Summary

Creates a new tax rule letting people and organizations claim a charitable deduction when they donate the use of real property (and connected equipment) or a vehicle to qualifying community learning centers for educational purposes. The deduction equals the fair rental value of that use and is not subject to two existing deduction limits in the tax code; the change applies to taxable years beginning after enactment.

Key Points

• Allows donors to deduct the fair rental value when they donate use of real property (and related equipment) or vehicles to qualifying community learning centers.
• Defines qualifying contributions as the use of property or vehicles tied to a center’s educational purpose; valuation is based on fair rental value for the taxable year.
• Exempts these donated-use deductions from two specific limits in the Internal Revenue Code (26 U.S.C. §170(e)(1) and §170(f)(3)(A)).
• References existing definitions: eligible organizations are those described in 26 U.S.C. §170(c) that meet the ESEA definition of a community learning center.
• Applies to taxable years beginning after enactment; donors must substantiate and value the donated use for each tax year.
• Aims to increase access to after-school programming by lowering the cost barrier for space, equipment, and transportation contributions.
• Will likely require IRS guidance on valuation and documentation standards to prevent abuse and ensure consistent treatment.
• May reduce federal tax revenue to the extent donors claim these additional deductions.
• Does not create new grant programs or direct federal funding; it only changes tax treatment for certain in-kind contributions.

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