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May 21, 2008

House of Representatives Passes Giving Incentive

The U.S. House of Representatives on Wednesday passed a bill that would renew a tax break that encourages older Americans to give money from their individual retirement accounts to nonprofit causes.

Until December 31 of last year, donors age 70½ or older were able to transfer up to $100,000 to charity from their individual retirement accounts each year without paying income taxes on the money.

Members of Congress have been working to revive the tax break, and the House on Wednesday approved legislation that would extend the break for one year, from January 1, 2008, through December 31.

Before the bill passed the House Ways and Means Committee, a Democratic member of the committee unsuccessfully proposed shaping the measure to encourage colleges to lower their tuition costs.

Rep. Peter F. Welch, from Vermont, wanted to forbid colleges from receiving IRA rollover gifts if the institutions were not using their endowments to reduce tuition for needy students or to help veterans attend.

— Grant Williams

Wednesday May 21, 2008 | Permalink

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