SAFE Act of 2020

I 116TH CONGRESS 2D SESSION H. R. 6498 To establish special temporary rules relating to the charitable deduction for the donation of hand sanitizer by a distilled spirits operation, and for other purposes. IN THE HOUSE OF REPRESENTATIVES APRIL 14, 2020 Ms. OMAR (for herself, Mr. YARMUTH, Ms. PINGREE, and Mr. KILMER) intro- duced the following bill; which was referred to the Committee on Ways and Means A BILL To establish special temporary rules relating to the charitable deduction for the donation of hand sanitizer by a distilled spirits operation, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Sanitary Access For 4 Everyone Act of 2020’’ or the ‘‘SAFE Act of 2020’’. 5 SEC. 2. TEMPORARY INCREASE IN LIMITATION ON CERTAIN 6 QUALIFIED CONTRIBUTIONS. 7 (a) SUSPENSION OF CURRENT LIMITATION.—Except 8 as otherwise provided in subsection (b), qualified contribu- 9 VerDate Sep 11 2014 20:42 May 04, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H6498.IH H6498 lotter on DSK9F5VC42PROD with BILLS 2 •HR 6498 IH tions of hand sanitizer shall be disregarded in applying 1 subsections (b) and (d) of section 170 of the Internal Rev- 2 enue Code of 1986. 3 (b) APPLICATION OF INCREASED LIMITATION.—For 4 purposes of section 170 of the Internal Revenue Code of 5 1986— 6 (1) INDIVIDUALS.—In the case of an indi- 7 vidual— 8 (A) LIMITATION.—Any qualified contribu- 9 tion of hand sanitizer shall be allowed as a de- 10 duction only to the extent that the aggregate of 11 such contributions does not exceed the excess of 12 the taxpayer’s contribution base (as defined in 13 subparagraph (H) of section 170(b)(1) of such 14 Code) over the amount of all other charitable 15 contributions allowed under section 170(b)(1) 16 of such Code. 17 (B) CARRYOVER.—If the aggregate 18 amount of qualified contributions of hand sani- 19 tizer made in the contribution year (within the 20 meaning of section 170(d)(1) of such Code) ex- 21 ceeds the limitation of clause (i), such excess 22 shall be added to the excess described in section 23 170(b)(1)(G)(ii). 24 VerDate Sep 11 2014 01:52 Apr 21, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6498.IH H6498 lotter on DSK9F5VC42PROD with BILLS 3 •HR 6498 IH (2) CORPORATIONS.—In the case of a corpora- 1 tion— 2 (A) LIMITATION.—Any qualified contribu- 3 tion of hand sanitizer shall be allowed as a de- 4 duction only to the extent that the aggregate of 5 such contributions does not exceed the excess of 6 the taxpayer’s taxable income (as determined 7 under paragraph (2) of section 170(b) of such 8 Code) over the amount of all other charitable 9 contributions allowed under such paragraph. 10 (B) CARRYOVER.—If the aggregate 11 amount of qualified contributions of hand sani- 12 tizer made in the contribution year (within the 13 meaning of section 170(d)(2) of such Code) ex- 14 ceeds the limitation of clause (i), such excess 15 shall be appropriately taken into account under 16 section 170(d)(2) subject to the limitations 17 thereof. 18 (c) QUALIFIED CONTRIBUTIONS OF HAND SANI- 19 TIZER.— 20 (1) IN GENERAL.—For purposes of this sub- 21 section, the term ‘‘qualified contribution of hand 22 sanitizer’’ means a contribution of property as de- 23 scribed in section 170(e)(3)(A) of such Code if— 24 VerDate Sep 11 2014 01:52 Apr 21, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H6498.IH H6498 lotter on DSK9F5VC42PROD with BILLS 4 •HR 6498 IH (A) such property is hand sanitizer con- 1 tributed— 2 (i) by a distilled spirits operation, and 3 (ii) during the period beginning on 4 February 1, 2020, and ending December 5 31, 2020. 6 (2) SPECIAL RULES.— 7 (A) TREATMENT FOR CONTRIBUTIONS OF 8 HAND SANITIZER BY INDIVIDUALS AND COR- 9 PORATIONS.—In the case of a charitable con- 10 tribution of hand sanitizer, paragraph (3) of 11 section 170(e) of such Code shall be applied to 12 such contribution without regard to whether the 13 contribution is made by a C corporation. 14 (B) CONTRIBUTIONS OF HAND SANITIZER 15 TO FOR-PROFIT ENTITIES.—In the case of a 16 charitable contribution of hand sanitizer, dona- 17 tions to for-profit hospitals, nursing homes, sen- 18 ior care facilities, and businesses deemed essen- 19 tial by local, State, or Federal Governments will 20 be treated as qualified contributions under sec- 21 tion 170(e)(3) of such Code. 22 (C) DETERMINATION OF FAIR MARKET 23 VALUE.—In the case of any contribution of 24 hand sanitizer which cannot or will not be sold 25 VerDate Sep 11 2014 21:39 Apr 21, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H6498.IH H6498 lotter on DSK9F5VC42PROD with BILLS 5 •HR 6498 IH by reason of being produced by the taxpayer ex- 1 clusively for the purposes of transferring the 2 hand sanitizer to an organization described in 3 section 170(e)(3)(A) of such Code, the fair 4 market value of such contribution shall be de- 5 termined— 6 (i) by taking into account the price at 7 which the same or substantially the same 8 items (as to both type and quality) are sold 9 by the taxpayer at the time of the con- 10 tribution (or, if not so sold at such time, 11 in the recent past), or, if produced solely 12 for donation, by taking into account the 13 price at which the same or substantially 14 the same items are sold on the open mar- 15 ket. 16 (3) DISTILLED SPIRITS OPERATION.—The term 17 ‘‘distilled spirits operation’’ has the meaning given 18 such term in section 5002(a)(2) of such Code. 19 (4) HAND SANITIZER.—For purposes of this 20 section, the term ‘‘hand sanitizer’’ means any anti- 21 septic rub manufactured in accordance with the fol- 22 lowing Food and Drug Administration regulations 23 and guidelines: 24 VerDate Sep 11 2014 01:52 Apr 21, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H6498.IH H6498 lotter on DSK9F5VC42PROD with BILLS 6 •HR 6498 IH (A) ‘‘Safety and Effectiveness of Consumer 1 Antiseptic Rubs; Topical Antimicrobial Drug 2 Products for Over-the-Counter Human Use’’, 3 published on April 12, 2019 (or any successor 4 regulation). 5 (B) ‘‘Policy for Temporary Compounding 6 of Certain Alcohol-Based Hand Sanitizer Prod- 7 ucts During the Public Health Emergency’’, 8 published March 27, 2020 (or any successor 9 regulation). 10 (C) Any other policy of the Food and Drug 11 Administration authorizing the production of 12 hand sanitizer or antiseptic rub. 13 (d) REGULATIONS.—The Secretary of the Treasury 14 (or the Secretary’s delegate) shall prescribe such regula- 15 tions or other guidance as may be necessary to carry out 16 the purposes of this section. 17 (e) EFFECTIVE DATE.—This section shall apply to 18 qualified contributions of hand sanitizer made in taxable 19 years beginning after December 31, 2019, and before Jan- 20 uary 1, 2021. 21 Æ VerDate Sep 11 2014 01:52 Apr 21, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\H6498.IH H6498 lotter on DSK9F5VC42PROD with BILLS