Congress Makes Charitable Giving Incentives Permanent

Date Posted: 11/27/2017
Last Updated: 5/30/2024

Congress Makes Charitable Giving Incentives Permanent

Leaders in Congress have reached agreement on an historic bipartisan agreement on a tax bill that will have real impact on the work of charitable nonprofits.  The Protecting Americans from Tax Hikes Act of 2015 or PATH Act, which was part of the omnibus budget (HR 2029), permanently extends three charitable giving incentives:

  • The IRA charitable rollover, which allows individuals aged 70 1/2 and older to make tax-free distributions of up to $100,000 from their IRAs to charitable nonprofits;
  • The enhanced deduction for donations of food inventories; and
  • The enhanced deduction for conservation easements.

The charitable provisions represent a small part of this major tax package, which affects low-income families, industry, retail stores, and just about everyone and everything else. Notably, the tax package would make permanent the enhanced child tax credit and the enhanced earned income tax credit.

The PATH Act passed the House on December 17, and the Senate passed it on December 18. The White House has indicated that President Obama will sign it.

Contact NC Members of Congress