I.R.C. § 501(a) Exemption From Taxation —
I.R.C. § 501(b) Tax On Unrelated Business Income And Certain Other Activities —
An organization exempt from taxation under subsection
(a) shall be subject to tax to the extent provided in parts II, III, and VI of this
subchapter, but (notwithstanding parts II, III, and VI of this subchapter) shall
be considered an organization exempt from income taxes for the purpose of any law
which refers to organizations exempt from income taxes.
I.R.C. § 501(c) List Of Exempt Organizations —
The following organizations are referred to in subsection
(a):
I.R.C. § 501(c)(1) —
Any corporation organized under Act of Congress which is an instrumentality of the
United States but only if such corporation—
I.R.C. § 501(c)(1)(A) —
is exempt from Federal income taxes—
I.R.C. § 501(c)(1)(A)(i) —
under such Act as amended and supplemented before July 18, 1984, or
I.R.C. § 501(c)(1)(A)(ii) —
under this title without regard to any provision of law which is not contained in
this title and which is not contained in a revenue Act, or
I.R.C. § 501(c)(1)(B) —
is described in subsection (l).
I.R.C. § 501(c)(2) —
Corporations organized for the exclusive purpose of holding title to property, collecting
income therefrom, and turning over the entire amount thereof, less expenses, to an
organization which itself is exempt under this section. Rules similar to the rules
of subparagraph (G) of paragraph (25) shall apply for purposes of this paragraph.
I.R.C. § 501(c)(3) —
Corporations, and any community chest, fund, or foundation, organized and operated
exclusively for religious, charitable, scientific, testing for public safety, literary,
or educational purposes, or to foster national or international amateur sports competition
(but only if no part of its activities involve the provision of athletic facilities
or equipment), or for the prevention of cruelty to children or animals, no part of
the net earnings of which inures to the benefit of any private shareholder or individual,
no substantial part of the activities of which is carrying on propaganda, or otherwise
attempting, to influence legislation (except as otherwise provided in subsection
(h)), and which does not participate in, or intervene in (including the publishing
or distributing of statements), any political campaign on behalf of (or in opposition
to) any candidate for public office.
I.R.C. § 501(c)(4)
I.R.C. § 501(c)(4)(A) —
Civic leagues or organizations not organized for profit but operated exclusively
for the promotion of social welfare, or local associations of employees, the membership
of which is limited to the employees of a designated person or persons in a particular
municipality, and the net earnings of which are devoted exclusively to charitable,
educational, or recreational purposes.
I.R.C. § 501(c)(4)(B) —
Subparagraph (A) shall not apply to an entity unless no part of the net earnings
of such entity inures to the benefit of any private shareholder or individual.
I.R.C. § 501(c)(5) —
Labor, agricultural, or horticultural organizations.
I.R.C. § 501(c)(6) —
Business leagues, chambers of commerce, real-estate boards, boards of trade, or
professional football leagues
(whether or not administering a pension fund for football players), not organized
for profit and no part of the net earnings of which inures to the benefit of any
private shareholder or individual.
I.R.C. § 501(c)(7) —
Clubs organized for pleasure, recreation, and other nonprofitable purposes, substantially
all of the activities of which are for such purposes and no part of the net earnings
of which inures to the benefit of any private shareholder.
I.R.C. § 501(c)(8) —
Fraternal beneficiary societies, orders, or associations—
I.R.C. § 501(c)(8)(A) —
operating under the lodge system or for the exclusive benefit of the members of a
fraternity itself operating under the lodge system, and
I.R.C. § 501(c)(8)(B) —
providing for the payment of life, sick, accident, or other benefits to the members
of such society, order, or association or their dependents.
I.R.C. § 501(c)(9) —
Voluntary employees' beneficiary associations providing for the payment of life,
sick, accident, or other benefits to the members of such association or their dependents
or designated beneficiaries, if no part of the net earnings of such association inures
(other than through such payments) to the benefit of any private shareholder or individual.
For purposes of providing for the payment of sick and accident benefits to members
of such an association and their dependents, the term “dependent” shall
include any individual who is a child (as defined in section 152(f)(1)) of a member who as of the end of the calendar year has not attained age 27.
I.R.C. § 501(c)(10) —
Domestic fraternal societies, orders, or associations, operating under the lodge
system—
I.R.C. § 501(c)(10)(A) —
the net earnings of which are devoted exclusively to religious, charitable, scientific,
literary, educational, and fraternal purposes, and
I.R.C. § 501(c)(10)(B) —
which do not provide for the payment of life, sick, accident, or other benefits.
I.R.C. § 501(c)(11) —
Teachers' retirement fund associations of a purely local character, if—
I.R.C. § 501(c)(11)(A) —
no part of their net earnings inures
(other than through payment of retirement benefits) to the benefit of any private
shareholder or individual, and
I.R.C. § 501(c)(11)(B) —
the income consists solely of amounts received from public taxation, amounts received
from assessments on the teaching salaries of members, and income in respect of investments.
I.R.C. § 501(c)(12)
I.R.C. § 501(c)(12)(A) —
Benevolent life insurance associations of a purely local character, mutual ditch
or irrigation companies, mutual or cooperative telephone companies, or like organizations;
but only if 85 percent or more of the income consists of amounts collected from members
for the sole purpose of meeting losses and
expenses.
I.R.C. § 501(c)(12)(B) —
In the case of a mutual or cooperative telephone company, subparagraph (A) shall
be applied without taking into account any income received or accrued—
I.R.C. § 501(c)(12)(B)(i) —
from a nonmember telephone company for the performance of communication services
which involve members of the mutual or cooperative telephone company,
I.R.C. § 501(c)(12)(B)(ii) —
from qualified pole rentals,
I.R.C. § 501(c)(12)(B)(iii) —
from the sale of display listings in a directory furnished to the members of the
mutual or cooperative telephone company, or
I.R.C. § 501(c)(12)(B)(iv) —
from the prepayment of a loan under section 306A, 306B, or 311 of the Rural Electrification
Act of 1936
(as in effect on January 1, 1987).
I.R.C. § 501(c)(12)(C) —
In the case of a mutual or cooperative electric company, subparagraph (A) shall
be applied without taking into account any income received or accrued—
I.R.C. § 501(c)(12)(C)(i) —
from qualified pole rentals, or
I.R.C. § 501(c)(12)(C)(ii) —
from any provision or sale of electric energy transmission services or ancillary services
if such services are provided on a nondiscriminatory open access basis under
an open access transmission tariff approved or accepted by FERC or under an independent
transmission provider agreement approved or accepted by FERC (other than
income received or accrued directly or indirectly from a member),
I.R.C. § 501(c)(12)(C)(iii) —
from the provision or sale of electric energy distribution services or ancillary services
if such services are provided on a nondiscriminatory open access basis to
distribute electric energy not owned by the mutual or electric cooperative company—
I.R.C. § 501(c)(12)(C)(iii)(I) —
to end-users who are served by distribution facilities not owned by such company
or any of its members (other than income received or accrued directly or indirectly
from a member), or
I.R.C. § 501(c)(12)(C)(iii)(II) —
generated by a generation facility not owned or leased by such company or any of
its members and which is directly connected to distribution facilities owned by such
company or any of its members (other than income received or accrued directly or
indirectly from a member),
I.R.C. § 501(c)(12)(C)(iv) —
from any nuclear decommissioning transaction, or
I.R.C. § 501(c)(12)(C)(v) —
from any asset exchange or conversion transaction.
I.R.C. § 501(c)(12)(D) —
For purposes of this paragraph, the term “qualified pole rental” means
any rental of a pole (or other structure used to support wires) if such pole (or
other structure)—
I.R.C. § 501(c)(12)(D)(i) —
is used by the telephone or electric company to support one or more wires which
are used by such company in providing telephone or electric services to its members,
and
I.R.C. § 501(c)(12)(D)(ii) —
is used pursuant to the rental to support one or more wires (in addition to the
wires described in clause (i)) for use in connection with the transmission by wire
of electricity or of telephone or other communications.
For purposes of the preceding sentence, the term “rental"
includes any sale of the right to use the pole (or other structure).
I.R.C. § 501(c)(12)(E) —
For purposes of subparagraph (C)(ii), the term “FERC” means—
I.R.C. § 501(c)(12)(E)(i) —
the Federal Energy Regulatory Commission, or
I.R.C. § 501(c)(12)(E)(ii) —
in the case of any utility with respect to which all of the electricity generated,
transmitted, or distributed by such utility is generated, transmitted, distributed,
and consumed in the same State, the State agency of such State with the authority
to regulate electric utilities.
I.R.C. § 501(c)(12)(F) —
For purposes of subparagraph (C)(iv), the term “nuclear decommissioning transaction”
means—
I.R.C. § 501(c)(12)(F)(i) —
any transfer into a trust, fund, or instrument established to pay any nuclear decommissioning
costs if the transfer is in connection with the transfer of the mutual or cooperative
electric company's interest in a nuclear power plant or nuclear power plant unit,
I.R.C. § 501(c)(12)(F)(ii) —
any distribution from any trust, fund, or instrument established to pay any nuclear
decommissioning costs, or
I.R.C. § 501(c)(12)(F)(iii) —
any earnings from any trust, fund, or instrument established to pay any nuclear decommissioning
costs.
I.R.C. § 501(c)(12)(G) —
For purposes of subparagraph (C)(v), the term “asset exchange or conversion
transaction” means any voluntary exchange or involuntary conversion of any property
related to generating, transmitting, distributing, or selling electric energy by
a mutual or cooperative electric company, the gain from which qualifies for deferred
recognition under section 1031 or 1033, but only if the replacement property acquired by such company pursuant to such
section constitutes
property which is used, or to be used, for—
I.R.C. § 501(c)(12)(G)(i) —
generating, transmitting, distributing, or selling electric energy, or
I.R.C. § 501(c)(12)(G)(ii) —
producing, transmitting, distributing, or selling natural gas.
I.R.C. § 501(c)(12)(H)
I.R.C. § 501(c)(12)(H)(i) —
In the case of a mutual or cooperative electric company described in this paragraph
or an organization described in section 1381(a)(2)(C), income received or accrued from a load loss transaction shall be treated as an
amount collected from members for the sole purpose of meeting losses and expenses.
I.R.C. § 501(c)(12)(H)(ii) —
For purposes of clause (i), the term “load loss transaction” means any
wholesale or retail sale of electric energy (other than to members) to the extent
that the aggregate sales during the recovery period do not exceed the load loss mitigation
sales limit for such period.
I.R.C. § 501(c)(12)(H)(iii) —
For purposes of clause (ii), the load loss mitigation sales limit for the recovery
period is the sum of the annual load losses for each year of such period.
I.R.C. § 501(c)(12)(H)(iv) —
For purposes of clause (iii), a mutual or cooperative electric company's annual load
loss for each year of the recovery period is the amount (if any) by which—
I.R.C. § 501(c)(12)(H)(iv)(I) —
the megawatt hours of electric energy sold during such year to members of such electric
company are less than
I.R.C. § 501(c)(12)(H)(iv)(II) —
the megawatt hours of electric energy sold during the base year to such members.
I.R.C. § 501(c)(12)(H)(v) —
For purposes of clause (iv)(II), the term “base year” means—
I.R.C. § 501(c)(12)(H)(v)(I) —
the calendar year preceding the start-up year, or
I.R.C. § 501(c)(12)(H)(v)(II) —
at the election of the mutual or cooperative electric company, the second or third
calendar years preceding the start-up year.
I.R.C. § 501(c)(12)(H)(vi) —
For purposes of this subparagraph, the recovery period is the 7-year period beginning
with the start-up year.
I.R.C. § 501(c)(12)(H)(vii) —
For purposes of this subparagraph, the start-up year is the first year that the
mutual or cooperative electric company offers nondiscriminatory open access or the
calendar year which includes the date of the enactment of this subparagraph, if later,
at the election of such company.
I.R.C. § 501(c)(12)(H)(viii) —
A company shall not fail to be treated as a mutual or cooperative electric
company for purposes of this paragraph or as a corporation operating on a cooperative
basis for purposes of section 1381(a)(2)(C) by reason of the treatment under clause (i).
I.R.C. § 501(c)(12)(H)(ix) —
For purposes of subparagraph (A), in the case of a mutual or cooperative electric
company, income received, or accrued, indirectly from a member shall be treated as
an amount collected from members for the sole purpose of meeting losses and
expenses.
I.R.C. § 501(c)(12)(I) —
In the case of a mutual or cooperative electric company described in this paragraph
or an organization described in section 1381(a)(2), income received or accrued in connection with an election under section 45J(e)(1) shall be treated as an amount collected from members for the sole purpose of meeting
losses and expenses.
I.R.C. § 501(c)(13) —
Cemetery companies owned and operated exclusively for the benefit of their members
or which are not operated for profit; and any corporation chartered solely for the
purpose of the disposal of bodies by burial or cremation which is not permitted by
its charter to engage in any business not necessarily incident to that purpose and
no part of the net earnings of which inures to the benefit of any private shareholder
or individual.
I.R.C. § 501(c)(14)
I.R.C. § 501(c)(14)(A) —
Credit unions without capital stock organized and operated for mutual purposes and
without profit.
I.R.C. § 501(c)(14)(B) —
Corporations or associations without capital stock organized before September 1,
1957, and operated for mutual purposes and without profit for the purpose of providing
reserve funds for, and insurance of shares or deposits in—
I.R.C. § 501(c)(14)(B)(i) —
domestic building and loan associations,
I.R.C. § 501(c)(14)(B)(ii) —
cooperative banks without capital stock organized and operated for mutual purposes
and without profit,
I.R.C. § 501(c)(14)(B)(iii) —
mutual savings banks not having capital stock represented by shares, or
I.R.C. § 501(c)(14)(B)(iv) —
mutual savings banks described in section 591(b).
I.R.C. § 501(c)(14)(C) —
Corporations or associations organized before September 1, 1957, and operated for
mutual purposes and without profit for the purpose of providing reserve funds for
associations or banks described in clause (i), (ii), or (iii) of subparagraph
(B); but only if 85 percent or more of the income is attributable to providing such
reserve funds and to investments. This subparagraph shall not apply to any corporation
or association entitled to exemption under subparagraph (B).
