December 9, 2019 - Issue: Vol. 165, No. 196 — Daily Edition116th Congress (2019 - 2020) - 1st Session
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VIRGINIA BEACH STRONG ACT; Congressional Record Vol. 165, No. 196
(House of Representatives - December 09, 2019)
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[Pages H9364-H9366] From the Congressional Record Online through the Government Publishing Office [www.gpo.gov] VIRGINIA BEACH STRONG ACT Ms. SEWELL of Alabama. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 4566) to accelerate [[Page H9365]] the income tax benefits for charitable cash contributions for the relief of the families of victims of the mass shooting in Virginia Beach, Virginia, on May 31, 2019. The Clerk read the title of the bill. The text of the bill is as follows: H.R. 4566 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Virginia Beach Strong Act''. SEC. 2. SPECIAL RULES FOR CONTRIBUTIONS FOR RELIEF OF THE FAMILIES OF THE MASS SHOOTING IN VIRGINIA BEACH. (a) Clarification That Contribution Will Not Fail To Qualify as a Charitable Contribution.--A cash contribution made for the relief of the families of the dead or wounded victims of the mass shooting in Virginia Beach, Virginia, on May 31, 2019, shall not fail to be treated as a charitable contribution for purposes of section 170 of the Internal Revenue Code of 1986 merely because such contribution is for the exclusive benefit of such families. The preceding sentence shall apply to contributions made on or after May 31, 2019. (b) Clarification That Payments by Charitable Organizations to Families Treated as Exempt Payments.--For purposes of the Internal Revenue Code of 1986, payments made on or after May 31, 2019, and on or before June 1, 2021, to the spouse or any dependent (as defined in section 152 of such Code) of the dead or wounded victims of the mass shooting in Virginia Beach, Virginia, on May 31, 2019, by an organization which (determined without regard to any such payments) would be an organization exempt from tax under section 501(a) of such Code shall-- (1) be treated as related to the purpose or function constituting the basis for such organization's exemption under such section; and (2) shall not be treated as inuring to the benefit of any private individual, if such payments are made in good faith using a reasonable and objective formula which is consistently applied with respect to such victims. The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from Alabama (Ms. Sewell) and the gentleman from Nebraska (Mr. Smith) each will control 20 minutes. The Chair recognizes the gentlewoman from Alabama. General Leave Ms. SEWELL of Alabama. Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks and include extraneous materials on the bill under consideration. The SPEAKER pro tempore. Is there objection to the request of the gentlewoman from Alabama? There was no objection. Ms. SEWELL of Alabama. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise today in strong support of the Virginia Beach Strong Act, a bill authored by my friend and colleague from Virginia, Congresswoman Elaine Luria, to ensure that donations to the victims of the Virginia Beach shooting are tax deductible. Mr. Speaker, the Virginia Beach community experienced unspeakable tragedy earlier this year when a mass shooting at the Virginia Beach Municipal Center resulted in the deaths of 12 people. In the face of this terrible tragedy, leaders throughout the city came together and quickly established a fund to support victims, survivors, and their families. The outpouring of support from the community was profound, with over $4 million in donations to the fund. Mr. Speaker, unfortunately, these donations are arguably not considered tax deductible charitable contributions because they are divided among specified individuals rather than an organization. A technical fix in the Tax Code would address this issue. This legislation before us today would fix this issue for the Virginia Beach Tragedy Fund and ensure that these donations are tax deductible. While nothing can reverse the pain of this terrible tragedy, the bipartisan, commonsense bill before us today is an important step toward helping the victims and their families and incentivizing further contributions to the fund. I am proud to stand with the Virginia Beach community in support of this legislation. Mr. Speaker, I urge all of my colleagues to support this important legislation, and I reserve the balance of my time. Mr. SMITH of Nebraska. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, as we know, a senseless act of violence struck the Virginia Beach community on May 31 of this year. A disgruntled city employee, for no apparent reason other than he may have been offended by some negative reviews of his job performance, walked into a public works building in Virginia Beach an hour before closing and opened fire on innocent and defenseless people, killing 12 and injuring 6 others. These kinds of events are hard to understand, but it is great to see the community reach out and help. We know that there are always many folks who help around these communities when it is so obvious, and, when confronted with tragedy, they always respond with bravery and generosity. In acknowledging the bravery of helpers, we would be remiss if we do not honor the first police officers who arrived on the scene, who ran toward danger instead of away from it. They took down the mass murderer before he could cause even more bloodshed. In