To amend the Internal Revenue Code of 1986 to provide taxpayers a tax check-off to designate certain annual contributions to the Armed Forces Relief Trust for an above-the-line deduction not to exceed $1,000, and for other purposes.

July 29, 2005

Ms. LANDRIEU introduced the following bill; which was read twice and referred to the Committee on Finance

To amend the Internal Revenue Code of 1986 to provide taxpayers a tax check-off to designate certain annual contributions to the Armed Forces Relief Trust for an above-the-line deduction not to exceed $1,000, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Emergency Relief Tax Check-Off for Our Armed Forces Act of 2005'.

SEC. 2. FINDINGS AND PURPOSE.

(a) Findings- Congress finds the following:

(1) A significant number of America's military service men and women and their immediate families have suffered severe economic hardships as a result of injuries sustained in the course of their service.

(2) The various military relief societies have provided essential support for military members facing economic hardship.

(3) The numbers and needs of United States service members and their families far exceed the resources available to these military relief societies.

(4) The American people strongly support the creation of a tax check-off on their annual Federal tax return devoted to emergency relief for members of the Armed Forces and their families.

(b) Purpose- It is the purpose of this Act to bring greater awareness of the personal and financial hardships of members of the Armed Forces of the United States, military retirees, and veterans, as well as their family members, as they serve our Nation and to provide a mechanism which will enable taxpayers to contribute in an effort to alleviate such hardships.

SEC. 3. TAX CHECK-OFF FOR CERTAIN CONTRIBUTIONS TO ARMED FORCES RELIEF TRUST.

(a) Tax Check-Off-

(b) In General- In the case of an individual, with respect to each taxpayer's return for the taxable year of the tax imposed by chapter 1, such individual may designate that a contribution has been made for such taxable year to the Armed Forces Relief Trust.

(c) Manner and Time of Designation- A designation under paragraph (1) may be made with respect to any taxable year only at the time of filing the return of the tax imposed by chapter 1 for such taxable year. Such designation shall be made in such manner as the Secretary prescribes by regulations except that such designation shall be made on the first page of the return in the area below the designation for income tax payments to the Presidential Election Campaign Fund.

(d) Explanation of Tax Treatment of Contributions to Armed Forces Relief Trust- The Secretary shall provide taxpayers with an explanation that an above-the-line deduction under section 62(a)(22) of the Internal Revenue Code of 1986 is allowed for any taxable year with respect to any contribution designated under paragraph (1) for such taxable year in an amount not to exceed $1,000, that any amount of such contribution in excess of $1,000 may be taken as an additional deduction for such taxable year by any taxpayer who itemizes deductions, and that such above-the-line deduction is not includible in the determination of the alternative minimum tax under section 55 of such Code.

SEC. 4. ABOVE-THE-LINE DEDUCTION.

Section 62(a) of the Internal Revenue Code of 1986 (defining adjusted gross income) is amended by redesignating paragraph (20) (as added by section 703(a) of the American Jobs Creation Act of 2004) as paragraph (21) and by inserting after paragraph (21) (as so redesignated) the following new paragraph:

`(v) Certain Contributions to Armed Forces Relief Trust- The deduction allowed by section 170 which is attributable to contributions to the Armed Forces Relief Trust not in excess of $1,000.'.

SEC. 5. TREATMENT OF CHARITABLE CONTRIBUTIONS TO ARMED FORCES RELIEF TRUST.

(a) In General- Notwithstanding any other provision of law, any contribution made by any of the societies associated with the Armed Forces Relief Trust shall not be commingled with any charitable contribution made to the Trust Fund for which a deduction under section 170 of the Internal Revenue Code of 1986 is allowable.

(b) Administration of Charitable Contributions- The administration and distribution of any charitable contributions described in paragraph (1) shall be made by the Armed Forces Relief Trust subject to the advice of a board of directors the establishment and operation of which is determined under section 6.

SEC. 6. ADVISORY BOARD OF DIRECTORS.

(a) Appointment-

(1) IN GENERAL- Within the Armed Forces Relief Trust there is established an advisory board of directors the members of which are appointed as follows:

(A) One individual appointed by the Chairman of the Committee on Finance of the Senate.

(B) One individual appointed by the Chairman of the Committee on Armed Services of the Senate.

(C) One individual appointed by the Chairman of the Committee on Veterans' Affairs of the Senate.

(D) One individual appointed by the Chairman of the Committee on Appropriations of the Senate.

(E) One individual appointed by the Chairman of the Joint Committee on Taxation.

(F) One individual appointed by the Chairman of the Committee on Armed Services of the House of Representatives.

(G) One individual appointed by the Chairman of the Committee on Veterans' Affairs of the House of Representatives.

(H) One individual appointed by the Chairman of the Committee on Appropriations of the House of Representatives.

(I) One individual appointed by the President from each of the following: the Army Emergency Relief Society, the Navy Marine Corps Relief Society, the Air Force Aid Society, and the Coast Guard Mutual Assistance Relief Society.

(J) Two individuals appointed by the President from 2 veterans service organizations.

(2) TERM- The term of each member of the advisory board shall be 3 years, except that any member whose term of office has expired shall continue to serve until such member's successor is appointed. No member shall serve more than two 3-year terms.

(3) APPOINTMENT OF SUCCESSORS- The appointment of any successor member shall be made in the same manner as the original appointment. If a member dies or resigns before the expiration of the member's term, a successor shall be appointed for the unexpired portion of the term in the same manner as the original appointment.

(4) PROHIBITION- No member of the advisory board may be an employee of the Federal Government.

(b) Chairman; Vice Chairman-

(1) DESIGNATION- The President shall designate a chairman for the advisory board. The advisory board shall not later than its second meeting, by majority vote, designate a vice chairman, who shall perform the duties of the chairman in the absence of the chairman.

(2) DUTIES OF CHAIRMAN- The chairman shall call the meetings of the advisory board, propose meeting agendas, chair the meetings, and establish, with the approval of a majority of the members, the rules and procedures for such meetings.

(c) Operations of the Board- The advisory board shall meet semi-annually, for the purpose of providing ongoing advice to the Armed Forces Relief Trust regarding the distribution of contributed funds, policies governing said distribution, and the administrative costs and operations of the Armed Forces Relief Trust. A majority of the members shall constitute a quorum. Advisory board members shall serve without compensation. While performing duties as a member of the advisory board, each member shall be reimbursed under Federal Government travel regulations for travel expenses. Such reimbursements and any other reasonable expenses of the advisory board shall be provided by the budget of the Executive Office of the President.

(d) Audit- The General Accountability Office shall audit the distribution and management of funds of the Armed Forces Relief Trust on an annual basis to ensure compliance with statutory and administrative directives. The Comptroller General of the United States shall report to the advisory board and Congress on the results of such audit.

(e) Reports- Within 60 days after its semi-annual meeting, the advisory board shall submit a written report to the President of its action, and of its views and recommendations. Any report other than the semi-annual report, shall, if approved by a majority of the members of the advisory board, be submitted to the President within 60 days after such approval.

SEC. 7. EFFECTIVE DATE.

The amendments made by this Act shall apply to taxable years beginning after December 31, 2004.

END