I.R.C. § 501(c)(15)
I.R.C. § 501(c)(15)(A) —
Insurance companies (as defined in section 816(a))
other than life (including interinsurers and reciprocal underwriters)
if—
I.R.C. § 501(c)(15)(A)(i)
I.R.C. § 501(c)(15)(A)(i)(I) —
the gross receipts for the taxable year do not exceed $600,000, and
I.R.C. § 501(c)(15)(A)(i)(II) —
more than 50 percent of such gross receipts consist of premiums, or
I.R.C. § 501(c)(15)(A)(ii) —
in the case of a mutual insurance company—
I.R.C. § 501(c)(15)(A)(ii)(I) —
the gross receipts of which for the taxable year do not exceed $150,000, and
I.R.C. § 501(c)(15)(A)(ii)(II) —
more than 35 percent of such gross receipts consist of premiums.
Clause (ii) shall not apply to a
company if any employee of the company, or a member of the employee's
family (as defined in section 2032A(e)(2)), is an employee of another company exempt from taxation by reason of this paragraph
(or would be so exempt but for this sentence).
I.R.C. § 501(c)(15)(B) —
For purposes of subparagraph (A), in determining whether any company or association
is described in subparagraph
(A), such company or association shall be treated as receiving during the taxable
year amounts described in subparagraph (A) which are received during such year by
all other companies or associations which are members of the same controlled group
as the insurance company or association for which the determination is being made.
I.R.C. § 501(c)(15)(C) —
For purposes of subparagraph (B), the term “controlled group” has the
meaning given such term by section 831(b)(2)(B)(ii), except that in applying section 831(b)(2)(B)(ii) for purposes of this subparagraph, subparagraphs (B) and (C) of section 1563(b)(2) shall be disregarded.
I.R.C. § 501(c)(16) —
Corporations organized by an association subject to part IV of this subchapter or
members thereof, for the purpose of financing the ordinary crop operations of such
members or other producers, and operated in conjunction with such association. Exemption
shall not be denied any such corporation because it has capital stock, if the dividend
rate of such stock is fixed at not to exceed the legal rate of interest in the State
of incorporation or 8 percent per annum, whichever is greater, on the value of the
consideration for which the stock was issued, and if substantially all such stock
(other than nonvoting preferred stock, the owners of which are not entitled or permitted
to participate, directly or indirectly, in the profits of the corporation, on dissolution
or otherwise, beyond the fixed dividends) is owned by such association, or members
thereof; nor shall exemption be denied any such corporation because there is accumulated
and maintained by it a reserve required by State law or a reasonable reserve for
any necessary purpose.
I.R.C. § 501(c)(17)
I.R.C. § 501(c)(17)(A) —
A trust or trusts forming part of a plan providing for the payment of supplemental
unemployment compensation benefits, if—
I.R.C. § 501(c)(17)(A)(i) —
under the plan, it is impossible, at any time prior to the satisfaction of all liabilities,
with respect to employees under the plan, for any part of the corpus or income to
be (within the taxable year or thereafter) used for, or diverted to, any purpose
other than the providing of supplemental unemployment compensation benefits,
I.R.C. § 501(c)(17)(A)(ii) —
such benefits are payable to employees under a classification which is set forth
in the plan and which is found by the Secretary not to be discriminatory in favor
of employees who are highly compensated employees (within the meaning of section
414(q)), and
I.R.C. § 501(c)(17)(A)(iii) —
such benefits do not discriminate in favor of employees who are highly compensated
employees (within the meaning of section 414(q)). A plan shall not be considered discriminatory within the meaning of this clause
merely because the benefits received under the plan bear a uniform relationship
to the total compensation, or the basic or regular rate of compensation, of the employees
covered by the plan.
I.R.C. § 501(c)(17)(B) —
In determining whether a plan meets the requirements of subparagraph (A), any benefits
provided under any other plan shall not be taken into consideration, except that
a plan shall not be considered discriminatory—
I.R.C. § 501(c)(17)(B)(i) —
merely because the benefits under the plan which are first determined in a nondiscriminatory
manner within the meaning of subparagraph (A) are then reduced by any sick, accident,
or unemployment compensation benefits received under State or Federal law (or reduced
by a portion of such benefits if determined in a nondiscriminatory manner), or
I.R.C. § 501(c)(17)(B)(ii) —
merely because the plan provides only for employees who are not eligible to receive
sick, accident, or unemployment compensation benefits under State or Federal law
the same benefits (or a portion of such benefits if determined in a nondiscriminatory
manner) which such employees would receive under such laws if such employees were
eligible for such benefits, or
I.R.C. § 501(c)(17)(B)(iii) —
merely because the plan provides only for employees who are not eligible under another
plan (which meets the requirements of subparagraph (A)) of supplemental unemployment
compensation benefits provided wholly by the employer the same benefits
(or a portion of such benefits if determined in a nondiscriminatory manner) which
such employees would receive under such other plan if such employees were eligible
under such other plan, but only if the employees eligible under both plans would
make a classification
which would be nondiscriminatory within the meaning of subparagraph
(A).
I.R.C. § 501(c)(17)(C) —
A plan shall be considered to meet the requirements of subparagraph (A) during the
whole of any year of the plan if on one day in each quarter it satisfies such requirements.
I.R.C. § 501(c)(17)(D) —
The term “supplemental unemployment compensation benefits” means only—
I.R.C. § 501(c)(17)(D)(i) —
benefits which are paid to an employee because of his involuntary separation from
the employment of the employer (whether or not such separation is temporary) resulting
directly from a reduction in force, the discontinuance of a plant or operation, or
other similar conditions, and
I.R.C. § 501(c)(17)(D)(ii) —
sick and accident benefits subordinate to the benefits described in clause (i).
I.R.C. § 501(c)(17)(E) —
Exemption shall not be denied under subsection (a) to any organization entitled to
such exemption as an association described in paragraph (9) of this subsection merely
because such organization provides for the payment of supplemental unemployment benefits
(as defined in subparagraph (D)(i)).
I.R.C. § 501(c)(18) —
A trust or trusts created before June 25, 1959, forming part of a plan providing
for the payment of benefits under a pension plan funded only by contributions of
employees, if—
I.R.C. § 501(c)(18)(A) —
under the plan, it is impossible, at any time prior to the satisfaction of all liabilities
with respect to employees under the plan, for any part of the corpus or income to
be (within the taxable year or thereafter) used for, or diverted to, any purpose
other than the providing of benefits under the plan,
I.R.C. § 501(c)(18)(B) —
such benefits are payable to employees under a classification which is set forth
in the plan and which is found by the Secretary not to be discriminatory in favor
of employees who are highly compensated employees (within the meaning of section
414(q)),
I.R.C. § 501(c)(18)(C) —
such benefits do not discriminate in favor of employees who are highly compensated
employees (within the meaning of section 414(q)). A plan shall not be considered discriminatory within the meaning of this subparagraph
merely because the benefits received under the plan bear a uniform relationship to
the total compensation, or the basic or regular rate of compensation, of the employees
covered by the plan, and
I.R.C. § 501(c)(18)(D) —
in the case of a plan under which an employee may designate certain contributions
as deductible—
I.R.C. § 501(c)(18)(D)(i) —
such contributions do not exceed the amount with respect to which a deduction is
allowable under section 219(b)(3),
I.R.C. § 501(c)(18)(D)(ii) —
requirements similar to the requirements of section 401(k)(3)(A)(ii) are met with respect to such elective contributions,
I.R.C. § 501(c)(18)(D)(iii) —
such contributions are treated as elective deferrals for purposes of section 402(g), and
I.R.C. § 501(c)(18)(D)(iv) —
the requirements of section 401(a)(30) are met.
I.R.C. § 501(c)(19) —
A post or organization of past or present members of the Armed Forces of the United
States, or an auxiliary unit or society of, or a trust or foundation for, any such
post or organization—
I.R.C. § 501(c)(19)(A) —
organized in the United States or any of its possessions,
I.R.C. § 501(c)(19)(B) —
at least 75 percent of the members of which are past or present members of the Armed
Forces of the United States and substantially all of the other members of which are
individuals who are cadets or are spouses, widows, widowers, ancestors, or lineal
descendants of past or present members of the Armed Forces of the United States
or of cadets, and
I.R.C. § 501(c)(19)(C) —
no part of the net earnings of which inures to the benefit of any private shareholder
or individual.
I.R.C. § 501(c)(21)
I.R.C. § 501(c)(21)(A) —
A trust or trusts established in writing, created or organized in the United States,
and contributed to by any person (except an insurance company) if—
I.R.C. § 501(c)(21)(A)(i) —
the purpose of such trust or trusts is exclusively—
I.R.C. § 501(c)(21)(A)(i)(I) —
to satisfy, in whole or in part, the liability of such person for, or with respect
to, claims for compensation for disability or death due to pneumoconiosis under Black
Lung Acts,
I.R.C. § 501(c)(21)(A)(i)(II) —
to pay premiums for insurance exclusively covering such liability,
I.R.C. § 501(c)(21)(A)(i)(III) —
to pay administrative and other incidental expenses of such trust in connection
with the operation of the trust and the processing of claims against such person
under Black Lung Acts, and
I.R.C. § 501(c)(21)(A)(i)(IV) —
to pay accident or health benefits for retired miners and their spouses and dependents
(including administrative and other incidental expenses of such trust in connection
therewith)
or premiums for insurance exclusively covering such benefits; and
I.R.C. § 501(c)(21)(A)(ii) —
no part of the assets of the trust may be used for, or diverted to, any purpose
other than—
I.R.C. § 501(c)(21)(A)(ii)(I) —
the purposes described in clause (i),
I.R.C. § 501(c)(21)(A)(ii)(II) —
investment (but only to the extent that the trustee determines that a portion of
the assets is not currently needed for the purposes described in clause (i)) in
qualified investments, or
I.R.C. § 501(c)(21)(A)(ii)(III) —
payment into the Black Lung Disability Trust Fund established under section 9501,
or into the general fund of the United States Treasury (other than in satisfaction
of any tax or other civil or criminal liability of the person who established or
contributed to the trust).
I.R.C. § 501(c)(21)(B) —
No deduction shall be allowed under this chapter for any payment described in subparagraph
(A)(i)(IV)
from such trust.
I.R.C. § 501(c)(21)(C) —
Payments described in subparagraph
(A)(i)(IV) may be made from such trust during a taxable year only to the extent
that the aggregate amount of such payments during such taxable year does not exceed
the excess (if any), as of the close of the preceding taxable year, of—
I.R.C. § 501(c)(21)(C)(i) —
the fair market value of the assets of the trust, over
I.R.C. § 501(c)(21)(C)(ii) —
110 percent of the present value of the liability described in subparagraph (A)(i)(I)
of such person.
The determinations under the preceding sentence shall be made by an independent actuary
using actuarial methods and assumptions
(not inconsistent with the regulations prescribed under section 192(c)(1)(A)) each of which is reasonable and which are reasonable in the aggregate.
I.R.C. § 501(c)(21)(D) —
For purposes of this paragraph:
I.R.C. § 501(c)(21)(D)(i) —
The term “Black Lung Acts”
means part C of title IV of the Federal Mine Safety and Health Act of 1977, and any
State law providing compensation for disability or death due to that pneumoconiosis.
I.R.C. § 501(c)(21)(D)(ii) —
The term “qualified investments”
means—
I.R.C. § 501(c)(21)(D)(ii)(I) —
public debt securities of the United States,
I.R.C. § 501(c)(21)(D)(ii)(II) —
obligations of a State or local government which are not in default as to principal
or interest, and
I.R.C. § 501(c)(21)(D)(ii)(III) —
time or demand deposits in a bank
(as defined in section 581)
or an insured credit union (within the meaning of section 101(7)
of the Federal Credit Union Act, 12 U.S.C. 1752(7)) located in the United States.
I.R.C. § 501(c)(21)(D)(iii) —
The term “miner” has the same meaning as such term has when used in section
402(d) of the Black Lung Benefits Act (30 U.S.C. 902(d)).
I.R.C. § 501(c)(21)(D)(iv) —
The term “incidental expenses”
includes legal, accounting, actuarial, and trustee expenses.
I.R.C. § 501(c)(22) —
A trust created or organized in the United States and established in writing by
the plan sponsors of multiemployer plans if—
I.R.C. § 501(c)(22)(A) —
the purpose of such trust is exclusively—
I.R.C. § 501(c)(22)(A)(i) —
to pay any amount described in section 4223(c) or (h) of the Employee Retirement
Income Security Act of 1974, and
I.R.C. § 501(c)(22)(A)(ii) —
to pay reasonable and necessary administrative expenses in connection with the establishment
and operation of the trust and the processing of claims against the trust,
I.R.C. § 501(c)(22)(B) —
no part of the assets of the trust may be used for, or diverted to, any purpose
other than—
I.R.C. § 501(c)(22)(B)(i) —
the purposes described in subparagraph
(A), or
I.R.C. § 501(c)(22)(B)(ii) —
the investment in securities, obligations, or time or demand deposits described
in clause (ii) of paragraph
(21)(D),
I.R.C. § 501(c)(22)(C) —
such trust meets the requirements of paragraphs (2), (3), and (4) of section 4223(b),
4223(h), or, if applicable, section 4223(c) of the Employee Retirement Income Security
Act of 1974, and
I.R.C. § 501(c)(22)(D) —
the trust instrument provides that, on dissolution of the trust, assets of the trust
may not be paid other than to plans which have participated in the plan or, in the
case of a trust established under section 4223(h) of such Act, to plans with respect
to which employers have participated in the fund.
I.R.C. § 501(c)(23) —
Any association organized before 1880 more than 75 percent of the members of which
are present or past members of the Armed Forces and a principal purpose of which
is to provide insurance and other benefits to veterans or their dependents.
I.R.C. § 501(c)(24) —
A trust described in section 4049 of the Employee Retirement Income Security Act
of 1974 (as in effect on the date of the enactment of the Single-Employer Pension
Plan Amendments Act of 1986).
