In this sixth installment of my multi-part series on the One Big Beautiful Bill Act (the “Act”), I discuss a provision of the Act that impacts the deductibility of corporate charitable gifts under Code Section 170(b)(2)(A).[1]
Background
The rules surrounding the deductibility of charitable contributions made by C corporations are straightforward. In general, corporations are allowed to deduct charitable contributions. The deduction, however, cannot exceed 10% of a corporation’s taxable income for the taxable year, computed without regard to the charitable contribution (the “Ceiling”). Contributions in excess of the Ceiling may be carried forward for up to five years. Code Section 170(b)(2).
The rules sound simple enough. Unfortunately, the Act increases the complexity of the subject matter.