October 2, 2008 | Read Time: 1 minute
By a vote of 93-2, the Senate has passed legislation that would renew and extend several provisions affecting charitable giving.
One key provision would allow older donors to get a tax break when they give charities money from their individual retirement accounts.
Until December 31 of last year, donors age 70 or older were able to transfer up to $100,000 to charity from their individual retirement accounts each year without paying income taxes on the money.
The Senate-passed legislation would renew the provision retroactive to January 1, 2008, and extend it to the end of 2009.
Additional provisions in the Senate legislation would renew and extend other breaks related to charitable giving, including special deductions that businesses may take for gifts of food and donations of books and computers to schools.
The legislation also has provisions that would create tax incentives for charitable giving to help victims of summer storms, tornadoes, and floods in the Midwest.
The House of Representatives in May passed its own bill that would renew and extend tax provisions, including the one covering IRA’s. The Senate and House differ over how the legislation should be paid for and would have to agree before Congress could pass final legislation.
