Charitable Deductions for Digital Asset Donations Act
- Bill Number
- H.R. 9173
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-06-08: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-06-10T16:32:10Z
AI-Generated Summary
Purpose This legislation aims to simplify charitable contribution deductions under the tax code by removing the need for formal appraisals when donating certain widely traded digital assets to qualified organizations.
Key Provisions
- Exception from appraisal rules: Amends Internal Revenue Code section 170(f)(11) to treat widely traded digital assets like publicly traded securities, exempting them from the qualified appraisal requirement for contributions valued above certain thresholds.
- New definitions added: Introduces detailed terms in section 7701, including:
- Digital asset: A digital representation of value recorded on a cryptographically secured distributed ledger.
- Traded digital asset: A fungible asset with readily available exchange quotations (excluding certain tokenized assets).
- Widely traded digital asset: A traded asset meeting specific criteria, such as consistent price quotations throughout the prior year, market capitalization exceeding $500 million, and limited ownership concentration by the donor or related parties.
- Additional rules cover wrapped assets, tokenized assets, and qualified U.S. dollar stablecoins, with the Treasury Secretary granted authority to adjust criteria to prevent abuse or ensure reliable pricing.
- Effective date: Applies to taxable years beginning after December 31, 2026.
- Rules of construction: Clarifies that the bill creates no inferences about whether digital assets qualify as securities, commodities, or other legal interests under other laws, and does not affect prior tax periods.
Significant Changes to Existing Law The bill modifies the appraisal mandate for non-cash charitable contributions by carving out an exception for qualifying digital assets. It also expands the tax code with comprehensive definitions for digital assets, stablecoins, and related concepts, granting regulatory flexibility to the Treasury Department.
Potential Impacts
- Government agencies: The IRS would need to update forms, guidance, and enforcement procedures to accommodate the new exception and definitions.
- Citizens: Donors of eligible digital assets could claim deductions more easily, potentially increasing charitable giving in this asset class.
- International relations: No direct effects identified in the legislation.
Main Stakeholders Affected
- Taxpayers who donate digital assets to charities.
- Charitable organizations receiving such donations.
- The Internal Revenue Service and Treasury Department.
- Digital asset exchanges and market participants involved in price discovery.
Notable Legal, Constitutional, or Political Implications The measure operates within Congress's authority to set tax rules and does not raise apparent constitutional concerns. It includes safeguards against abuse through Treasury oversight and market capitalization thresholds, while explicitly avoiding broader legal classifications of digital assets.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-06-08: Referred to the House Committee on Ways and Means.
- 2026-06-08: Introduced in House
- 2026-06-08: Introduced in House
Bill Versions
- Charitable Deductions for Digital Asset Donations Act — issued 2026-06-08 — PDF (10 pages)