Page:United States Statutes at Large Volume 112 Part 4.djvu/1001

 PUBLIC LAW 105-285—OCT. 27, 1998 112 STAT. 2733 "(A) CHARITY TAX CREDIT.— The term 'charity tax credit' means a nonrefundable credit against State income tax (or, in the case of a State that does not impose an income tax, a comparable benefit) that is allowable for contributions, in cash or in kind, to qualified charities. "(B) QUALIFIED CHARITY. — "(i) IN GENERAL. — The term 'quahfied charity' means any organization— "(I) that is— "(aa) described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code; "(bb) an eligible entity; or "(cc) a public housing agency as defined in section 3(D)(6) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(6)); "(II) that is certified by the appropriate State authority as meeting the requirements of clauses (iii) and (iv); and "(III) if such organization is otherwise required to file a return under section 6033 of such Code, that elects to treat the information required to be furnished by clause (v) as being specified in section 6033(b) of such Code. " (ii) CERTAIN CONTRIBUTIONS TO COLLECTION ORGANIZATIONS TREATED AS CONTRIBUTIONS TO QUALI- FIED CHARITY.— "(I) IN GENERAL.—^A contribution to a collection organization shall be treated as a contribution to a qualified charity if the donor designates in writing that the contribution is for the qualified charity. "(II) COLLECTION ORGANIZATION.—The term 'collection organization' means an organization described in section 501(c)(3) of such Code and exempt from tax under section 501(a) of such Code— "(aa) that solicits and collects gifts and grants that, by agreement, are distributed to qualified charities; "(bb) that distributes to qualified charities at least 90 percent of the gifts and grants the organization receives that are designated for such qualified charities; and "(cc) that meets the requirements of clause (vi). "(iii) CHARITY MUST PRIMARILY ASSIST POOR INDIVIDUALS. — "(I) IN GENERAL.— An orggmization meets the requirements of this clause only if the appropriate State authority reasonably expects that the predominant activity of such organization will be the provision of direct services within the United States to individuals and families whose annual incomes generally do not exceed 185 percent of the poverty line in order to prevent or alleviate poverty among such individuals and families.

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