Temporary modification of limitations on certain charitable contributions

(a) Temporary suspension of limitations on certain cash contributions (1) In general Except as otherwise provided in paragraph (2), qualified disaster relief contributions shall be disregarded in applying subsections (b) and (d) of section 170 of the Internal Revenue Code of 1986. (2) Treatment of excess contributions For purposes of section 170 of such Code— (A) Individuals In the case of an individual— (i) Limitation Any qualified disaster relief contribution shall be allowed as a deduction only to the extent that the aggregate of such contributions does not exceed the excess of the taxpayer’s contribution base (as defined in section 170(b)(1)(H) of such Code) over the amount of all other charitable contributions allowed under section 170(b)(1) of such Code. (ii) Carryover If the aggregate amount of qualified disaster relief contributions made in the contribution year (within the meaning of section 170(d)(1) of such Code) exceeds the limitation of clause (i), such excess shall be added to the excess described in section 170(b)(1)(G)(ii). (B) Corporations In the case of a corporation— (i) Limitation Any qualified disaster relief contribution shall be allowed as a deduction only to the extent that the aggregate of such contributions does not exceed the excess of 100 percent of the taxpayer’s taxable income (as determined under section 170(b)(2) of such Code) over the amount of all other charitable contributions allowed under such section. (ii) Carryover If the aggregate amount of qualified disaster relief contributions made in the contribution year (within the meaning of section 170(d)(2) of such Code) exceeds the limitation of clause (i), such excess shall be appropriately taken into account under section 170(d)(2), subject to the limitations thereof. (3) Qualified disaster relief contribution (A) In general For purposes of this subsection, the term qualified disaster relief contribution means any charitable contribution (as defined in section 170(c) of such Code) if— (i) such contribution— (I) is paid in cash to an organization described in section 170(b)(1)(A) of such Code during the period beginning on January 1, 2025, and ending on the date which is 60 days after the date of the enactment of this Act, and (II) is made for relief efforts in one or more qualified disaster areas, (ii) the taxpayer obtains from such organization contemporaneous written acknowledgment (within the meaning of section 170(f)(8) of such Code) that such contribution was used (or is to be used) for relief efforts described in clause (i)(II), and (iii) the taxpayer has elected the application of this subsection with respect to such contribution. (B) Exception Such term shall not include a contribution by a donor if the contribution is— (i) to an organization described in section 509(a)(3) of such Code, or (ii) for the establishment of a new, or maintenance of an existing, donor advised fund (as defined in section 4966(d)(2) of such Code). (C) Application of election to partnerships and S corporations In the case of a partnership or S corporation, the election under subparagraph (A)(iii) shall be made separately by each partner or shareholder. (b) Increase in limits on contributions of food inventory In the case of any charitable contribution of food during 2025 to which section 170(e)(3)(C) of such Code applies, subclauses (I) and (II) of clause (ii) thereof shall each be applied by substituting 25 percent for 15 percent. (c) Effective date This section shall apply to contributions made on or after January 1, 2025.