Sponsors (3)
The bill encourages donations of temporary property use to community learning centers—potentially expanding services for children—by allowing fair-market rental-value deductions, but it reduces federal revenue and raises risks of inflated claims and administrative disputes that could burden taxpayers and nonprofits.
Donors (individuals and businesses) and nonprofit community learning centers can claim deductions for temporary in-kind gifts of property or vehicle use based on fair-market rental value, making donated space/transportation more financially attractive and increasing resources for centers.
Children and families served by community learning centers may gain expanded access to educational programming and transportation when centers receive donated space or vehicles.
Donors and nonprofit administrators get clearer tax guidance for temporary property-use gifts, reducing uncertainty about deductibility for these specific donations.
All taxpayers bear the cost of reduced federal revenue from expanded deductions, which could increase deficits or force cuts/offsets in other programs.
The provision creates an opportunity to overstate deductions by treating partial-year or irregular use at full fair-market rental value, risking abuse or inflated charitable claims absent strong enforcement.
Valuing fair-market rental rates for temporary or irregular property use may produce compliance burdens and disputes between donors, nonprofits, and the IRS over valuation and recordkeeping.
Based on analysis of 2 sections of legislative text.
Allows a charitable deduction equal to annual fair-market rental value when donors let qualifying community learning centers use property or vehicles.
Official title: To amend the Internal Revenue Code of 1986 to provide a charitable deduction for the contribution of the use of certain property by community learning centers.
Introduced January 15, 2026 by Sharice Davids · Last progress January 15, 2026
Creates a new tax deduction rule letting donors claim the fair-market rental value when they allow community learning centers to use their real property, related tangible personal property, or motor vehicles for afterschool programs. Defines eligible community learning centers by reference to existing tax-exempt organizations that meet the Elementary and Secondary Education Act definition and applies to taxable years after enactment.