Congress Passes Bill Allowing Cash Contributions for Haitian Earthquake Relief Made in January and February Deductible on 2009 Returns

In response to the earthquake in Haiti, Congress has unanimously enacted the Haitian Assistance Income Tax Relief Act.  That bill contains three provisions that apply to contributions for Haitian earthquake relief.  Taxpayers may elect to treat any contribution made after January 11, 2010 and before March 1, 2010 as if it were made on December 31, 2009.  To qualify the contributions must be made in cash, has to be made for the relief of victims in the areas affected by the earthquake in Haiti on January 12, 2010 and for which a charitable contribution is allowed under IRC §170.

The bill also provides that for the above contributions, the documentation requirements for a charitable contribution described in this bill will be deemed satisfied with a telephone bill showing the name of the done organization, the date of the contribution and the amount of the contribution, in addition to the normal documentation options required for contributions under §170.

Whether or not Arizona will conform with this treatment remain to be seen.  The fact it passed both houses of Congress unanimously suggests the Arizona Legislature will conform, but Arizona’s budget problem may complicate putting this into the law depending on what the provision’s cost would be to the state.

Advertisement