DEDUCTION IN LIEU OF CREDIT.

SEC. 702. DEDUCTION IN LIEU OF CREDIT. (a) Part VII of subchapter B of chapter 1 (relating to additional itemized deductions for individuals) is amended by redesignating section 218 as 219, and by inserting after section 217 the following new section: “SEC. 218. CONTRIBUTIONS TO CANDIDATES FOR PUBLIC OFFICE. “(a) Allowance of Deduction—In the case of an individual, there shall lie allowed as a deduction any political contribution (as defined 85 Stat. 562in section 41(c)(1)) payment of which is made by such individual within the taxable year. “(b) Limitations— “(1) Amount—The deduction under subsection (a) shall not exceed $50 ($100 in the case of a joint return under section 6013). “(2) Verification—The deduction under subsection (a) shall be allowed, with respect to any political contribution, only if such political contribution is verified in such manner as the Secretary or his delegate shall prescribe by regulations. “(c) Election To Take Credit in Lieu of Deduction—This section shall not apply in the case of any taxpayer who, for the taxable year, elects to take the credit against tax provided by section 41 (relating to credit against tax for contributions to candidates for public office). Such election shall be made in such manner and at such time as the Secretary or his delegate shall prescribe by regulations. “(d) Cross Reference— “For disallowance of deduction to estates and trusts, see section 642(i).” (b) Section 642 (relating to special rules for credits and deductions for estates and trusts) is amended by redesignating subsection (i) as subsection (j), and by inserting after subsection (h) a new subsection as follows: “(i) Political Contributions—An estate or trust shall not be allowed the deduction for contributions to candidates for public office provided by section 218.” (c) The table of sections of part VII of subchapter B of chapter 1 is amended by striking out the last item and inserting in lieu thereof the following: “. 218. Contributions to candidates for public office. “. 219. Cross references”.