Section 882 of conference report [650 pages in PDF] on HR 4520 (108th Congress), the "American Jobs Creation Act of 2004", at pages 562-572.
Re: limiting deductions for charitable contributions of intellectual property.


(a) IN GENERAL.—Subparagraph (B) of section 170(e)(1) is amended by striking ‘‘or’’ at the end of clause (i), by adding ‘‘or’’ at the end of clause (ii), and by inserting after clause (ii) the following new clause:

(b) CERTAIN DONEE INCOME FROM INTELLECTUAL PROPERTY TREATED AS AN ADDITIONAL CHARITABLE CONTRIBUTION.—Section 170 is amended by redesignating subsection (m) as subsection (n) and by inserting after subsection (l) the following new subsection:

‘‘Taxable Year of Donor Ending on or After Applicable Date of Contribution:   Percentage:
1st   100
2nd   100
3rd   90
4th   80
5th   70
6th   60
7th   50
8th   40
9th   30
10th   20
11th   10
12th   10

(c) REPORTING REQUIREMENTS.—(1) IN GENERAL.—Section 6050L (relating to returns relating to certain dispositions of donated property) is amended to read as follows:

(d) COORDINATION WITH APPRAISAL REQUIREMENTS.—Subclause (I) of section 170(f)(11)(A)(ii), as added by this Act, is amended by inserting ‘‘subsection (e)(1)(B)(iii) or’’ before ‘‘section 1221(a)(1)’’.

(e) ANTI-ABUSE RULES.—The Secretary of the Treasury may prescribe such regulations or other guidance as may be necessary or appropriate to prevent the avoidance of the purposes of section 170(e)(1)(B)(iii) of the Internal Revenue Code of 1986 (as added by subsection (a)), including preventing—

(f) EFFECTIVE DATE.—The amendments made by this section shall apply to contributions made after June 3, 2004.