118 STAT. 1628 PUBLIC LAW 108–357—OCT. 22, 2004 170 is amended by redesignating subsection (m) as subsection (n) and by inserting after subsection (l) the following new subsection: ‘‘(m) CERTAIN DONEE INCOME FROM INTELLECTUAL PROPERTY TREATED AS AN ADDITIONAL CHARITABLE CONTRIBUTION.— ‘‘(1) TREATMENT AS ADDITIONAL CONTRIBUTION.—In the case of a taxpayer who makes a qualified intellectual property con tribution, the deduction allowed under subsection (a) for each taxable year of the taxpayer ending on or after the date of such contribution shall be increased (subject to the limitations under subsection (b)) by the applicable percentage of qualified donee income with respect to such contribution which is prop erly allocable to such year under this subsection. ‘‘(2) REDUCTION IN ADDITIONAL DEDUCTIONS TO EXTENT OF INITIAL DEDUCTION.—With respect to any qualified intellectual property contribution, the deduction allowed under subsection (a) shall be increased under paragraph (1) only to the extent that the aggregate amount of such increases with respect to such contribution exceed the amount allowed as a deduction under subsection (a) with respect to such contribution deter mined without regard to this subsection. ‘‘(3) QUALIFIED DONEE INCOME.—For purposes of this sub section, the term ‘qualified donee income’ means any net income received by or accrued to the donee which is properly allocable to the qualified intellectual property. ‘‘(4) ALLOCATION OF QUALIFIED DONEE INCOME TO TAXABLE YEARS OF DONOR.—For purposes of this subsection, qualified donee income shall be treated as properly allocable to a taxable year of the donor if such income is received by or accrued to the donee for the taxable year of the donee which ends within or with such taxable year of the donor. ‘‘(5) 10 YEAR LIMITATION.—Income shall not be treated as properly allocable to qualified intellectual property for purposes of this subsection if such income is received by or accrued to the donee after the 10 year period beginning on the date of the contribution of such property. ‘‘(6) BENEFIT LIMITED TO LIFE OF INTELLECTUAL PROP ERTY.—Income shall not be treated as properly allocable to qualified intellectual property for purposes of this subsection if such income is received by or accrued to the donee after the expiration of the legal life of such property. ‘‘(7) APPLICABLE PERCENTAGE.—For purposes of this sub section, the term ‘applicable percentage’ means the percentage determined under the following table which corresponds to a taxable year of the donor ending on or after the date of the qualified intellectual property contribution: ‘‘Taxable Year of Donor Ending on or After Applicable Date of Contribution: Percentage: 1st .................................................................................................................... 100 2nd ................................................................................................................... 100 3rd .................................................................................................................... 90 4th .................................................................................................................... 80 5th .................................................................................................................... 70 6th .................................................................................................................... 60 7th .................................................................................................................... 50 8th .................................................................................................................... 40 9th .................................................................................................................... 30 10th .................................................................................................................. 20 11th .................................................................................................................. 10 12th .................................................................................................................. 10.
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