The $650 billion tax-cut measure the House of Representatives overwhelmingly approved Thursday made several charitable tax incentives permanent.
These incentives had been among dozens of tax provisions that had been extended every couple of years, much to the dismay of nonprofit organizations seeking consistency.
The Senate was expected to approve the bill as early as Friday, and President Barack Obama was expected to sign it.
The legislation would make these charitable tax incentives permanent:
— The IRA charitable rollover will allow individuals at least 70-1/2 years old to make tax-free charitable donations up to $100,000 from individual retirement accounts
— The deduction for conservation easements will allow land owners to reduce their taxable income by giving up development rights to their property for purposes of preserving natural resources
— The enhanced deduction for donating food inventory will allow individuals and organizations to reduce their taxable income by providing qualifying food inventory to certain charitable organizations
The tax package resulted from negotiations between the White House and Capitol Hill. The two parties had started the year at loggerheads about charitable tax breaks.