I.R.C. § 501(c)(25)
I.R.C. § 501(c)(25)(A) —
Any corporation or trust which—
I.R.C. § 501(c)(25)(A)(i) —
has no more than 35 shareholders or beneficiaries,
I.R.C. § 501(c)(25)(A)(ii) —
has only 1 class of stock or beneficial interest, and
I.R.C. § 501(c)(25)(A)(iii) —
is organized for the exclusive purposes of—
I.R.C. § 501(c)(25)(A)(iii)(I) —
acquiring real property and holding title to, and collecting income from, such property,
and
I.R.C. § 501(c)(25)(A)(iii)(II) —
remitting the entire amount of income from such property (less expenses) to 1 or
more organizations described in subparagraph (C) which are shareholders of such corporation
or beneficiaries of such trust.
For purposes of clause (iii), the term “real property”
shall not include any interest as a tenant in common (or similar interest) and shall
not include any indirect interest.
I.R.C. § 501(c)(25)(B) —
A corporation or trust shall be described in subparagraph (A) without regard to
whether the corporation or trust is organized by 1 or more organizations described
in subparagraph
(C).
I.R.C. § 501(c)(25)(C) —
An organization is described in this subparagraph if such organization is—
I.R.C. § 501(c)(25)(C)(i) —
a qualified pension, profit sharing, or stock bonus plan that meets the requirements
of section 401(a),
I.R.C. § 501(c)(25)(C)(ii) —
a governmental plan (within the meaning of section 414(d)),
I.R.C. § 501(c)(25)(C)(iii) —
the United States, any State or political subdivision thereof, or any agency or
instrumentality of any of the foregoing, or
I.R.C. § 501(c)(25)(C)(iv) —
any organization described in paragraph
(3).
I.R.C. § 501(c)(25)(D) —
A corporation or trust shall in no event be treated as described in subparagraph
(A) unless such corporation or trust permits its shareholders or beneficiaries—
I.R.C. § 501(c)(25)(D)(i) —
to dismiss the corporation's or trust's investment adviser, following reasonable
notice, upon a vote of the shareholders or beneficiaries holding a majority of interest
in the corporation or trust, and
I.R.C. § 501(c)(25)(D)(ii) —
to terminate their interest in the corporation or trust by either, or both, of the
following alternatives, as determined by the corporation or trust:
I.R.C. § 501(c)(25)(D)(ii)(I) —
by selling or exchanging their stock in the corporation or interest in the trust
(subject to any Federal or State securities law) to any organization described in
subparagraph
(C) so long as the sale or exchange does not increase the number of shareholders
or beneficiaries in such corporation or trust above 35, or
I.R.C. § 501(c)(25)(D)(ii)(II) —
by having their stock or interest redeemed by the corporation or trust after the
shareholder or beneficiary has provided 90 days notice to such corporation or trust.
I.R.C. § 501(c)(25)(E)
I.R.C. § 501(c)(25)(E)(i) —
For purposes of this title—
I.R.C. § 501(c)(25)(E)(i)(I) —
a corporation which is a qualified subsidiary shall not be treated as a separate
corporation, and
I.R.C. § 501(c)(25)(E)(i)(II) —
all assets, liabilities, and items of income, deduction, and credit of a qualified
subsidiary shall be treated as assets, liabilities, and such items (as the case may
be) of the corporation or trust described in subparagraph (A).
I.R.C. § 501(c)(25)(E)(ii) —
For purposes of this subparagraph, the term “qualified subsidiary” means
any corporation if, at all times during the period such corporation was in existence,
100 percent of the stock of such corporation is held by the corporation or trust
described in subparagraph (A).
I.R.C. § 501(c)(25)(E)(iii) —
For purposes of this subtitle, if any corporation which was a qualified subsidiary
ceases to meet the requirements of clause (ii), such corporation shall be treated
as a new corporation acquiring all of its assets (and assuming all of its liabilities)
immediately before such cessation from the corporation or trust described in subparagraph
(A) in exchange for its stock.
I.R.C. § 501(c)(25)(F) —
For purposes of subparagraph (A), the term “real property” includes any
personal property which is leased under, or in connection with, a lease of real property,
but only if the rent attributable to such personal property (determined under the
rules of section 856(d)(1))
for the taxable year does not exceed 15 percent of the total rent for the taxable
year attributable to both the real and personal property leased under, or in connection
with, such lease.
I.R.C. § 501(c)(25)(G)
I.R.C. § 501(c)(25)(G)(i) —
An organization shall not be treated as failing to be described in this paragraph
merely by reason of the receipt of any otherwise disqualifying income which is incidentally
derived from the holding of real property.
I.R.C. § 501(c)(25)(G)(ii) —
Clause (i) shall not apply if the amount of gross income described in such clause
exceeds 10 percent of the organization's gross income for the taxable year unless
the organization establishes to the satisfaction of the Secretary that the receipt
of gross income described in clause (i) in excess of such
limitation was inadvertent and reasonable steps are being taken to correct the circumstances
giving rise to such income.
I.R.C. § 501(c)(26) —
Any membership organization if—
I.R.C. § 501(c)(26)(A) —
such organization is established by a State exclusively to provide coverage for
medical care (as defined in section 213(d))
on a not-for-profit basis to individuals described in subparagraph
(B) through--
I.R.C. § 501(c)(26)(A)(i) —
insurance issued by the organization, or
I.R.C. § 501(c)(26)(A)(ii) —
a health maintenance organization under an arrangement with the organization,
I.R.C. § 501(c)(26)(B) —
the only individuals receiving such coverage through the organization are individuals—
I.R.C. § 501(c)(26)(B)(i) —
who are residents of such State, and
I.R.C. § 501(c)(26)(B)(ii) —
who, by reason of the existence or history of a medical condition--
I.R.C. § 501(c)(26)(B)(ii)(I) —
are unable to acquire medical care coverage for such condition through insurance
or from a health maintenance organization, or
I.R.C. § 501(c)(26)(B)(ii)(II) —
are able to acquire such coverage only at a rate which is substantially in excess
of the rate for such coverage through the membership organization,
I.R.C. § 501(c)(26)(C) —
the composition of the membership in such organization is specified by such State,
and
I.R.C. § 501(c)(26)(D) —
no part of the net earnings of the organization inures to the benefit of any private
shareholder or individual.
A spouse and any qualifying child (as defined in section
24(c)) of an individual described in subparagraph (B) (without regard to this sentence)
shall be treated as described in subparagraph (B).
I.R.C. § 501(c)(27)
I.R.C. § 501(c)(27)(A) —
Any membership organization if—
I.R.C. § 501(c)(27)(A)(i) —
such organization is established before June 1, 1996, by a State exclusively to
reimburse its members for losses arising under workmen's compensation acts,
I.R.C. § 501(c)(27)(A)(ii) —
such State requires that the membership of such organization consist of—
I.R.C. § 501(c)(27)(A)(ii)(I) —
all persons who issue insurance covering workmen's compensation losses in such State,
and
I.R.C. § 501(c)(27)(A)(ii)(II) —
all persons and governmental entities who self-insure against such losses, and
I.R.C. § 501(c)(27)(A)(iii) —
such organization operates as a non-profit organization by—
I.R.C. § 501(c)(27)(A)(iii)(I) —
returning surplus income to its members or workmen's compensation policyholders on
a periodic basis, and
I.R.C. § 501(c)(27)(A)(iii)(II) —
reducing initial premiums in anticipation of investment income.
I.R.C. § 501(c)(27)(B) —
Any organization (including a mutual insurance company) if—
I.R.C. § 501(c)(27)(B)(i) —
such organization is created by State law and is organized and operated under State
law exclusively to—
I.R.C. § 501(c)(27)(B)(i)(I) —
provide workmen's compensation insurance which is required by State law or with respect
to which State law provides significant disincentives if such insurance is not purchased
by an employer, and
I.R.C. § 501(c)(27)(B)(i)(II) —
provide related coverage which is incidental to workmen's compensation insurance,
I.R.C. § 501(c)(27)(B)(ii) —
such organization must provide workmen's compensation insurance to any employer in
the State (for employees in the State or temporarily assigned out-of-State) which
seeks such insurance and meets other reasonable requirements relating thereto,
I.R.C. § 501(c)(27)(B)(iii)
I.R.C. § 501(c)(27)(B)(iii)(I) —
the State makes a financial commitment with respect to such organization either
by extending the full faith and credit of the State to the initial debt of such organization
or by providing the initial operating capital of such organization, and
I.R.C. § 501(c)(27)(B)(iii)(II) —
in the case of periods after the date of enactment of this subparagraph, the assets
of such organization revert to the State upon dissolution or State law does not permit
the dissolution of such organization, and
I.R.C. § 501(c)(27)(B)(iv) —
the majority of the board of directors or oversight body of such organization are
appointed by the chief executive officer or other executive branch official of the
State, by the State legislature, or by both.
I.R.C. § 501(c)(28) —
The National Railroad Retirement Investment Trust established under section 15(j)
of the Railroad Retirement Act of 1974.
I.R.C. § 501(c)(29) Co-Op Health Insurance Issuers
I.R.C. § 501(c)(29)(A) In General —
A qualified nonprofit health insurance issuer (within the meaning of section 1322
of the Patient Protection and Affordable Care Act) which has received a loan or grant
under the CO-OP program under such section, but only with respect to periods for which
the issuer is in compliance with the requirements of such section and any agreement
with respect to the loan or grant.
I.R.C. § 501(c)(29)(B) Conditions For Exemption —
Subparagraph (A) shall apply to an organization only if—
I.R.C. § 501(c)(29)(B)(i) —
the organization has given notice to the Secretary, in such manner as the Secretary
may by regulations prescribe, that it is applying for recognition of its status under
this paragraph,
I.R.C. § 501(c)(29)(B)(ii) —
except as provided in section 1322(c)(4)
of the Patient Protection and Affordable Care Act, no part of the net earnings of
which inures to the benefit of any private shareholder or individual,
I.R.C. § 501(c)(29)(B)(iii) —
no substantial part of the activities of which is carrying on propaganda, or otherwise
attempting, to influence legislation, and
I.R.C. § 501(c)(29)(B)(iv) —
the organization does not participate in, or intervene in (including the publishing
or distributing of statements), any political campaign on behalf of (or in opposition
to) any candidate for public office.
I.R.C. § 501(d) Religious And Apostolic Organizations —
The following organizations are referred to in subsection
(a): Religious or apostolic associations or corporations, if such associations or
corporations have a common treasury or community treasury, even if such associations
or corporations engage in business for the common benefit of the members, but only
if the members thereof include (at the time of filing their returns) in their gross
income their entire pro rata shares, whether distributed or not, of the taxable income
of the association or corporation for such year. Any amount so included in the gross
income of a member shall be treated as a dividend received.
I.R.C. § 501(e) Cooperative Hospital Service Organizations —
For purposes of this title, an organization shall be treated as an organization
organized and operated exclusively for charitable purposes, if—
I.R.C. § 501(e)(1) —
such organization is organized and operated solely—
I.R.C. § 501(e)(1)(A) —
to perform, on a centralized basis, one or more of the following services which,
if performed on its own behalf by a hospital which is an organization described in
subsection
(c)(3) and exempt from taxation under subsection (a), would constitute activities
in exercising or performing the purpose or function constituting the basis for its
exemption: data processing, purchasing (including the purchasing of insurance on
a group basis), warehousing, billing and collection (including the purchase of patron
accounts receivable on a recourse basis), food, clinical, industrial engineering,
laboratory, printing, communications, record center, and personnel (including selection,
testing, training, and education of personnel) services;
and
I.R.C. § 501(e)(1)(B) —
to perform such services solely for two or more hospitals each of which is—
I.R.C. § 501(e)(1)(B)(i) —
an organization described in subsection
(c)(3) which is exempt from taxation under subsection (a),
I.R.C. § 501(e)(1)(B)(ii) —
a constituent part of an organization described in subsection (c)(3) which is exempt
from taxation under subsection (a) and which, if organized and operated as a separate
entity, would constitute an organization described in subsection
(c)(3), or
I.R.C. § 501(e)(1)(B)(iii) —
owned and operated by the United States, a State, the District of Columbia, or a
possession of the United States, or a political subdivision or an agency or instrumentality
of any of the foregoing;
I.R.C. § 501(e)(2) —
such organization is organized and operated on a cooperative basis and allocates
or pays, within 81/2 months after the close of its taxable year, all net earnings
to patrons on the basis of services performed for them; and
I.R.C. § 501(e)(3) —
if such organization has capital stock, all of such stock outstanding is owned by
its patrons.
For purposes of this title, any organization which, by reason of the preceding sentence,
is an organization described in subsection (c)(3) and exempt from taxation under
subsection (a), shall be treated as a hospital and as an organization referred to
in section 170(b)(1)(A)(iii).
I.R.C. § 501(f) Cooperative Service Organizations Of Operating Educational Organizations —
For purposes of this title, if an organization is—
I.R.C. § 501(f)(1) —
organized and operated solely to hold, commingle, and collectively invest and reinvest
(including arranging for and supervising the performance by independent contractors
of investment services related thereto) in stocks and securities, the moneys contributed
thereto by each of the members of such organization, and to collect income therefrom
and turn over the entire amount thereof, less expenses, to such members,
I.R.C. § 501(f)(2) —
organized and controlled by one or more such members, and
I.R.C. § 501(f)(3) —
comprised solely of members that are organizations described in clause (ii) or (iv)
of section 170(b)(1)(A)—
I.R.C. § 501(f)(3)(A) —
which are exempt from taxation under subsection (a), or
I.R.C. § 501(f)(3)(B) —
the income of which is excluded from taxation under section 115, then such organization shall be treated as an organization organized and operated
exclusively for charitable purposes.
I.R.C. § 501(g) Definition Of Agricultural —
For purposes of subsection (c)(5), the term “agricultural"
includes the art or science of cultivating land, harvesting crops or aquatic resources,
or raising livestock.
