “qualified real property interest” means any of
the following interests in real property:
(A) the entire interest of the donor other than a qualified mineral interest,
(B) a remainder interest, and
(C) a restriction (granted in perpetuity) on the use which may be made of the real
property.
(3) Qualified organization
For purposes of paragraph (1), the term “qualified organization” means an organization
which—
(A) is described in clause (v) or (vi) of subsection (b)(1)(A), or
(B) is described in section 501 (c)(3) and—
(i) meets the requirements of section 509 (a)(2) , or
(ii) meets the requirements of section 509 (a)(3) and is controlled by an organization
described in subparagraph (A) or in clause (i) of this subparagraph.
(4) Conservation purpose defined
(A) In g eneral
For purposes of this subsection, the term “conservation purpose” means —
(i) the preservation of land areas for outdoor recreation by, or the education of, the
general public,
(ii) the protection of a relatively natural habitat of fish, wildlife, or plants, or similar
ecosystem,
(iii) the preservation of open space (including farmland and forest land) where such
preservation is —
(I) for the scenic enjoyment of the general public, or
(II) pursuant to a clearly delineated Federal, State, or local govern mental conservation
policy,
and will yield a significant public benefit, or
(iv) the preservation of an historically important land area or a certified historic
structure.
(B) Special rules with respect to buildings in registered historic districts
In the case of any contribution of a qualified real property interest which is a restriction
with respect to the exterior of a building described in subparagraph (C)(ii), such
contribution shall not be considered to be exclusively for conservation purposes
unles s—
(i) such interest —

(I) includes a restriction which preserves the entire exterior of the building (including
the front, sides, rear, and height of the building), and
(II) prohibits any change in the exterior of the building which is inconsistent with th e
historical character of such exterior,
(ii) the donor and donee enter into a written agreement certifying, under penalty of
perjury, that the donee —
(I) is a qualified organization (as defined in paragraph (3)) with a purpose of
environmental protection, land conservation, open space preservation, or historic
preservation, and
(II) has the resources to manage and enforce the restriction and a commitment to do
so, and
(iii) in the case of any contribution made in a taxable year beginning after the date of
the enactment of this subparagraph, the taxpayer includes with the taxpayer’s return
for the taxable year of the contribution —
(I) a qualified appraisal (within the meaning of subsection (f)(11)(E)) of the qualified
property interest,
(II) photographs of t he entire exterior of the building, and
(III) a description of all restrictions on the development of the building.
(C) Certified historic structure
For purposes of subparagraph (A)(iv), the term “certified historic structure” means —
(i) any building, structure, or land area which is listed in the National Register, or
(ii) any building which is located in a registered historic district (as defined in
section 47 (c)(3)(B) ) and is certified by the Secretary of the Interior to the Secretary as
being of historic significance to the district.
A building, structure, or land area satisfies the preceding sentence if it satisfies such
sentence either at the time of the transfer or on the due date (including extensions) for
filing the transferor’s return under this chapter for the taxable year in whic h the
transfer is made.
(5) Exclusively for conservation purposes
For purposes of this subsection —
(A) Conservation purpose must be protected
A contribution shall not be treated as exclusively for conservation purposes unless the
conservation purpose is protected in perpetuity.
(B) No surface mining permitted
(i) In general Except as provided in clause (ii), in the case of a contribution of any
interest where there is a retention of a qualified mineral interest, subparagraph (A)
shall not be treated as met if at any time there may be extraction or removal of
minerals by any surface mining method.
(ii) Special rule With respect to any contribution of property in which the ownership of
the surface estate and mineral interests has been and remains separated,
su bparagraph (A) shall be treated as met if the probability of surface mining occurring
on such property is so remote as to be negligible.
(6) Qualified mineral interest
For purposes of this subsection, the term “qualified mineral interest” means —
(A) subsur face oil, gas, or other minerals, and
(B) the right to access to such minerals.
(i) Standard mileage rate for use of passenger automobile
For purposes of computing the deduction under this section for use of a passenger
automobile, the standard mileage rate shall be 14 cents per mile.
(j) Denial of deduction for certain travel expenses

