Deduction for remittances used for qualified purposes

(a) In general Part VII of subchapter B of chapter 1 of subtitle A of the Internal Revenue Code of 1986 is amended by inserting after section 223 the following new section: 223A. Deduction for remittances used for qualified purposes (a) Deduction allowed In the case of an individual there shall be allowed as a deduction an amount equal to so much of the qualified remittance transfers made by the taxpayer to recipients residing in a covered country during the taxable year as do not exceed $3,000. (b) Qualified remittance transfer For purposes of this section, the term qualified remittance transfer means a remittance transfer which is used by the recipient for housing, agriculture, education, healthcare, or small enterprise support. (c) Covered country For purposes of this section, the term covered country means a member state of the African Union or a member state of the Caribbean Community (CARICOM). (d) Regulations The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section.. (b) Clerical amendment The table of sections for part VII of subchapter B of chapter 1 of subtitle A of such Code is amended by inserting the following new item after the item relating to section 223: Sec. 223A. Deduction for remittances used for qualified purposes.. (c) Effective date The amendments made by this section shall apply to remittances made after the date of the enactment of this Act.