Significant provisions of the House and Senate Tax Bills relevant to charitable donors.

  • The House and Senate Tax Bills have retained the charitable contribution deduction.
  • However, the tax advantages of charitable giving would be impacted by rate reductions and changes to other itemized deductions and the standard deduction.
  • Most of the provisions of the House Tax Bill and the Senate Tax Bill would become effective for tax years beginning after 2017. However, many of the Senate Tax Bill’s provisions, including the changes to the charitable deduction, tax rates, and other deductions, would expire after 2025. The law would then revert back to current law.
  • New Development: The Tax Cuts and Jobs Act of 2017 was passed by the U.S. Congress on December 20, 2017 and is awaiting final signature by President Trump.

These charts review the tax proposals most relevant to charitable donors in the Tax Cuts and Jobs Act passed November 16, 2017 by the House of Representatives (the House Tax Bill) and the Tax Cuts and Jobs Act passed by the Senate Committee on Finance on November 16, 2017 and passed by the Senate Budget Committee on November 28, 2017 (the Senate Tax Bill). A conference committee of the House and Senate are now reconciling the Bills. The charts also compare the proposed changes to current law.

 

Please read important disclosures at the end of the article.

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