Sponsors (3)
The bill makes it easier for community learning centers to obtain temporary donated space and transportation by creating a clearer tax deduction for donors—potentially expanding local educational services—while reducing federal revenue and creating risks and administrative burdens around valuation and enforcement.
Community learning centers can receive donated property or vehicle use (e.g., space, transportation), enabling them to expand educational programming and services for local children and families.
Nonprofit centers and donors can benefit economically because donors may claim a deductible charitable contribution for in-kind, temporary property use valued at fair-market rental value, increasing the likelihood of donations of space or vehicles.
Donors gain clearer tax treatment for temporary property-use gifts to community learning centers, reducing uncertainty about deductibility and encouraging contributions.
All taxpayers bear the cost because allowing these additional deductions reduces federal revenue, which could increase deficits or force cuts to other programs.
The carve-out from existing §170 limits creates a risk that donors could overstate deductions or exploit the rule without strict enforcement, increasing potential abuse and further revenue loss.
Valuing temporary or irregular use at fair-market rental value may create compliance burdens and disputes between donors/nonprofits and the IRS over valuation, increasing administrative costs and complexity.
Based on analysis of 2 sections of legislative text.
Creates a new charitable deduction for the fair‑market rental value of donated use of property and vehicles by qualifying community learning centers.
Creates a new charitable deduction allowing taxpayers to deduct the fair-market rental value when they donate use of real property (and related tangible personal property) or a motor vehicle to a qualifying community learning center. The community learning centers must meet the Elementary and Secondary Education Act definition and be organizations described in the Internal Revenue Code as eligible charitable recipients. The deduction is added to the Internal Revenue Code's section on charitable contributions, excludes these donated uses from certain existing limitation rules, and applies to taxable years beginning after the date of enactment.
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