1 2 3 4 41 able year reduced by the sum of the credits allowable under section 33 (relating to foreign tax credit), sec tion 37 (relating to retirement income), and section 38 (relating to investment in certain depreciable property). "(3) VERIFICATION.-The credit allowed by subsection (a) shall be allowed with respect to any political contribution, only if such political contribution is 5 6 7 8 9 verified in such manner as the Secretary or his delegate shall prescribe by regulations. 10 "(c) DEFINITION OF POLITICAL CONTRIBUTION.-For 11 purposes of this section, the term 'political contribution' 12 means a contribution or gift to "(1) an individual whose name is presented for election as President of the United States, Vice President of the United States, an elector for President or Vice President of the United States, a Member of the Senate, or a Member of (or Delegate to) the House of Representatives in a general or special election, in a primary election, or in a convention of a political party, for use by such individual to further his candidacy for any such office; or "(2) a committee acting in behalf of an individual or individuals described in paragraph (1), for use by such committee to further the candidacy of such indi vidual or individuals. 1 42 "(d) ELECTION TO TAKE DEDUCTION IN LIEU OF 2 CREDIT. This section shall not apply in the case of any 3 taxpayer who, for the taxable year, elects to take the deduc4 tion provided by section 218 (relating to deduction for con5 tributions to candidates for elective Federal office). Such 6 election shall be made in such manner and at such time as the 7 Secretary or his delegate shall prescribe by regulations. 9 "For disallowance of credit to estates and trusts, see section 642(a)(3).” (b) The table of sections for such subpart is amended 10 by striking out "Sec. 40. Overpayments of tax." 11 and inserting in lieu thereof 12 "Sec. 40. Contributions to candidates for elective Federal office. "Sec. 41. Overpayments of tax." (c) Section 642 (a) of the Internal Revenue Code of 13 1954 (relating to credits against tax for estates and trusts) 14 is amended by adding at the end thereof a new paragraph 15 as follows: 16 17 18 19 222 "(3) POLITICAL CONTRIBUTIONS.-An estate or trust shall not be allowed the credit against tax for political contributions to candidates for elective Federal office provided by section 40." DEDUCTION IN LIEU OF CREDIT SEC. 302. (a) Part VII of subchapter B of chapter 1 22 of the Internal Revenue Code of 1954 (relating to addi 43 1 tional itemized deductions for individuals) is amended by 2 renumbering section 218 as 219, and by inserting after 3 section 217 the following new section: 4 "SEC. 218. CONTRIBUTIONS TO CANDIDATES FOR ELEC 6 "(a) ALLOWANCE OF DEDUCTION.-In the case of an 7 individual, there shall be allowed as a deduction any political 8 contribution (as defined in subsection (c)) payment of 9 which is made by such individual within the taxable year. "(b) LIMITATIONS.— 10 11 12 13 "(1) AMOUNT.-The deduction under subsection (a) shall not exceed $100 for any taxable year. "(2) VERIFICATION.-The deduction under sub 14 section (a) shall be allowed, with respect to any politi 15 16 17 18 cal contribution, only if such political contribution is verified in such manner as the Secretary or his delegate shall prescribe by regulations. "(c) DEFINITION OF POLITICAL CONTRIBUTION.— 19 For purposes of this section, the term 'political contribution' 2 2 20 means a contribution or gift to— “(1) an individual whose name is presented for election as President of the United States, Vice President of the United States, an elector for President or Vice President of the United States, a Member of the Senate, or a Member of (or Delegate to) the House of 63-031 O 71 - 4 1 2 3 4 5 6 7 8 9 44 Representatives in a general or special election, in a primary election, or in a convention of a political party, for use by such individual to further his candidacy for any such office; or "(2) a committee acting in behalf of an individual or individuals described in paragraph (1), for use by such committee to further the candidacy of such individual or individuals. "(d) ELECTION TO TAKE CREDIT IN LIEU OF DE10 DUCTION. This section shall not apply in the case of any 11 taxpayer who, for the taxable year, elects to take the credit 12 against tax provided by section 40 (relating to credit against 13 tax for contributions to candidates for elective Federal office). 14 Such election shall be made in such manner and at such 15 time as the Secretary or his delegate shall prescribe by 16 regulations. 17 18 "(e) CROSS REFERENCE. "For disallowance of deduction to estates and trusts, see section 642(i).” (b) The table of sections for such part is amended by 19 striking out "Sec. 218. Cross references." 20 and inserting in lieu thereof "Sec. 218. Contributions to candidates for elective Federal office. "Sec. 219. Cross references." 45 1 (c) Section 642 of the Internal Revenue Code of 1954 2 (relating to special rules for credits and deductions for estates 3 and trusts) is amended by redesignating subsection (i) as 4 subsection (j), and by inserting after subsection (h) a new 5 subsection as follows: 6 "(i) POLITICAL CONTRIBUTIONS.-An estate or trust 7 shall not be allowed the deduction for contributions to can 8 9 10 didates for elective Federal office provided by section 218." EFFECTIVE DATE SEC. 303. The amendments made by sections 301 and 11 302 shall apply to taxable years ending after December 31, 12 1970, but only with respect to contributions or gifts pay13 ment of which is made after such date. |