Tax Credit/Deduction for Political Contributions Proposed

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In an effort to encourage more small dollar contributions from individuals, Rep. Tom Petri, R-Wis., introduced on Thursday the Citizens Involvement in Campaigns (CIVIC) Act, which would restore the tax credit and deduction for contributions up to $200 and $600, respectively. Those tax credits and deductions were in place from 1972 through 1986.

Under the bill (H.R. 3586), small donors would be eligible for a federal tax credit of up to $200 ($400 on a joint return) for contributions to candidates for a federal office or to a national political party. Alternatively, a campaign contributor could elect a tax deduction of up to $600 ($1,200 on a joint return).

Topics: campaigns donors