No deduction shall be allowed under this section for traveling expenses (including
amounts expended for meals and lodging) while away from home, whether paid directly
or by reimbursement, unless there is no significant element of personal pleasure,
recreation, or vacation in such travel.
(k) Disallowance of deductions in certain cases
For disallowance of deductions for contributions to or for the use of communist
controlled organizations, see section 11(a) [2] of the Internal Security Act of 1950
(50 U.S.C. 790 ).
(l) Treatment of certain amounts paid to or for the benefit of ins titutions of
higher education
(1) In general
For purposes of this section, 80 percent of any amount described in paragraph (2) shall
be treated as a charitable contribution.
(2) Amount described
For purposes of paragraph (1), an amount is described in this paragraph if—
(A) the amount is paid by the taxpayer to or for the benefit of an educational
organization —
(i) which is described in subsection (b)(1)(A)(ii), and
(ii) which is an institution of higher education (as defined in section 3304 (f) ), and
(B) such amount would be allowable as a deduct ion under this section but for the fact
that the taxpayer receives (directly or indirectly) as a result of paying such amount the
right to purchase tickets for seating at an athletic event in an athletic stadium of such
institution.
If any portion of a pay ment is for the purchase of such tickets, such portion and the
remaining portion (if any) of such payment shall be treated as separate amounts for
purposes of this subsection.
(m) Certain donee income from intellectual property treated as an additional
charitable contribution
(1) Treatment as additional contribution
In the case of a taxpayer who makes a qualified intellectual property contribution, the
deduction allowed under subsection (a) for each taxable year of the taxpayer ending on
or after the date of such contribution shall be increased (subject to the limitations
under subsection (b)) by the applicable percentage of qualified donee income with
respect to such contribution which is properly allocable to such year under this
subsection.
(2) Reduction in additional deductions to extent of initial deduction
With respect to any qualified intellectual property contribution, the deduction allowed
under subsection (a) shall be increased under paragraph (1) only to the extent that the
aggregate amount of such increases with respect to such contribution exceed the
amount allowed as a deduction under subsection (a) with respect to such contribution
determined without regard to this subsection.
(3) Qualified donee income
For purposes of this subsection, the term “qualified donee income” means any net
income received by or accrued to the donee which is properly allocable to the qualified
intellectual property.
(4) Allocation of qualified donee income to taxable years of donor
For purposes of this subsection, qualified donee income shall be treated as properly
allocable to a taxable year of the donor if such income is received by or accrued to the
donee for the taxable year of the donee which ends within or with such taxable year of
the donor.

(5) 10- year limitation
Income shall not be treated as properly allocable to qualified intellectual property for
purposes of this subsection if such income is received by or accrued to the donee after
the 10-year period beginning on the date of the contribution of such property.
(6) Benefit limited to life of intellectual property
Income shall not be treated as properly allocable to qualified intellectual property for
purposes of this subsection if such income is received by or accrued to the donee after
the expiration of the legal life of such property.
(7) Applicable percentage
For purposes of this subsection, the term “applicable percentage” means the
percentage determined under the following table which corresponds to a taxable year of
the donor ending on or after the date of the qualified intellectual property contribution:

Taxable Year of Donor Ending on or After Date of
Contribution:
Applicable
Percentage:
1st 100
2nd 100
3rd 90
4th 80
5th 70
6th 60
7th 50
8th 40
9th 30
10th 20
11th 10
12th 10.
(8) Qualified intellectual property contribution
For purposes of this subsection, the term “qualified intellectual property contribution”
means any charitable contribution of qualified intellectual property —
(A) the amount of which taken into account under this section is reduced by reason of
subsection (e)(1), and
(B) with respect to which the donor informs the donee at the time of such contribution
that the donor intends to treat such contribution as a quali fied intellectual property
contribution for purposes of this subsection and section 6050L .
(9) Qualified intellectual property
For purposes of this subsection, the term “qualified intellectual property” means
property described in subsection (e)(1)(B)(iii) (other than property contributed to or for
the use of an organization described in subsection (e)(1)(B)(ii)).
(10) Other special rules
(A) Application of limita tions on charitable contributions

Any increase under this subsection of the deduction provided under subsection (a) shall
be treated for purposes of subsection (b) as a deduction which is attributable to a
charitable contribution to the donee to which such increase relates.
(B) Net income determined by donee
The net income taken into account under paragraph (3) shall not exceed the amount of
such income reported under section 6050L (b)(1) .
(C) Deduction limited to 12 taxable years
Except as may be provided under subparagraph (D)(i), this subsection shall not appl y
with respect to any qualified intellectual property contribution for any taxable year of
the donor after the 12th taxable year of the donor which ends on or after the date of
such contribution.
(D) Regulations
The Secretary may issue regulations or other guidance to carry out the purposes of this
subsection, including regulations or guidance—
(i) modifying the application of this subsection in the case of a donor or donee with a
short taxable year, and
(ii) providing for the determination of an amount to be treated as net income of the
donee which is properly allocable to qualified intellectual property in the case of a
donee who uses such property to further a purpose or function constituting the basis of
t he donee’s exemption under section 501 (or, in the case of a governmental unit, any
purpose described in section 170 (c) ) and does not possess a right to receive any
payment from a third party with respect to such proper ty.
(n) Expenses paid by certain whaling captains in support of Native Alaskan
subsistence whaling
(1) In general
In the case of an individual who is recognized by the Alaska Eskimo Whaling
Commission as a whaling captain charged with the responsibility of maintaining and
carrying out sanctioned whaling activities and who engages in such activities during the
taxable year, the amount described in paragraph (2) (to the extent such amount does
not exceed $10,000 for the taxable year) shall be treated for purp oses of this section as
a charitable contribution.
(2) Amount described
(A) In general
The amount described in this paragraph is the aggregate of the reasonable and
necessary whaling expenses paid by the taxpayer during the taxable year in carrying
out sanctioned whaling activities.
(B) Whaling expenses
For purposes of subparagraph (A), the term “whaling expenses” includes expenses for —
(i) the acquisition and maintenance of whaling boats, weapons, and gear used in
sanctioned whaling activities,
(ii) the su pplying of food for the crew and other provisions for carrying out such
activities, and
(iii) storage and distribution of the catch from such activities.
(3) Sanctioned whaling activities
For purposes of this subsection, the term “sanctioned whaling activi ties” means
subsistence bowhead whale hunting activities conducted pursuant to the management
plan of the Alaska Eskimo Whaling Commission.
(4) Substantiation of expenses
The Secretary shall issue guidance requiring that the taxpayer substantiate the whali ng
expenses for which a deduction is claimed under this subsection, including by