I.R.C. § 501(h) Expenditures By Public Charities To Influence Legislation
I.R.C. § 501(h)(1) General Rule —
In the case of an organization to which this subsection applies, exemption from
taxation under subsection (a) shall be denied because a substantial part of the activities
of such organization consists of carrying on propaganda, or otherwise attempting,
to influence legislation, but only if such organization normally—
I.R.C. § 501(h)(1)(A) —
makes lobbying expenditures in excess of the lobbying ceiling amount for such organization
for each taxable year, or
I.R.C. § 501(h)(1)(B) —
makes grass roots expenditures in excess of the grass roots ceiling amount for such
organization for each taxable year.
I.R.C. § 501(h)(2) Definitions —
For purposes of this subsection—
I.R.C. § 501(h)(2)(A) Lobbying Expenditures —
The term “lobbying expenditures” means expenditures for the purpose of
influencing legislation (as defined in section 4911(d)).
I.R.C. § 501(h)(2)(B) Lobbying Ceiling Amount —
The lobbying ceiling amount for any organization for any taxable year is 150 percent
of the lobbying nontaxable amount for such organization for such taxable year, determined
under section 4911.
I.R.C. § 501(h)(2)(C) Grass Roots Expenditures —
The term “grass roots expenditures” means expenditures for the purpose
of influencing legislation (as defined in section 4911(d) without regard to
paragraph (1)(B) thereof).
I.R.C. § 501(h)(2)(D) Grass Roots Ceiling Amount —
The grass roots ceiling amount for any organization for any taxable year is 150
percent of the grass roots nontaxable amount for such organization for such taxable
year, determined under section 4911.
I.R.C. § 501(h)(3) Organizations To Which This Subsection Applies —
This subsection shall apply to any organization which has elected (in such manner
and at such time as the Secretary may prescribe) to have the provisions of this subsection
apply to such organization and which, for the taxable year which includes the date
the election is made, is described in subsection (c)(3) and—
I.R.C. § 501(h)(3)(A) —
is described in paragraph (4), and
I.R.C. § 501(h)(3)(B) —
is not a disqualified organization under paragraph (5).
I.R.C. § 501(h)(4) Organizations Permitted To Elect To Have This Subsection Apply —
An organization is described in this paragraph if it is described in—
I.R.C. § 501(h)(4)(A) —
section 170(b)(1)(A)(ii) (relating to educational institutions),
I.R.C. § 501(h)(4)(B) —
section 170(b)(1)(A)(iii) (relating to hospitals and medical research organizations),
I.R.C. § 501(h)(4)(C) —
section 170(b)(1)(A)(iv) (relating to organizations supporting government schools),
I.R.C. § 501(h)(4)(D) —
section 170(b)(1)(A)(vi) (relating to organizations publicly supported by charitable contributions),
I.R.C. § 501(h)(4)(E) —
section 170(b)(1)(A)(ix) (relating to agricultural research organizations),
I.R.C. § 501(h)(4)(F) —
section 509(a)(2) (relating to organizations publicly supported by admissions, sales, etc.), or
I.R.C. § 501(h)(5) Disqualified Organizations —
For purposes of paragraph (3) an organization is a disqualified organization if
it is—
I.R.C. § 501(h)(5)(A) —
described in section 170(b)(1)(A)(i) (relating to churches),
I.R.C. § 501(h)(5)(B) —
an integrated auxiliary of a church or of a convention or association of churches,
or
I.R.C. § 501(h)(5)(C) —
a member of an affiliated group of organizations (within the meaning of section
4911(f)(2)) if one or more members of such group is described in subparagraph (A) or (B).
I.R.C. § 501(h)(6) Years For Which Election Is Effective —
An election by an organization under this subsection shall be effective for all
taxable years of such organization which—
I.R.C. § 501(h)(6)(A) —
end after the date the election is made, and
I.R.C. § 501(h)(6)(B) —
begin before the date the election is revoked by such organization (under regulations
prescribed by the Secretary).
I.R.C. § 501(h)(7) No Effect On Certain Organizations —
With respect to any organization for a taxable year for which—
I.R.C. § 501(h)(7)(A) —
such organization is a disqualified organization (within the meaning of paragraph
(5)), or
I.R.C. § 501(h)(7)(B) —
an election under this subsection is not in effect for such organization, nothing
in this subsection or in section 4911 shall be construed to affect the interpretation of the phrase, “no substantial
part of the activities of which is carrying on propaganda, or otherwise attempting,
to influence legislation,” under subsection (c)(3).
I.R.C. § 501(h)(8) Affiliated Organizations —
For rules regarding affiliated organizations, see section 4911(f).
I.R.C. § 501(i) Prohibition Of Discrimination By Certain Social Clubs —
Notwithstanding subsection (a), an organization which is described in subsection
(c)(7) shall not be exempt from taxation under subsection (a) for any taxable year
if, at any time during such taxable year, the charter, bylaws, or other governing
instrument, of such organization or any written policy statement of such organization
contains a provision which provides for discrimination against any person on the
basis of race, color, or religion. The preceding sentence to the extent it relates
to discrimination on the basis of religion shall not apply to—
I.R.C. § 501(i)(1) —
an auxiliary of a fraternal beneficiary society if such society—
I.R.C. § 501(i)(1)(A) —
is described in subsection (c)(8) and exempt from tax under subsection (a), and
I.R.C. § 501(i)(1)(B) —
limits its membership to the members of a particular religion, or
I.R.C. § 501(i)(2) —
a club which in good faith limits its membership to the members of a particular
religion in order to further the teachings or principles of that religion, and not
to exclude individuals of a particular race or color.
I.R.C. § 501(j) Special Rules For Certain Amateur Sports Organizations
I.R.C. § 501(j)(1) In General —
In the case of a qualified amateur sports organization—
I.R.C. § 501(j)(1)(A) —
the requirement of subsection (c)(3)
that no part of its activities involve the provision of athletic facilities or equipment
shall not apply, and
I.R.C. § 501(j)(1)(B) —
such organization shall not fail to meet the requirements of subsection (c)(3) merely
because its membership is local or regional in nature.
I.R.C. § 501(j)(2) Qualified Amateur Sports Organization Defined —
For purposes of this subsection, the term “qualified amateur sports organization”
means any organization organized and operated exclusively to foster national or international
amateur sports competition if such organization is also organized and operated primarily
to conduct national or international competition in sports or to support and develop
amateur athletes for national or international competition in sports.
I.R.C. § 501(k) Treatment Of Certain Organizations Providing Child Care —
For purposes of subsection (c)(3) of this section and sections 170(c)(2),
2055(a)(2), and 2522(a)(2), the term “educational purposes” includes the providing of care of children
away from their homes if—
I.R.C. § 501(k)(1) —
substantially all of the care provided by the organization is for purposes of enabling
individuals to be gainfully employed, and
I.R.C. § 501(k)(2) —
the services provided by the organization are available to the general public.
I.R.C. § 501(l) Government Corporations Exempt Under Subsection (c)(1) —
For purposes of subsection (c)(1), the following organizations are described in this
subsection:
I.R.C. § 501(l)(1) —
The Central Liquidity Facility established under title III of the Federal Credit Union
Act (12 U.S.C. 1795 et seq.).
I.R.C. § 501(l)(2) —
The Resolution Trust Corporation established under section 21A of the Federal Home
Loan Bank Act.
I.R.C. § 501(l)(3) —
The Resolution Funding Corporation established under section 21B of the Federal Home
Loan Bank Act.
I.R.C. § 501(l)(4) —
The Patient-Centered Outcomes Research Institute established under section 1181(b)
of the Social Security Act.
I.R.C. § 501(m) Certain Organizations Providing Commercial-Type Insurance Not Exempt From Tax
I.R.C. § 501(m)(1) Denial Of Tax Exemption Where Providing Commercial-Type Insurance Is Substantial Part
Of Activities —
An organization described in paragraph (3) or (4) of subsection (c) shall be exempt
from tax under subsection (a) only if no substantial part of its activities consists
of providing commercial-type insurance.
I.R.C. § 501(m)(2) Other Organizations Taxed As Insurance Companies On Insurance Business —
In the case of an organization described in paragraph
(3) or (4) of subsection (c) which is exempt from tax under subsection
(a) after the application of paragraph (1) of this subsection—
I.R.C. § 501(m)(2)(A) —
the activity of providing commercial-type insurance shall be treated as an unrelated
trade or business (as defined in section 513), and
I.R.C. § 501(m)(2)(B) —
in lieu of the tax imposed by section 511 with respect to such activity, such organization shall be treated as an insurance
company for purposes of applying subchapter L with respect to such activity.
I.R.C. § 501(m)(3) Commercial-Type Insurance —
For purposes of this subsection, the term “commercial-type insurance”
shall not include—
I.R.C. § 501(m)(3)(A) —
insurance provided at substantially below cost to a class of charitable recipients,
I.R.C. § 501(m)(3)(B) —
incidental health insurance provided by a health maintenance organization of a kind
customarily provided by such organizations,
I.R.C. § 501(m)(3)(C) —
property or casualty insurance provided
(directly or through an organization described in section 414(e)(3)(B)(ii))
by a church or convention or association of churches for such church or convention
or association of churches,
I.R.C. § 501(m)(3)(D) —
providing retirement or welfare benefits
(or both) by a church or a convention or association of churches
(directly or through an organization described in section 414(e)(3)(A) or 414(e)(3)(B)(ii))
for the employees (including employees described in section 414(e)(3)(B)) of such church or convention or association of churches or the beneficiaries of
such employees, and
I.R.C. § 501(m)(3)(E) —
charitable gift annuities.
I.R.C. § 501(m)(4) Insurance Includes Annuities —
For purposes of this subsection, the issuance of annuity contracts shall be treated
as providing insurance.
I.R.C. § 501(m)(5) Charitable Gift Annuity —
For purposes of paragraph (3)(E), the term “charitable gift annuity”
means an annuity if—
I.R.C. § 501(m)(5)(B) —
the annuity is described in section 514(c)(5) (determined as if any amount paid in cash in connection with such issuance were
property).
I.R.C. § 501(n) Charitable Risk Pools
I.R.C. § 501(n)(1) In General —
For purposes of this title—
I.R.C. § 501(n)(1)(A) —
a qualified charitable risk pool shall be treated as an organization organized and
operated exclusively for charitable purposes, and
I.R.C. § 501(n)(1)(B) —
subsection (m) shall not apply to a qualified charitable risk pool.
I.R.C. § 501(n)(2) Qualified Charitable Risk Pool —
For purposes of this subsection, the term “qualified charitable risk pool”
means any organization—
I.R.C. § 501(n)(2)(A) —
which is organized and operated solely to pool insurable risks of its members (other
than risks related to medical malpractice) and to provide information to its members
with respect to loss control and risk management,
I.R.C. § 501(n)(2)(B) —
which is comprised solely of members that are organizations described in subsection
(c)(3) and exempt from tax under subsection (a), and
I.R.C. § 501(n)(2)(C) —
which meets the organizational requirements of paragraph (3).
I.R.C. § 501(n)(3) Organizational Requirements —
An organization (hereinafter in this subsection referred to as the “risk pool”)
meets the organizational requirements of this paragraph if—
I.R.C. § 501(n)(3)(A) —
such risk pool is organized as a nonprofit organization under State law provisions
authorizing risk pooling arrangements for charitable organizations,
I.R.C. § 501(n)(3)(B) —
such risk pool is exempt from any income tax imposed by the State (or will be so
exempt after such pool qualifies as an organization exempt from tax under this title),
I.R.C. § 501(n)(3)(C) —
such risk pool has obtained at least
$1,000,000 in startup capital from nonmember charitable organizations,
I.R.C. § 501(n)(3)(D) —
such risk pool is controlled by a board of directors elected by its members, and
I.R.C. § 501(n)(3)(E) —
the organizational documents of such risk pool require that—
I.R.C. § 501(n)(3)(E)(i) —
each member of such pool shall at all times be an organization described in subsection
(c)(3) and exempt from tax under subsection (a),
I.R.C. § 501(n)(3)(E)(ii) —
any member which receives a final determination that it no longer qualifies as an
organization described in subsection (c)(3) shall immediately notify the pool of
such determination and the effective date of such determination, and
I.R.C. § 501(n)(3)(E)(iii) —
each policy of insurance issued by the risk pool shall provide that such policy
will not cover the insured with respect to events occurring after the date such final
determination was issued to the insured.
An organization shall not cease to
qualify as a qualified charitable risk pool solely by reason of the
failure of any of its members to continue to be an organization described
in subsection (c)(3) if, within a reasonable period of time after such pool is notified
as required under subparagraph (E)(ii), such pool takes such action as may be reasonably
necessary to remove such member from such pool.
I.R.C. § 501(n)(4) Other Definitions —
For purposes of this subsection—
I.R.C. § 501(n)(4)(A) Startup Capital —
The term “startup capital” means any capital contributed to, and any
program-related investments (within the meaning of section 4944(c))
made in, the risk pool before such pool commences operations.
I.R.C. § 501(n)(4)(B) Nonmember Charitable Organization —
The term “nonmember charitable organization”
means any organization which is described in subsection (c)(3) and exempt from tax
under subsection (a) and which is not a member of the risk pool and does not benefit
(directly or indirectly) from the insurance coverage provided by the pool to its
members.
I.R.C. § 501(o) Treatment Of Hospitals Participating In Provider-Sponsored Organizations —
An organization shall not fail to be treated as organized and operated exclusively
for a charitable purpose for purposes of subsection (c)(3) solely because a hospital
which is owned and operated by such organization participates in a provider-sponsored
organization
(as defined in section 1855(d) of the Social Security Act), whether or not the provider-sponsored
organization is exempt from tax. For purposes of subsection (c)(3), any person with
a material financial interest in such a provider-sponsored organization shall be
treated as a private shareholder or individual with respect to the hospital.
I.R.C. § 501(p) Suspension Of Tax-Exempt Status Of Terrorist Organizations
I.R.C. § 501(p)(1) In General —
The exemption from tax under subsection (a) with respect to any organization described
in paragraph (2), and the eligibility of any organization described in paragraph
(2) to apply for recognition of exemption under subsection (a), shall be suspended
during the period described in paragraph (3).