the process, one of their own was injured in the firefight, his life spared only by a bulletproof vest. The bill we are considering and, hopefully, passing today is about another set of those who helped, those who also responded with generosity. As was the case with many other tragic events in our history, a special fund was set up to help the victims of the May 31 shooting. Under normal tax rules, a special fund like this raises at least three questions: First, are the payments to these victims from the special fund subject to taxes? Second, since charities are not supposed to operate for the benefit of special individuals, would payments to a relatively small number of individuals destroy the tax-exempt status of any charity or foundation administering the victims' fund? And third, are donations to the special fund for victims eligible for a charitable tax deduction? The Virginia Beach Strong Act ensures the answers to these questions match what common sense tells us they should be: No, victims of the Virginia Beach shooting and their families will not be taxed on these payments to provide some financial relief for the harm caused by horrors they suffered. No, these payments will not threaten the tax-exempt status of organizations which make the payments to victims and their families. And, lastly, yes, donations to the Virginia Beach Tragedy Fund will be eligible for the charitable tax deduction. Mr. Speaker, this is our opportunity to be assisting those who need help, as well as by clarifying the tax questions of victims, donors, and charitable organizations. This should be actually considered as a no-brainer. Mr. Speaker, I urge my colleagues to support the Virginia Beach Strong Act, and I reserve the balance of my time. Ms. SEWELL of Alabama. Mr. Speaker, I yield 5 minutes to the gentlewoman from Virginia (Mrs. Luria). Mrs. LURIA. Mr. Speaker, today I rise in support of my bipartisan and bicameral bill, H.R. 4566, the Virginia Beach Strong Act. Just over 6 months ago, our Virginia Beach community suffered a devastating tragedy. On May 31, 12 wonderful people lost their lives in a mass shooting in the Virginia Beach Municipal Center. During our great city's darkest hour, we showed the world the strength and resolve that makes us Virginia Beach Strong. We saw first responders heroically running into building 2, sacrificing their safety to save others; doctors working long hours to provide victims with expert care; and many other displays of courage. May 31, 2019, was a day that will change Virginia Beach forever. We will always remember the 12 individuals we lost that day and their irreplaceable contributions to our Virginia Beach Strong community. My heart continues to grieve for those who lost their lives, their families, and everyone who loved them. Today, many families of the victims are still facing financial hardships related to the shooting, in addition to the unfathomable loss of a loved one. [[Page H9366]] In the aftermath of May 31, the city of Virginia Beach established a fund to help victims, survivors, and their families. Unfortunately, a technicality in the Tax Code means that these donations will likely not be considered tax deductible. That is why I introduced the Virginia Beach Strong Act. The Virginia Beach Strong Act would make it easier to help bring urgently needed support to our community's grieving families. This bipartisan bill would ensure that all donations made to immediate family members of the victims on or after May 31 will be considered tax deductible. It is narrowly written so it does not make any broader changes to our Tax Code or to the nonprofit status. Today, we all have the opportunity to make a profound difference for the families that have been through unimaginable pain following the Virginia Beach mass shooting. Mr. Speaker, I want to thank my colleagues in the Virginia delegation for their support, and I urge all of my colleagues to vote for H.R. 4566, the Virginia Beach Strong Act. Mr. SMITH of Nebraska. Mr. Speaker, just to add emphasis to the reason why we are here: We appreciate those around the community and, actually, probably around the country who want to help, certainly, victims in need, and I would hope that we would adjust our tax policy accordingly, certainly to perhaps meet expectations that could not otherwise be met, but also to encourage others to contribute as well. Mr. Speaker, I yield back the balance of my time. Ms. SEWELL of Alabama. Mr. Speaker, in closing, we must take action to fix the tax deductibility of these donations to the Virginia Beach Tragedy Fund, which has done so much to help the community recover from this unspeakable tragedy. Mr. Speaker, I wish to express my profound condolences and also congratulate Mrs. Luria on this wonderful piece of legislation that will truly benefit those who were tragically lost and their families, as well as first responders. Mr. Speaker, I urge every Member to support this important legislation. It is truly bicameral and bipartisan and deserves to pass. I support this legislation. Mr. Speaker, I yield back the balance of my time. The SPEAKER pro tempore. The question is on the motion offered by the gentlewoman from Alabama (Ms. Sewell) that the House suspend the rules and pass the bill, H.R. 4566. The question was taken; and (two-thirds being in the affirmative) the rules were suspended and the bill was passed. A motion to reconsider was laid on the table. ____________________
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