maintaining appropriate written records with respect to the time, place, date, amount,
and nature of the expense, as well as the taxpayer’s eligibility for such deduction, and
that (to the extent provided by the Secretary) such substantiation be provided as part
of the taxpayer’s return of tax.
(o) Special rules for fractional gifts
(1) Denial of deduction in certain cases
(A) In general
No deduction shall be allowed for a cont ribution of an undivided portion of a taxpayer’s
entire interest in tangible personal property unless all interests in the property are held
immediately before such contribution by —
(i) the taxpayer, or
(ii) the taxpayer and the donee.
(B) Exceptions
The Secretary may, by regulation, provide for exceptions to subparagraph (A) in cases
where all persons who hold an interest in the property make proportional contributions
of an undivided portion of the entire interest held by such persons.
(2) Valuation of s ubsequent gifts
In the case of any additional contribution, the fair market value of such contribution
shall be determined by using the lesser of —
(A) the fair market value of the property at the time of the initial fractional
contribution, or
(B) the fair market value of the property at the time of the additional contribution.
(3) Recapture of deduction in certain cases; addition to tax
(A) Recapture
The Secretary shall provide for the recapture of the amount of any deduction allowed
under this section (plus interest) with respect to any contribution of an undivided
portion of a taxpayer’s entire interest in tangible personal property —
(i) in any case in which the donor does not contribute all of the remaining interests in
such property to the donee (or, if such donee is no longer in existence, to any person
described in section 170 (c) ) on or before the earlier of —
(I) the date that is 10 years after the date of the initial fractional contribution, or
(II) the date of the death of the donor, and
(ii) in any case in which the donee has not, during the period begi nning on the date of
the initial fractional contribution and ending on the date described in clause (i) —
(I) had substantial physical possession of the property, and
(II) used the property in a use which is related to a purpose or function constituting
the basis for the organizations’ exemption under section 501 .
(B) Addition to tax
The tax imposed under this chapter for any taxable year for which there is a recapture
under subparagraph (A) shall be increased by 10 percent of the amount so recaptured.
(4) Definitions
For purposes of this subsection —
(A) Additional contribution
The term “additional contribution” means any charitable contribution by the taxpayer of
any interest in property with respect to which the taxpayer has previously made an
initial fractional contribution.
(B) Initial fractional contribution
The term “initial fractional contribution” means, with respect to any taxpayer, the first
charitable contribution of an undivided portion of the taxpayer’s entire interest in any
tangible personal property.

(p) Other cross references
(1) For treatment of certain organizations providing child care, see section 501 (k) .
(2) For charitable contributions of estates and trus ts, see section 642 (c) .
(3) For nondeductibility of contri butions by common trust funds, see section 584 .
(4) For charitable contributions of partners, see section 702 .
(5) For charitable contributions of nonresident aliens, see section 873 .
(6) For treatment of gifts for benefit of or use in connection with the Naval Academy as
gifts to or for use of the United States, see section 6973 of title 10 , United States Code.
(7) For treatment of gifts accepted by the Secretary of State, the Director of the
International Communication Agency, or the Director of the United States International
Development Cooperation Agenc y, as gifts to or for the use of the United States, see
section 25 of the State Department Basic Authorities Act of 1956.
(8) For treatment of gifts of money accepted by the Attorney General for credit to the
“Commissary Funds Federal Prisons” as gifts to or for the use of the United States, see
section 4043 of title 18 , United States Code.
(9) For charitable contributions to or for the use of Indian tribal governments (or their
subdivisions), see section 7871 .

[1] So in original. The third closing parenthesis probably should not appear.

[2] See References in Text note below.