Kelly introduces Charitable Deductions for Digital Asset Donations Act

WASHINGTON, D.C. -- Today, U.S. Rep. Mike Kelly (R-PA), Chairman of the Ways & Means Subcommittee on Tax, introduced H.R. 9173, the "Charitable Deductions for Digital Asset Donations Act," legislation that would allow for digital assets to be eligible for charitable contributions.

Many important tax rules that apply to traditional financial assets do not apply because they do not fit the definitions written for traditional financial assets.

"As more Americans begin to use digital assets, such as cryptocurrencies, it's important to modernize the way Americans can donate to causes and organizations that matter to them. This change will enable more Americans to support churches, charities, and nonprofits that serve the most vulnerable," said Rep. Kelly.

Simply advancing parity and neutrality for digital assets will modernize the tax code, reduce unnecessary administrative burdens, and encourage greater charitable giving to the organizations that serve families and communities across the country.

BACKGROUND

The Charitable Deductions for Digital Asset Donations Act exempts digital asset donations from the qualified appraisal requirements if the donated property meets certain criteria designed to ensure that the value of the donation can be determined based on reliable market prices.

This bill not only simplifies the process around contributions of digital assets but also provides parity between digital assets and other financial instruments without granting special treatment.

You can find bill text here.