Jan 22, 2010
Relief for Haiti, Incentives for Taxpayers
Quick, bi-partisan legislation allows donations to Haiti relief to be claimed on 2009 taxes returns
Reacting quickly to the Haiti Relief effort, the House and Senate have passed legislation, HR 4462, meant to encourage donations for Haiti earthquake relief efforts. This legislation allows individuals to claim on their 2009 tax returns, a donation made in 2010 for Haiti earthquake relief. The President signed the bill into law on Friday, January 22nd.
Potentially in addition to HR 4462, Senators Charles Schumer (D-NY) and Kirsten Gillibrand (D-NY), have stated their interest in introducing legislation that would temporarily eliminate the 50% deductibility limit for individuals donating to earthquake relief, similar to legislation passed after Hurricane Katrina to encourage additional donations. Currently individuals are allowed to deduct up to 50% of their adjusted gross income in one year. This legislation would also extend the enhanced deduction for charitable food inventory contributions through 2010, which allows companies to deduct the market value of their donation, as opposed to just the cost to produce the food.