Grassley legislation woul d make Tsunami donations deductible in ’04

People who give money for Tsunami relief in January will be able to deduct those contributions from their 2004 tax returns under a plan being introduced in the Senate by Republican Senators Chuck Grassley of Iowa and Democrat Max Baucus of Montana. Under current law, taxpayers would have to wait until the spring of 2006 to claim a donation for tsunami relief donations made after December 31st, 2004. He says, “I know there’s been an outpouring of support by private Americans and corporations for this catastrophe. But, this will give an opportunity and an incentive to get more money up front that maybe otherwise might come later and do less good.” Some state lawmakers say they may also look into a similar measure for deductions on state income taxes.