I.R.C. § 501(p)(2) Terrorist Organizations —
An organization is described in this paragraph if such organization is designated
or otherwise individually identified—
I.R.C. § 501(p)(2)(A) —
under section 212(a)(3)(B)(vi)(II)
or 219 of the Immigration and Nationality Act as a terrorist organization or foreign
terrorist organization,
I.R.C. § 501(p)(2)(B) —
in or pursuant to an Executive order which is related to terrorism and issued under
the authority of the International Emergency Economic Powers Act or section 5 of
the United Nations Participation Act of 1945 for the purpose of imposing on such
organization an economic or other sanction, or
I.R.C. § 501(p)(2)(C) —
in or pursuant to an Executive order issued under the authority of any Federal law
if—
I.R.C. § 501(p)(2)(C)(i) —
the organization is designated or otherwise individually identified in or pursuant
to such Executive order as supporting or engaging in terrorist activity (as defined
in section 212(a)(3)(B) of the Immigration and Nationality Act) or supporting terrorism
(as defined in section 140(d)(2) of the Foreign Relations Authorization Act, Fiscal
Years 1988 and 1989); and
I.R.C. § 501(p)(2)(C)(ii) —
such Executive order refers to this
subsection.
I.R.C. § 501(p)(3) Period Of Suspension —
With respect to any organization described in paragraph
(2), the period of suspension—
I.R.C. § 501(p)(3)(A) —
begins on the later of—
I.R.C. § 501(p)(3)(A)(i) —
the date of the first publication of a designation or identification described in
paragraph (2) with respect to such organization, or
I.R.C. § 501(p)(3)(A)(ii) —
the date of the enactment of this subsection, and
I.R.C. § 501(p)(3)(B) —
ends on the first date that all designations and identifications described in paragraph
(2) with respect to such organization are rescinded pursuant to the law or Executive
order under which such designation or identification was made.
I.R.C. § 501(p)(4) Denial Of Deduction —
I.R.C. § 501(p)(5) Denial Of Administrative Or Judicial Challenge Of Suspension Or Denial Of Deduction —
Notwithstanding section 7428 or any other provision of law, no organization or other person may challenge a suspension
under paragraph (1), a designation or identification described in paragraph (2),
the period of suspension described in paragraph (3), or a denial of a deduction under
paragraph (4) in any administrative or judicial proceeding relating to the Federal
tax liability of such organization or other person.
I.R.C. § 501(p)(6) Erroneous Designation
I.R.C. § 501(p)(6)(A) In General —
If—
I.R.C. § 501(p)(6)(A)(i) —
the tax exemption of any organization described in paragraph (2) is suspended under
paragraph (1),
I.R.C. § 501(p)(6)(A)(ii) —
each designation and identification described in paragraph (2) which has been made
with respect to such organization is determined to be erroneous pursuant to the law
or Executive order under which such designation or identification was made, and
I.R.C. § 501(p)(6)(A)(iii) —
the erroneous designations and identifications result in an overpayment of income
tax for any taxable year by such organization,
credit or refund (with interest) with respect to such
overpayment shall be made.
I.R.C. § 501(p)(6)(B) Waiver Of Limitations —
If the credit or refund of any overpayment of tax described in subparagraph (A)(iii)
is prevented at any time by the operation of any law or rule of law (including res
judicata), such credit or refund may nevertheless be allowed or made if the claim
therefor is filed before the close of the 1-year period beginning on the date of
the last determination described in subparagraph (A)(ii).
I.R.C. § 501(p)(7) Notice Of Suspensions —
If the tax exemption of any organization is suspended under this subsection, the
Internal Revenue Service shall update the listings of tax-exempt organizations and
shall publish appropriate notice to taxpayers of such suspension and of the fact
that contributions to such organization are not deductible during the period of such
suspension.
I.R.C. § 501(q) Special Rules For Credit Counseling Organizations
I.R.C. § 501(q)(1) In General —
An organization with respect to which the provision of credit counseling services
is a substantial purpose shall not be exempt from tax under subsection (a) unless
such organization is described in paragraph (3) or (4) of subsection (c) and such
organization is organized and operated in accordance with the following requirements:
I.R.C. § 501(q)(1)(A) —
The organization—
I.R.C. § 501(q)(1)(A)(i) —
provides credit counseling services tailored to the specific needs and circumstances
of consumers,
I.R.C. § 501(q)(1)(A)(ii) —
makes no loans to debtors (other than loans with no fees or interest) and does not
negotiate the making of loans on behalf of debtors,
I.R.C. § 501(q)(1)(A)(iii) —
provides services for the purpose of improving a consumer's credit record, credit
history, or credit rating only to the extent that such services are incidental to
providing credit counseling services, and
I.R.C. § 501(q)(1)(A)(iv) —
does not charge any separately stated fee for services for the purpose of improving
any consumer's credit record, credit history, or credit rating.
I.R.C. § 501(q)(1)(B) —
The organization does not refuse to provide credit counseling services to a consumer
due to the inability of the consumer to pay, the ineligibility of the consumer
for debt management plan enrollment, or the unwillingness of the consumer to enroll
in a debt management plan.
I.R.C. § 501(q)(1)(C) —
The organization establishes and implements a fee policy which—
I.R.C. § 501(q)(1)(C)(i) —
requires that any fees charged to a consumer for services are reasonable,
I.R.C. § 501(q)(1)(C)(ii) —
allows for the waiver of fees if the consumer is unable to pay, and
I.R.C. § 501(q)(1)(C)(iii) —
except to the extent allowed by State law, prohibits charging any fee based in whole
or in part on a percentage of the consumer's debt, the consumer's payments to be
made pursuant to a debt management plan, or the projected or actual savings to the
consumer resulting from enrolling in a
debt management plan.
I.R.C. § 501(q)(1)(D) —
At all times the organization has a board of directors or other governing body—
I.R.C. § 501(q)(1)(D)(i) —
which is controlled by persons who represent the broad interests of the public,
such as public officials acting in their capacities as such, persons having special
knowledge or expertise in credit or financial education, and community leaders,
I.R.C. § 501(q)(1)(D)(ii) —
not more than 20 percent of the voting power of which is vested in persons who are
employed by the organization or who will benefit financially, directly or indirectly,
from the organization's activities (other than through the receipt of reasonable
directors' fees or the repayment of consumer debt to creditors other than the credit
counseling organization or its affiliates), and
I.R.C. § 501(q)(1)(D)(iii) —
not more than 49 percent of the voting power of which is vested in persons who are
employed by the organization or who will benefit financially, directly or indirectly,
from the organization's activities (other than through the receipt of reasonable
directors' fees).
I.R.C. § 501(q)(1)(E) —
The organization does not own more than 35 percent of—
I.R.C. § 501(q)(1)(E)(i) —
the total combined voting power of any corporation (other than a corporation which
is an organization described in subsection (c)(3) and exempt from tax under subsection
(a)) which is in the trade or business of lending money, repairing credit, or providing
debt management plan services, payment processing, or similar services,
I.R.C. § 501(q)(1)(E)(ii) —
the profits interest of any partnership
(other than a partnership which is an organization described in subsection (c)(3)
and exempt from tax under subsection (a)) which is in the trade or business of lending
money, repairing credit, or providing debt management plan services, payment processing,
or similar services, and
I.R.C. § 501(q)(1)(E)(iii) —
the beneficial interest of any trust or estate (other than a trust which is an organization
described in subsection (c)(3) and exempt from tax under subsection (a)) which is
in the trade or business of lending money, repairing credit, or providing debt management
plan services, payment processing, or similar services.
I.R.C. § 501(q)(1)(F) —
The organization receives no amount for providing referrals to others for debt
management plan services, and pays no amount to others for obtaining referrals
of consumers.
I.R.C. § 501(q)(2) Additional Requirements For Organizations Described In Subsection
(c)(3)
I.R.C. § 501(q)(2)(A) In General —
In addition to the requirements under paragraph (1), an organization with respect
to which the provision of credit counseling
services is a substantial purpose and which is described in paragraph
(3) of subsection (c) shall not be exempt from tax under subsection
(a) unless such organization is organized and operated in accordance with the
following requirements:
I.R.C. § 501(q)(2)(A)(i) —
The organization does not solicit contributions from consumers during the initial
counseling process or while the consumer is receiving services from the organization.
I.R.C. § 501(q)(2)(A)(ii) —
The aggregate revenues of the organization which are from payments of creditors
of consumers of the organization and which are attributable to debt management plan
services do not exceed the applicable percentage of the total revenues of the organization.
I.R.C. § 501(q)(2)(B) Applicable Percentage
I.R.C. § 501(q)(2)(B)(i) In General —
For purposes of subparagraph (A)(ii), the applicable
percentage is 50 percent.
I.R.C. § 501(q)(2)(B)(ii) Transition Rule —
Notwithstanding clause (i), in the case of an organization with respect to which
the provision of credit counseling services is a substantial purpose and which
is described in paragraph (3)
of subsection (c) and exempt from tax under subsection (a) on the
date of the enactment of this subsection, the applicable percentage is—
I.R.C. § 501(q)(2)(B)(ii)(I) —
80 percent for the first taxable year of such organization beginning after the
date which is 1 year after the date of the enactment of this subsection, and
I.R.C. § 501(q)(2)(B)(ii)(II) —
70 percent for the second such taxable year beginning after such date, and
I.R.C. § 501(q)(2)(B)(ii)(III) —
60 percent for the third such taxable year beginning after such date.
I.R.C. § 501(q)(3) Additional Requirement For Organizations Described In Subsection
(c)(4) —
In addition to the requirements under paragraph (1), an organization with respect
to which the provision of credit counseling services is a substantial purpose and
which is described in paragraph
(4) of subsection (c) shall not be exempt from tax under subsection
(a) unless such organization notifies the Secretary, in such manner as the Secretary
may by regulations prescribe, that it is applying for recognition as a credit
counseling organization.
I.R.C. § 501(q)(4) Credit Counseling Services; Debt Management Plan Services —
For purposes of this subsection—
I.R.C. § 501(q)(4)(A) Credit Counseling Services —
The term “credit counseling services” means—
I.R.C. § 501(q)(4)(A)(i) —
the providing of educational information to the general public on budgeting, personal
finance, financial literacy, saving and spending practices, and the sound use of
consumer credit,
I.R.C. § 501(q)(4)(A)(ii) —
the assisting of individuals and families with financial problems by providing them
with counseling, or
I.R.C. § 501(q)(4)(A)(iii) —
a combination of the activities described in clauses (i) and (ii).
I.R.C. § 501(q)(4)(B) Debt Management Plan Services —
The term “debt management plan services” means services related to
the repayment, consolidation, or restructuring of a consumer's debt, and includes
the negotiation with creditors of lower interest rates, the waiver or reduction
of fees, and the marketing and processing of debt management plans.
I.R.C. § 501(r) Additional Requirements For Certain Hospitals
I.R.C. § 501(r)(1) In General —
A hospital organization to which this subsection applies shall not be treated as described
in subsection (c)(3) unless the organization—
I.R.C. § 501(r)(1)(A) —
meets the community health needs assessment requirements described in paragraph (3),
I.R.C. § 501(r)(1)(B) —
meets the financial assistance policy requirements described in paragraph (4),
I.R.C. § 501(r)(1)(C) —
meets the requirements on charges described in paragraph (5), and
I.R.C. § 501(r)(1)(D) —
meets the billing and collection requirement described in paragraph (6).
I.R.C. § 501(r)(2) Hospital Organizations To Which Subsection Applies
I.R.C. § 501(r)(2)(A) In General —
This subsection shall apply to
I.R.C. § 501(r)(2)(A)(i) —
an organization which operates a facility which is required by a State to be licensed,
registered, or similarly recognized as a hospital, and
I.R.C. § 501(r)(2)(A)(ii) —
any other organization which the Secretary determines has the provision of hospital
care as its principal function or purpose constituting the basis for its exemption
under subsection
(c)(3) (determined without regard to this subsection).
I.R.C. § 501(r)(2)(B) Organizations With More Than 1 Hospital Facility —
If a hospital organization operates more than 1 hospital facility—
I.R.C. § 501(r)(2)(B)(i) —
the organization shall meet the requirements of this subsection separately with respect
to each such facility, and
I.R.C. § 501(r)(2)(B)(ii) —
the organization shall not be treated as described in subsection (c)(3) with respect
to any such facility for which such requirements are not separately met.
I.R.C. § 501(r)(3) Community Health Needs Assessments
I.R.C. § 501(r)(3)(A) In General —
An organization meets the requirements of this paragraph with respect to any taxable
year only if the organization—
I.R.C. § 501(r)(3)(A)(i) —
has conducted a community health needs assessment which meets the requirements of
subparagraph (B) in such taxable year or in either of the 2 taxable years immediately
preceding such taxable year, and
I.R.C. § 501(r)(3)(A)(ii) —
has adopted an implementation strategy to meet the community health needs identified
through such assessment.
I.R.C. § 501(r)(3)(B) Community Health Needs Assessment —
A community health needs assessment meets the requirements of this paragraph if such
community health needs assessment—
I.R.C. § 501(r)(3)(B)(i) —
takes into account input from persons who represent the broad interests of the community
served by the hospital facility, including those with special knowledge of or expertise
in public health, and
I.R.C. § 501(r)(3)(B)(ii) —
is made widely available to the public.
I.R.C. § 501(r)(4) Financial Assistance Policy —
An organization meets the requirements of this paragraph if the organization establishes
the following policies:
I.R.C. § 501(r)(4)(A) Financial Assistance Policy —
A written financial assistance policy which includes—
I.R.C. § 501(r)(4)(A)(i) —
eligibility criteria for financial assistance, and whether such assistance includes
free or discounted care,
I.R.C. § 501(r)(4)(A)(ii) —
the basis for calculating amounts charged to patients,
I.R.C. § 501(r)(4)(A)(iii) —
the method for applying for financial assistance,
I.R.C. § 501(r)(4)(A)(iv) —
in the case of an organization which does not have a separate billing and collections
policy, the actions the organization may take in the event of non-payment, including
collections action and reporting to credit agencies, and
I.R.C. § 501(r)(4)(A)(v) —
measures to widely publicize the policy within the community to be served by the organization.
