Permanent Extension of IRA Charitable Rollover Falls Short in U.S. House
On Dec. 11, the U.S. House fell just short of passing the Supporting America's Charities Act (H.R. 5806), a last minute bill introduced by House Ways and Means Committee Chairman Dave Camp (R-MI) that would have permanently extend the IRA Charitable Rollover and enhanced deductions for conservation contributions and food inventory. The final vote was 275-149, 15 votes short of the required supermajority needed to pass the House under special procedural rules.
Prior to its expiration on Dec. 31, 2013, the IRA charitable rollover allowed taxpayers age 70 ½ or older to direct up to $100,000 to an eligible charity without having the distribution count as income for tax purposes. If it had been enacted, H.R. 5806 would have permanently extended this important charitable giving incentive, essentially ending the need for Congress to pass temporary extensions of the provision.
Late yesterday, the Obama Administration announced that the President would likely veto H.R. 5806, an announcement that stalled the bill's momentum and ultimately led to its defeat. In a statement (pdf), the Administration voiced support for the charitable giving incentives in the bill but objected to the bill's lack of revenue neutrality.
While H.R. 5806 fell short, the U.S. Senate is still expected to pass and the President is expected to sign H.R. 5771, a bill that includes a one year retroactive extension of the IRA Charitable Rollover through Dec. 31, 2014 (the House passed H.R. 5771 on Dec. 3). We expect final action on H.R. 5771 by the end of this week.