Senators to Propose Tax Breaks for Donations to Haiti Relief Efforts

New York’s two senators announced today they plan to introduce legislation to suspend some limits on charitable tax deductions for gifts to help victims of Haiti’s earthquake.

Senators Kirsten Gillibrand and Charles E. Schumer, both Democrats, said the bill would waive rules that limit individuals from writing off more than 50 percent — and corporations more than 10 percent — of their income for charitable contributions in a given tax year.

The measure, which would apply to donations made in 2010, would be similar to tax breaks that were adopted for Hurricane Katrina relief efforts.

The bill would also extend special tax rules for donations of food inventory that expired at the end of 2009, the senators said. These would allow corporations that donate food for Haiti’s earthquake victims to deduct the actual market value, rather than the cost to produce the food.

“Haiti needs our help more than ever before and we need to make sure U.S. citizens have every opportunity to provide the Haitian people the humanitarian aid they need,” Senator Schumer said in a statement.