I.R.C. § 501(r)(4)(B) Policy Relating To Emergency Medical Care —
A written policy requiring the organization to provide, without discrimination, care
for emergency medical conditions (within the meaning of section 1867 of the Social
Security Act (42 U.S.C. 1395dd)) to individuals regardless of their eligibility under the financial assistance policy
described in subparagraph (A).
I.R.C. § 501(r)(5) Limitation On Charges —
An organization meets the requirements of this paragraph if the organization—
I.R.C. § 501(r)(5)(A) —
limits amounts charged for emergency or other medically necessary care provided to
individuals eligible for assistance under the financial assistance policy described
in paragraph (4)(A) to not more than the amounts generally billed to individuals who
have insurance covering such care, and
I.R.C. § 501(r)(5)(B) —
prohibits the use of gross charges.
I.R.C. § 501(r)(6) Billing And Collection Requirements —
An organization meets the requirement of this paragraph only if the organization does
not engage in extraordinary collection actions before the organization has made reasonable
efforts to determine whether the individual is eligible for assistance under the financial
assistance policy described in paragraph (4)(A).
I.R.C. § 501(r)(7) Regulatory Authority —
The Secretary shall issue such regulations and guidance as may be necessary to carry
out the provisions of this subsection, including guidance relating to what constitutes
reasonable efforts to determine the eligibility of a patient under a financial assistance
policy for purposes of paragraph (6).
(Aug. 16, 1954, ch. 736, 68A Stat. 163; Mar. 13, 1956,
ch. 83, 5(2), 70 Stat. 49; Apr. 22, 1960, Pub. L. 86-428, 1, 74 Stat. 54; July 14, 1960, Pub. L. 86-667, 1, 74 Stat. 534; Oct. 16, 1962,Pub. L. 87-834, 8(d), 76 Stat. 997; Feb. 2, 1966, Pub. L. 89-352, 1, 80 Stat. 4; Nov. 8, 1966, Pub. L. 89-800, 6(a), 80 Stat. 1515; June 28, 1968, Pub. L. 90-364, title I, 109(a), 82 Stat. 269; Dec. 30, 1969, Pub. L. 91-172, title I, 101(j)(3)-(6), 121(b)(5)(A), (6)(A), 83 Stat. 526, 527, 541; Dec. 31, 1970, Pub. L. 91-618, 1, 84 Stat. 1855; Aug. 29, 1972, Pub. L. 92-418, 1(a), 86 Stat. 656; June 8, 1974, Pub. L. 93-310, 3(a), 88 Stat. 235; Jan. 3, 1975, Pub. L. 93-625, 10(c), 88 Stat. 2119; Oct. 4, 1976, Pub. L. 94-455, title XIII, 1307(a)(1),
(d)(1)(A), 1312(a), 1313(a), title XIX, 1906(b)(13)(A), title XXI, 2113(a), 2134(b),
90 Stat. 1720, 1727, 1730, 1834, 1907, 1927; Oct. 20, 1976, Pub. L. 94-568, 1(a), 2(a), 90 Stat. 2697; Feb. 10, 1978,Pub. L. 95-227, 4(a), 92 Stat. 15; Aug. 15, 1978, Pub. L. 95-345, 1(a), 92 Stat. 481; Nov. 6, 1978, Pub. L. 95-600, title VII, 703(b)(2),
(g)(2)(A), (B), 92 Stat. 2939, 2940; Apr. 1, 1980, Pub. L. 96-222, title I, 108(b)(2)(B), 94 Stat. 226;
Sept. 26, 1980, Pub. L. 96-364, title II, 209(a), 94 Stat. 1290;
Dec. 24, 1980, Pub. L. 96-601,
3(a), 94 Stat. 3496; Dec. 28, 1980, Pub. L. 96-605, title I, 106(a), 94 Stat. 3523;
Dec. 29, 1981, Pub. L. 97-119, title I, 103(c)(1), 95 Stat. 1638;
Sept. 3, 1982, Pub. L. 97-248, title II, 286(a), title III, 354(a), (b), 96 Stat. 569, 640, 641; Jan. 12, 1983, Pub. L. 97-448, title III, 306(b)(5), 96 Stat. 2406; July 18, 1984, Pub. L. 98-369, div. A, title X,
1032(a), 1079, div. B, title VIII, 2813(b), 98 Stat. 1033, 1056, 1206; Apr. 7, 1986, Pub. L. 99-272, title XI, 11012(b), 100 Stat. 260; Oct. 22, 1986, Pub. L. 99-514, title X, 1012(a), 1024(b), title XI, 1109(a), 1114(b)(14), title XVI, 1603(a),
title XVIII, 1879(k)(1), 1899A(15), 100 Stat. 2390, 2406, 2435, 2451, 2768, 2909, 2959; Dec. 22, 1987, Pub. L. 100-203, title X, 10711(a)(2), 101 Stat. 1330-464; Nov. 10, 1988, Pub. L. 100-647, title I, 1010(b)(4), 1011(c)(7)(D), 1016(a)(1)(A), (2)-(4), 1018(u)(14), (15),
(34), title II, 2003(a)(1), (2), title VI, 6202(a), 102
Stat. 3451, 3458, 3573, 3574, 3590, 3592, 3597, 3598, 3730;
Aug. 9, 1989, Pub. L. 101-73, Sec. 1402(a); Oct. 24, 1992, Pub. L. 102-486, Sec. 1940(a);
Aug. 10, 1993, Pub. L. 103-66, Sec. 13146; Aug. 20, 1996, Pub. L. 104-188, title I, Sec. 1114(a), 1704(j)(5), 110 Stat. 1755;
Aug. 21, 1996,Pub. L. 104-191, title III, Sec. 341(a), 342(a), 110 Stat. 1936;Pub. L. 105-34, title I, IX, X, Sec. 101(c), 963, 974(a), 1042(b), Aug. 5, 1997, 111 Stat 788; Pub. L. 105-206, title VI, Sec. 6023, July 22, 1998, 112 Stat 685; Pub. L. 107-16, title VI, Sec.
611(d)(3)(C), June 7, 2001, 115 Stat. 38; Pub. L. 107-90, Title II, Sec.
202, Dec. 21, 2001, 115 Stat. 878; Pub. L. 108-121, Title I, Sec. 108(a), Nov. 11, 2003, 117 Stat. 1335; Pub. L. 108-218, Sec. 206, Apr. 10, 2004, 118 Stat. 596; Pub. L. 108-357, title III, Sec. 319, Oct. 22, 2004, 118 Stat. 1418; Pub. L. 109-58, title XIII, Sec. 1304, Aug. 8, 2005, 119 Stat. 594; Pub. L. 109-135, title IV, Sec. 412, Dec. 21, 2005, 119 Stat. 2577; Pub. L. 109-280, title VIII, XII, Sec. 862(a), 1220(a), Aug. 17, 2006, 120
Stat. 780; Pub. L. 111-148, Sec. 1322(h)(1), 6301(f), 9007(a), 10903(a), Mar. 23, 2010, 124 Stat. 119; Pub. L. 111-152, Sec. 1004(d)(4), Mar. 30, 2010, 124 Stat. 1029; Pub. L. 113-295, Div. A, title II, Sec. 221(a)(19)(B)(iii), 221(a)(62), Dec. 19, 2014, 128 Stat. 4010; Pub. L. 114-113, Div. Q, title III, Sec. 331(b), Dec. 18, 2015; Pub. L. 115-123, Div. D, title I, Sec. 40501(b)(2), Feb. 9, 2018, 132 Stat. 64; Pub. L. 115-141, Div. U, title I, Sec. 109(b), title IV, Sec. 401(a)(122)-(124), 401(b)(22), Mar.
23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
Amendments to Subchapter
1976--Pub. L. 94-455, title XXI, 2101(d), Oct. 4, 1976, 90 Stat. 1899, added part VII heading.
1975--Pub. L. 93-625, 10(d), Jan. 3, 1975, 88 Stat. 2119, added part VI heading.
1969--Pub. L. 91-172, title I, 101(j)(58), Dec. 30, 1969, 83 Stat. 532, added part II heading, and redesignated former parts II, III and IV as parts III,
IV and V, respectively.
Amendments to Part
1987--Pub. L. 100-203, title X, 10711(b)(2)(B), Dec. 22, 1987, 101 Stat. 1330-464, substituted “substantial lobbying or because of political activities”
for “substantial lobbying” in item 504.
1984--Pub. L. 98-369, div. A, title V, 513(b), July 18, 1984, 98 Stat. 865, added item 505.
1976--Pub. L. 94-455, title XIII, 1307(d)(3)(B), Oct. 4, 1976, 90 Stat. 1728, added item 504.
1969--Pub. L. 91-172, title I, 101(j)(61), Dec. 30, 1969, 83 Stat. 532, struck out item 504 “Denial of exemption”.
AMENDMENTS
2018 -
Subsec. (c)(12)(E). Pub. L. 115-141, Div. U, Sec. 109(b), amended subpar. (E) by substituting “means—“
and clauses (i) and (ii) for “means the Federal Energy Regulatory Commission
and references to such term shall be treated as including the Public Utility Commission
of Texas with respect to any ERCOT utility
(as defined in section 212(k)(2)(B) of the Federal Power Act (16 U.S.C. 824k(k)(2)(B))).”
Subsec. (c)(14)(B)(iv). Pub. L. 115-141, Div. U, Sec. 401(a)(122), amended clause (iv)
by adding a period at the end.
Subsec. (c)(19)(B). Pub. L. 115-141, Div. U, Sec. 401(a)(123), amended subpar. (B)
by substituting “widows,” for “widows,,”.
Subsec. (f)(3)(B). Pub. L. 115-141, Div. U, Sec. 401(a)(124), amended subpar. (B)
by substituting ‘‘section 115’’ for ‘‘section
115(a)’’.
Subsec. (p)(4). Pub. L. 115-141, Div. U, Sec. 401(b)(22), amended par. (4) by striking “, 556(b)(2)”.
Subsec. (c)(12)(I). Pub. L. 115-123, Sec. 40501(b)(2), added subpar. (I).
2015 -
Subsec. (h)(4)(E)-(G). Pub. L. 114-113, Div. Q, Sec. 331(b), amended par. (4) by redesignating subpar. (E)
and (F) as subpar. (F) and (G), respectively, and by adding a new subpar. (E).
2014 - Subsec. (c)(20). Pub. L. 113-295, Div. A, Sec. 221(a)(19)(B)(iii), struck par. (20). Before being struck, it read
as follows:
“(20) an organization or trust created or organized in the United States,
the exclusive function of which is to form part of a qualified group legal services
plan or plans, within the meaning of section 120. An organization or trust which
receives contributions because of section 120(c)(5)(C) shall not be prevented from
qualifying as an organization described in this paragraph merely because it provides
legal services or indemnification against the cost of legal services unassociated
with a qualified group legal services plan.”
Subsec. (s). Pub. L. 113-295, Div. A, Sec. 221(a)(62), struck subsec.
(s). Before being struck, it read as follows:
“(s) Cross Reference.—For nonexemption of Communist-controlled organizations,
see section 11(b) of the Internal Security Act of 1950 (64 Stat. 997; 50 U.S.C. 790(b)).”
2010 - Subsec. (c)(9). Pub. L. 111-152, Sec. 1004(d)(4), amended par. (9) by adding the sentence at the end.
Subsec. (c)(29). Pub. L. 111-148, Sec. 1322(h)(1)), amended subsec. (c) by adding par. (29).
Subsec. (l)(4). Pub. L. 111-148, Sec. 6301(f), amended subsec. (l) by adding par. (4).
Subsec. (r)-(s). Pub. L. 111-148, Sec. 9007(a), redesignated subsec. (r) as subsec. (s) and added subsec. (r).
Subsec. (r)(5)(A). Pub. L. 111-148, Sec. 10903(a), amended subpar. (A) by substituting “the amounts generally billed”
for “the lowest amounts charged”.
2006 - Subsec. (c)(21)(C). Pub. L. 109-280, Sec. 862(a), amended so much of subpar. (C) as preceded the last sentence. Before amendment,
it read as follows:
“(C) Payments described in subparagraph (A)(i)(IV)
may be made from such trust during a taxable year only to the extent that the aggregate
amount of such payments during such taxable year does not exceed the lesser of --
“(i) the excess (if any) (as of the close of the preceding taxable year) of
--
“(I) the fair market value of the assets of the trust, over
“(II) 110 percent of the present value of the liability described in subparagraph
(A)(i)(I) of such person, or
“(ii) the excess (if any) of --
“(I)the sum of a similar excess determined as of the close of the last taxable
year ending before the date of the enactment of this subparagraph plus earnings thereon
as of the close of the taxable year preceding the taxable year involved, over
“(II) the aggregate payments described in subparagraph
(A)(i)(IV) made from the trust during all taxable years beginning after the date of
the enactment of this subparagraph.”
Subsec. (q)-(r). Pub. L. 109-280, Sec. 1220(a), redesignated subsec. (q) as subsec. (r) and added a new subsec. (q).
2005 - Subsec. (c)(12)(F).Pub. L. 109-135, Sec. 412(bb)(1), amended subpar. (F) by substituting “subparagraph (C)(iv)” for “subparagraph
(C)(iii)”.
Subsec. (c)(12)(G). Pub. L. 109-135, Sec. 412(bb)(2), amended subpar. (G) by substituting “subparagraph (C)(v)” for “subparagraph
(C)(iv)”.
Subsec. (c)(22)(B)(ii). Pub. L. 109-135, Sec. 412(cc), amended clause (ii) by substituting “clause (ii) of paragraph (21)(D)"
for “clause (ii) of paragraph (21)(B)”.
Subsec. (c)(12)(C). Pub. L. 109-58, Sec. 1304(a), amended subpar. (C) be striking the last sentence. Before being struck it read as
follows:
“Clauses (ii) through (v) shall not apply to taxable years beginning
after December 31, 2006.”
Subsec. (c)(12)(H)(x). Pub. L. 109-58, Sec. 1304(b), struck clause (x). Before being struck, it read as follows:
“(x) This subparagraph shall not apply to taxable years beginning after December
31, 2006.”
2004 - Subsec. (c)(12)(C).Pub. L. 108-357, Sec. 319(a)(1), amended clause (C) by striking clause (ii) and adding clauses (ii)
through (v). Prior to being struck, clause (ii) read as follows:
“(ii) from the prepayment of a loan under section 306A, 306B, or 311 of the
Rural Electrification Act of 1936 (as in effect on January 1, 1987).”
Subsec. (c)(12)(E)-(H). Pub. L. 108-357, Sec. 319, amended par. (12) by adding subpar. (E), (F), (G), and (H).
Subsec. (c)(15)(A). Pub. L. 108-218, Sec. 206(a), amended subpar. (A). Before amendment it read as follows:
“(A) Insurance companies or associations other than life (including interinsurers
and reciprocal underwriters) if the net written premiums (or, if greater, direct written
premiums)
for the taxable year do not exceed $350,000.”
Subsec. (c)(15)(C). Pub. L. 108-218, Sec. 206(b), amended subpar. (C) by inserting “, except that in applying section 831(b)(2)(B)(ii)
for purposes of this subparagraph, subparagraphs
(B) and (C) of section 1563(b)(2) shall be disregarded” before the period at
the end.
2003-Subsec. (c)(19)(B). Pub. L. 108-121, Sec. 105(a), amended subpar. (B) by substituting “, widowers, ancestors, or lineal descendants”
for “or widowers”.
Subsec. (p)-(q). Pub. L. 108-121, Sec. 108(a), redesignated subsec. (p) as subsec. (q) and added a new subsec. (p).
2001 - Subsec. (c)(28). Pub. L. 107-90, Sec. 202, added par. (28).
Subsec. (c)(18)(D)(iii). Pub. L. 107-16, Sec. 611(d)(3)(C), amended clause (iii) by striking “(other than paragraph (4) thereof)"
after section “402(g)”.
1998 - Subsec. (n)(3). Pub. L. 105-206, Sec. 6023(6), amended par. (3) by substituting “subparagraph (E)(ii)” for “subparagraph
(C)(ii)”.
Subsec. (o). Pub. L. 105-206, Sec. 6023(7), amended subsec. (o) by substituting “section 1855(d)” for “section
1853(e)”.
1997--Subsec. (c)(26). Pub. L. 105-34, Sec. 101(c), added the flush sentence at the end of par. (26).
Subsec. (c)(27). Pub. L. 105-34, Sec. 963, amended par. (27) by adding
“(A)” after “(27)”; redesignating (A), (B), and (C) as clauses
(I),
(ii), and (iii), respectively; redesignating (B)(i) and (ii) as
subclauses (I) and (II); redesignated (C)(i) and (ii) as subclauses
(I) and (II); and added a new subpar. (B).
Subsec. (e)(1)(A). Pub. L. 105-34, Sec. 974(a), inserted “(including the purchase of patron accounts receivable on a recourse
basis)” after “billing and collection”.
Subsec. (o). Pub. L. 105-33, Sec. 4041(a), redesignated subsec. (o)
as subsec. (p) and added a new subsec. (o).
1996--Subsec. (c)(4). Pub. L. 104-168, 1311(b), inserted
“(A)” after “(4)” and added subparagraph (B).
Subsec. (c)(26). Pub. L. 104-191, 341(a), added par. (26).
Subsec. (c)(27). Pub. L. 104-191, 342(a), added par. (27).
Subsec. (c)(21)(D)(ii). Pub. L. 104-188, Sec. 1704(j)(5), substituted “section 101(7)” for “section 101(6)” and substituted
“1752(7)” for “1752(6)” in subclause (III).
Subsec. (n), (o). Pub. L. 104-188, Sec. 1114(a), redesignated subsec. (n) as subsec. (o), and added new subsec. (n).
1993 - Subsec. (c)(2). Pub. L. 103-66, Sec. 13146(b), amended par. (2) by adding the sentence at the end.
Subsec. (c)(25). Pub. L. 103-66, Sec. 13146(a), added par. (25).
1992 - Subsec. (c)(21). Pub. L. 103-66, Sec. 13146(b), amended par. (21). Before amendment it read as follows:
“(21) A trust or trusts established in writing, created or organized in the
United States, and contributed to by any person (except an insurance company) if-
“(A) the purpose of such trust or trusts is exclusively-
“(i) to satisfy, in whole or in part, the liability of such person for, or with
respect to, claims for compensation for disability or death due to pneumoconiosis
under Black Lung Acts;
“(ii) to pay premiums for insurance exclusively covering liability; and
“(iii) to pay administrative and other incidental expenses of such trust (including
legal, accounting, actuarial, and trustee expenses) in connection with the operation
of the trust and the processing of claims against such person under Black Lung Acts;
and
“(B) no part of the assets of the trust may be used for, or diverted to, any
purpose other than-
“(i) the purpose described in subparagraph (A), or
“(ii) investment (but only to the extent that the trustee determines that a
portion of the assets is not currently needed for the purposes described in subparagraph
(A)) in-
“(I) public debt securities of the United States,
“(II) obligations of a State or local government which are not in default as
to principal or interest, or
“(III) time or demand deposits in a bank (as defined in section 581) or an insured
credit union (within the meaning of section 101(6) of the Federal Credit Union Act.
12 U.S.C. 1752(6)) located in the United States, or
“(iii) payment into the Black Lung Disability Trust Fund established under section
9501, or into the general fund of the United States Treasury (other than in satisfaction
of any tax or other civil or criminal liability of the person who established or contributed
to the trust).
“For purposes of this paragraph the term “Black Lung Acts” means
part C of title IV of the Federal Mine Safety and Health Act of 1977, and any State
law providing compensation for disability or death due to pneumoconiosis.”
1989—Subsec. (l). Pub. L. 101-73, Sec. 1402(a), amended subsec. (l). Before amendment, it read as follows:
“(l) Government Corporations Exempt Under Subsection (c)(1).—The organization
described in this subsection is the Central Liquidity Facility established under
title III of the Federal Credit Union Act (12
U.S.C. 1795 et seq.).”
1988--Subsec. (c)(1). Pub. L. 100-647, 1018(u)(15), substituted
“Any” for “any”.
Subsec. (c)(12)(B)(iv). Pub. L. 100-647, 2003(a)(1), added cl. (iv).
Subsec. (c)(12)(C). Pub. L. 100-647, 2003(a)(2), amended subpar. (C) generally. Prior to amendment, subpar. (C) read
as follows: “In the case of a mutual or cooperative electric company, subparagraph
(A) shall be applied without taking into account any income received or accrued from
qualified pole rentals.”
Subsec. (c)(17)(A)(ii), (iii), (18)(B), (C). Pub. L. 100-647, 1018(u)(34), made technical amendments to Pub. L. 99-154, 1114(b)(14). See 1986 Amendment note below.
Subsec. (c)(18)(D)(iv). Pub. L. 100-647, 1011(c)(7)(D), added cl. (iv).
Subsec. (c)(23). Pub. L. 100-647, 1018(u)(14), substituted “Any” for “any”.
Subsec. (c)(25)(A). Pub. L. 100-647, 1016(a)(1)(A), inserted at end “For purposes of clause (iii), the term ‘real
property’ shall not include any interest as a tenant in common (or similar interest)
and shall not include any indirect interest.”
Subsec. (c)(25)(C)(v). Pub. L. 100-647, 1016(a)(3)(B), struck out cl. (v) which read as follows: “any organization
described in this paragraph.”
Subsec. (c)(25)(D). Pub. L. 100-647, 1016(a)(2), substituted “A corporation or trust shall in no event be treated
as described in subparagraph
(A) unless such corporation or trust permits its shareholders or beneficiaries"
for “A corporation or trust described in this paragraph must permit its shareholders
or beneficiaries” in introductory text.
Subsec. (c)(25)(E), (F). Pub. L. 100-647, 1016(a)(3)(A),
(4), added subpars. (E) and (F).
Subsec. (e)(1)(A). Pub. L. 100-647, 6202(a), inserted “(including the purchasing of insurance on a group basis)”
after “purchasing”.
Subsec. (m)(3)(E). Pub. L. 100-647, 1010(b)(4)(A), added subpar. (E).
Subsec. (m)(5). Pub. L. 100-647, 1010(b)(4)(B), added par. (5).
1987--Subsec. (c)(3). Pub. L. 100-203 inserted “(or in opposition to)” after “in behalf of”.
1986--Subsec. (c)(1)(A)(i).Pub. L. 99-514, 1899A(15), substituted
“July 18, 1984” for “the date of the enactment of the Tax Reform
Act of 1984”.
Subsec. (c)(14)(B)(iv). Pub. L. 99-514, 1879(k)(1), added cl. (iv).
Subsec. (c)(15). Pub. L. 99-514, 1024(b), amended par. (15) generally. Prior to amendment, par. (15) read as follows:
“Mutual insurance companies or associations other than life or marine (including
inter-insurers and reciprocal underwriters) if the gross amount received during the
taxable year from the items described in section 822(b) (other than paragraph (1)(D)
thereof) and premiums (including deposits and assessments)
does not exceed $150,000.”
Subsec. (c)(17)(A)(ii), (iii), (18)(B), (C). Pub. L. 99-514, 1114(b)(14), as amended by Pub. L. 100-647, 1018(u)(34), substituted “highly compensated employees (within the meaning
of section 414(q))” for “officers, shareholders, persons whose principal
duties consist of supervising the work of other employees, or highly compensated employees”.
Subsec. (c)(18)(D). Pub. L. 99-514, 1109(a), added subpar. (D).
Subsec. (c)(24). Pub. L. 99-272 added par. (24).
Subsec. (c)(25). Pub. L. 99-514, 1603(a), added par. (25).
Subsecs. (m), (n). Pub. L. 99-514, 1012(a), added subsec. (m) and redesignated former subsec. (m) as (n).
1984--Subsec. (c)(1). Pub. L. 98-369, 2813(b)(2), designated existing provisions as subpar. (A) and added subpar. (B).
Subsec. (c)(1)(A). Pub. L. 98-369, 1079, substituted provisions referring to corporations exempt from Federal income
taxes under any Act of Congress as amended and supplemented before July 18, 1984,
or under this title without regard to any provision of law not contained in this title
and not contained in a revenue Act for provisions referring to corporations exempt
from Federal income taxes under any Act of Congress as amended and supplemented.
Subsec. (k). Pub. L. 98-369, 1032(a), added subsec. (k). Former subsec.
(k) redesignated (l).
Subsec. (l). Pub. L. 98-369, 2813(b)(1), added subsec. (l). Former subsec. (l) redesignated (m).
Pub. L. 98-369, 1032(a), redesignated former subsec. (k) as (l).
Subsec. (m). Pub. L. 98-369, 2813(b)(1), redesignated former subsec.
(l) as (m).
1983--Subsec. (c)(23). Pub. L. 97-448 substituted “75 percent"
for “25 percent”.
1982--Subsec. (c)(19). Pub. L. 97-248, 354(a)(1), substituted
“past or present members of the Armed Forces of the United States"
for “war veterans” after “A post or organization of”.
Subsec. (c)(19)(B). Pub. L. 97-248, 354(a)(2), substituted “past or present members of the Armed Forces of the
United States” for “war veterans"
wherever appearing, struck out “veterans (but not war veterans), or are”
after “individuals who are”, and substituted “or of cadets”
for
“or such individuals” before “,and”.
Subsec. (c)(23). Pub. L. 97-248, 354(b), added par. (23).
Subsecs. (j), (k). Pub. L. 97-248, 286(a), added subsec. (j) and redesignated former subsec. (j) as (k).
1981--Subsec. (c)(21)(B)(iii).Pub. L. 97-119 substituted “established under section 9501” for “established under
section 3 of the Black Lung Benefits Revenue Act of 1977”.
1980--Subsec. (c)(12). Pub. L. 96-605 designated existing provision as subpar. (A), struck out provision that, in the case
of any mutual or cooperative telephone company, the 85 per cent or more income requirement
be applied without taking into account any income received or accrued from a nonmember
telephone company for the performance of communication services which involve members
of such mutual or cooperative telephone company, and added subpars. (B) to (D).
Subsec. (c)(21). Pub. L. 96-222 substituted “Federal Mine Safety and Health Act of 1977” for “Federal
Coal Mine Health and Safety Act of 1969”.
Subsec. (c)(22). Pub. L. 96-364 added par. (22).
Subsec. (i). Pub. L. 96-601 inserted provision that the restriction on religious discrimination not apply to
an auxiliary of a fraternal beneficiary society if the society is described in subsec.
(c)(8)
of this section, is exempt from income tax under subsec. (a) of this section, and
limits its membership to the members of a particular religion or to a club which in
good faith limits its membership to the members of a particular religion in order
to further the teachings or principles of that religion, and not to exclude individuals
of a particular race or color.
1978--Subsec. (c)(12). Pub. L. 95-345 inserted provision relating to applicability of statutory provisions to mutual or
cooperative telephone company of income received or accrued from a nonmember telephone
company.
Subsec. (c)(20). Pub. L. 95-600, 703(b)(2), substituted “this paragraph"
for “section 501(c)(20)”.
Subsec. (c)(21). Pub. L. 95-227 added par. (21).
Subsecs. (g), (i). Pub. L. 95-600, 703(g)(2)(B), redesignated subsec. (g), which was added by section 2(a) of Pub. L. 94-568, as subsec. (i). Former subsec. (i), relating to cross reference, redesignated (j).
Subsecs. (i), (j). Pub. L. 95-600, 703(g)(2)(A), amended Pub. L. 95-600, 2(a). See 1976 Amendment note below.
1976--Subsec. (c)(3). Pub. L. 94-455, 1313(a), 1307(d)(1)(A), inserted “or to foster national or international amateur
sports competition
(but only if no part of its activities involve the provision of athletic facilities
or equipment)” after “educational purposes” and inserted
“(except as otherwise provided in subsection (h))” after “influence
legislation”.
Subsec. (c)(7). Pub. L. 94-568, 1(a), struck out requirement that clubs be “operated exclusively” for
specified purposes but required that substantially all of club activities be for specified
purposes.
Subsec. (c)(17), (18). Pub. L. 94-455, 1906(b)(13)(A), struck out “or his delegate"
after “Secretary”.
Subsec. (c)(20). Pub. L. 94-455, 2134(b), added par. (20).
Subsec. (e)(1)(A). Pub. L. 94-455, 1312(a), inserted “clinical” after “food”.
Subsec. (g). Pub. L. 94-568, 2(a), added subsec. (g) relating to prohibition of discrimination by certain social
clubs.
Pub. L. 94-455, 2113(a), added subsec. (g) defining agricultural. Former subsec. (g)
redesignated (h).
Subsec. (h). Pub. L. 94-455, 1307(a)(1), 2113(a), added subsec. (h). Former subsec. (g), relating to cross reference,
redesignated (h)
and further redesignated (i).
Subsec. (i). Pub. L. 94-568, 2(a), as amended byPub. L. 95-600, 703(g)(2)(A), added subsec. (i). Former subsec. (i) redesignated (j).
Pub. L. 94-455, 1307(a)(1), redesignated subsec. (h), relating to cross reference, as (i).
Subsec. (j). Pub. L. 94-568, 2(a), as amended byPub. L. 95-600, 703(g)(2)(A), redesignated subsec. (i), relating to cross reference, as (j).
1975--Subsec. (b). Pub. L. 93-625 inserted references to part VI of this subchapter.
1974--Subsecs. (f), (g).Pub. L. 93-310 added subsec. (f)
and redesignated former subsec. (f) as (g).
1972--Subsec. (c)(19). Pub. L. 92-418 added par. (19).
1970--Subsec. (c)(13). Pub. L., 91-618 substituted “corporation chartered solely
for the purpose of disposal of bodies by burial or cremation which is not permitted"
for “corporation chartered solely for burial purposes as a cemetery corporation
and is not permitted”.
1969--Subsec. (a). Pub. L. 91-172, 101(j)(3), struck out reference to section 504.
Subsec. (b). Pub. L. 91-172, 101(j)(4), inserted reference to certain other activities in heading and to part
III in text, and struck out reference to tax on unrelated income.
Subsec. (c). Pub. L. 91-172, 101(j)(5), 121(b)(6)(A), substituted “part IV” for “part III”
after “Corporations organized by an association subject to” and added
par. 18.
Subsec. (c)(9). Pub. L. 91-172, 121(b)(5)(A), inserted reference to designated beneficiaries and struck out reference
to 85 percent or more income of voluntary employees' beneficiary associations.
Subsec. (c)(10). Pub. L. 91-172, 121(b)(5)(A), substituted provisions concerning domestic fraternal societies, orders,
or associations, operating under the lodge system, for provisions covering voluntary
employees' beneficiary associations which would pay benefits to designated beneficiaries
of members.
Subsec. (e). Pub. L. 91-172, 101(j)(6), substituted “section 170(b)(1)(A)(iii)"
for “section 503(b)(5)” in last sentence.
1968--Subsecs. (e), (f).Pub. L. 90-364 added subsec. (e)
and redesignated former subsec. (e) as (f).
1966--Subsec. (c)(6). Pub. L. 89-800 inserted reference to professional football leagues (whether or not administering
a pension fund for football players).
Subsec. (c)(14). Pub. L. 89-352 designated as subpar. (A) provisions covering credit unions which were formerly set
out preceding subpar. (A), designated as subpar. (B) and clauses (i), (ii), and (iii)
thereunder provisions covering corporation or associations without capital stock organized
before Sept. 1, 1957, which formerly were set out as provisions preceding subpar.
(A) and as subpars. (A), (B), and (C) respectively, and added subpar. (C).
1962--Subsec. (c)(15). Pub. L. 87-834 substituted “$150,000"
for “$75,000”.
1960--Subsec. (c)(14). Pub. L. 86-428 substituted “September 1, 1957” for “September 1, 1951”.
Subsec. (c)(17). Pub. L. 86-667 added par. (17).
1956--Subsec. (c)(15). Act Mar. 13, 1956, substituted “the items described in section
822(b)
(other than paragraph (1)(D) thereof)” for “interest, dividends, rents,”.
EFFECTIVE DATE OF 2018 AMENDMENTS
Amendment by Pub. L. 115-141, Div. U, Sec. 109(b), effective as if included in Section 11125 of the Safe, Accountable,
Flexible, Efficient Transportation Equity Act: A Legacy for Users
[Pub. L. 109-59, effective on July 1, 2008, but shall not apply to taxes imposed for periods before
such date].
Amendments by Pub. L. 115-141, Div. U, Sec. 401(a)(122)-(124), (b)(22), effective March 23, 2018.
Sec. 401(e) of Pub. L. 115-141, Div. U, provided the following savings provision:
“(e) General Savings Provision With Respect To Deadwood Provisions.—If—
“(1) any provision amended or repealed by the amendments made by subsection
(b) or (d)
applied to—
“(A) any transaction occurring before the date of the enactment of this Act,
“(B) any property acquired before such date of enactment, or
“(C) any item of income, loss, deduction, or credit taken into account before
such date of enactment, and
“(2) the treatment of such transaction, property, or item under such provision
would
(without regard to the amendments or repeals made by such subsection)
affect the liability for tax for periods ending after such date of enactment,
“nothing in the amendments or repeals made by this section shall be construed
to affect the treatment of such transaction, property, or item for purposes of determining
liability for tax for periods ending after such date of enactment.”
EFFECTIVE DATE OF 2015 AMENDMENTS
Amendments by Pub. L. 114-113, Div. Q, Sec. 331(b), effective for contributions made on or after the date of the
enactment of this Act [Enacted: Dec. 18, 2015].
EFFECTIVE DATE OF 2014 AMENDMENTS
Amendments by Pub. L. 113-295, Div. A, Sec. 221(a), effective on the date of the enactment of this Act [Enacted:
Dec. 19, 2014].
Section 221(b)(2) of Pub. L. 113-295, Div. A, provided the following Savings Provision:
“(2)
SAVINGS PROVISION.—If—
“(A)
any provision amended or repealed by the amendments made by this section applied to—
“(i)
any transaction occurring before the date of the enactment of this Act [Enacted: Dec.
19, 2014],
“(ii)
any property acquired before such date of enactment, or
“(iii)
any item of income, loss, deduction, or credit taken into account before such date
of enactment, and
“(B)
the treatment of such transaction, property, or item under such provision would (without
regard to the amendments or repeals made by this section)
affect the liability for tax for periods ending after date of enactment, nothing in
the amendments or repeals made by this section shall be construed to affect the treatment
of such transaction, property, or item for purposes of determining liability for tax
for periods ending after such date of enactment.”
EFFECTIVE DATE OF 2010 AMENDMENTS
Amendment by Sec. 1004(d) of Pub. L. 111-152 effective on the date of the enactment of this Act [Enacted: Mar. 30, 2010].
Amendment by Sec. 1322(h)(1) of Pub. L. 111-148 effective on the date of the enactment of this Act [Enacted: Mar. 23, 2010].
Amendment by Sec. 6301(f) of Pub. L. 111-148 effective on the date of the enactment of this Act [Enacted: Mar. 23, 2010].
Amendment by Sec. 9007(a) of Pub. L. 111-148 effective for taxable years beginning after the date of the enactment of this Act
[Enacted:
Mar. 23, 2010], except that section 501(r)(3) is effective for taxable years beginning
after the date which is 2 years after the date of the enactment of this Act.
Amendment by Sec. 10903(a) of Pub. L. 111-148 effective taxable years beginning after the date of the enactment of this Act [Enacted:
Mar. 23, 2010].
EFFECTIVE DATE OF 2006 AMENDMENTS
Amendment by Sec. 862 of Pub. L. 109-280 effective for taxable years beginning after December 31, 2006.
Amendments by Sec. 1220 of Pub. L. 109-280 effective for taxable years beginning after the date of the enactment of this Act
[Enacted:
Aug. 17, 2006]. Sec. 1220(c)(2) of Pub. L. 109-280 provided the following transitional rule:
“TRANSITION RULE FOR EXISTING ORGANIZATIONS- In the case of any organization
described in paragraph (3) or (4) section 501(c) of the Internal Revenue Code of 1986 and with respect to which the provision of credit counseling services is
a substantial purpose on the date of the enactment of this Act, the amendments made
by this section shall apply to taxable years beginning after the date which is 1
year after the date of the enactment of this Act [Enacted:
Aug. 17, 2006].
EFFECTIVE DATE OF 2005 AMENDMENTS
Amendments by Sec. 412 of Pub. L. 109-135 effective on the date of the enactment of this Act [Enacted: Dec. 21, 2005].
Amendments by Sec. 1304 of Pub. L. 109-58 effective on the date of the enactment of this Act [Enacted: Aug. 8, 2005].
EFFECTIVE DATE OF 2004 AMENDMENTS
Amendments by Sec. 319 of Pub. L. 108-357 effective for taxable years beginning after the date of the enactment of this Act
[Oct. 22, 2004].
Amendments by Sec. 206 of Pub. L. 108-218 effective for taxable years beginning after December 31, 2003. Sec. 206(e)(2) of Pub. L. 108-218 provided the following transition rule:
“(2) TRANSITION RULE FOR COMPANIES IN RECEIVERSHIP OR LIQUIDATION.--In the case
of a company or association which--
“(A) for the taxable year which includes April 1, 2004, meets the requirements
of section 501(c)(15)(A)
of the Internal Revenue Code of 1986, as in effect for the last taxable year beginning before January 1, 2004,
and
“(B) on April 1, 2004, is in a receivership, liquidation, or similar proceeding
under the supervision of a State court, the amendments made by this section shall
apply to taxable years beginning after the earlier of the date such proceeding ends
or December 31, 2007.”
EFFECTIVE DATE OF 2003 AMENDMENTS
Amendment by Sec. 105(a) of Pub. L. 108-121 effective for taxable years beginning after the date of the enactment of this Act
[Enacted:
Nov. 11, 2003].
Amendments by Sec. 108(a) of Pub. L. 108-121 effective for designations made before, on or after the date of the enactment of
this Act [Enacted:
Nov. 11, 2003].
EFFECTIVE DATE OF 2001 AMENDMENTS
Amendment by Sec. 202 of Pub. L. 107-90 effective on the date of the enactment of this Act [Enacted: Dec. 21, 2001].
Amendment by Sec. 611(d)(3)(C) of Pub. L. 107-16 applicable to years beginning after December 31, 2001.
Section 901 (Sunset of Provisions of Act) of Pub. L. 107-16, as amended by Pub. L. 107-358, provided that:
“(a) IN GENERAL.--All provisions of, and amendments made by, this Act shall
not apply--
“(1) to taxable, plan, or limitation years beginning after December 31, 2010,
or
“(2) in the case of title V, to estates of decedents dying, gifts made, or generation
skipping transfers, after December 31, 2010.
“(b) APPLICATION OF CERTAIN LAWS.--The Internal Revenue Code of 1986 and the Employee Retirement Income Security Act of 1974 shall be applied
and administered to years, estates, gifts, and transfers described in subsection (a)
as if the provisions and amendments described in subsection (a) had never been enacted.
“(c) EXCEPTION.-Subsection (a) shall not apply to section 803 (relating to no
federal income tax on restitution received by victims of the Nazi regime or their
heirs or estates).”
PENSIONS AND INDIVIDUAL RETIREMENT ARRANGEMENT PROVISIONS OF ECONOMIC GROWTH AND
TAX RELIEF RECONCILIATION ACT OF 2001 MADE PERMANENT
Section 811 of Pub. L. 109-280 provided that:
“Title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001
shall not apply to the provisions of, and amendments made by, subtitles A through
F of title VI of such Act (relating to pension and individual retirement arrangement
provisions).”
EFFECTIVE DATE OF 1998 AMENDMENTS
Amendments by Sec. 6023 of Pub. L. 105-206 applicable on the date of the enactment of this Act [Enactment Date: July 22, 1998].
EFFECTIVE DATE OF 1997 AMENDMENTS
Amendment by Sec. 101(c) of Pub. L. 105-34 applicable to taxable years beginning after December 31, 1997.
Amendments by Sec. 963 of Pub. L. 105-34 applicable to taxable years beginning after December 31, 1997.
Amendment by Sec. 974(a) of Pub. L. 105-34 applicable to taxable years beginning after December 31, 1996.
Amendment by Sec. 4041(a) of Pub. L. 105-33 effective on the date of the enactment of this Act [enacted: Aug. 5, 1997].
EFFECTIVE DATE OF 1996 AMENDMENTS
Amendment by section 1311(b) of Pub. L. 104-168 generally applicable to inurement occurring on or after Sept. 14, 1995, with exception
in cases of inurement occurring before Jan. 1, 1997, pursuant to a written contract
which was binding on Sept. 13, 1995, and at all times thereafter before such inurement
occurred.
Amendment by section 341(a) of Pub. L. 104-191 applicable to taxable years beginning after Dec. 31, 1996.
Amendment by section 342(a) of Pub. L. 104-191 applicable to taxable years ending after the date of the enactment of this Act [Aug.
21, 1996].
Amendment by section 1114(a) of Pub. L. 104-188 applicable to taxable years beginning after the date of the enactment of this Act
[Aug. 20, 1996].
EFFECTIVE DATE OF 1993 AMENDMENTS
Amendments by section 13146 of Pub. L. 103-66 applicable to taxable years beginning on or after January 1, 1994.
EFFECTIVE DATE OF 1992 AMENDMENTS
Amendment by section 1940(a) of Pub. L. 102-486 applicable for taxable years beginning after December 31, 1991.
EFFECTIVE DATE OF 1989 AMENDMENTS
Amendment by section 1402(a) of Pub. L. 101-73 effective on the date of the enactment of this Act [Enacted: Aug. 9, 1989].
EFFECTIVE DATE OF 1988 AMENDMENTS
Amendment by section 1011(c)(7)(D) of Pub. L. 100-647 applicable to plan years beginning after Dec. 31, 1987, with exception in case of
a plan described in section 1105(c)(2) of Pub. L. 99-514, see section 1011(c)(7)(E) of Pub. L. 100-647, set out as a note under section 401 of this title.
Section 1016(a)(1)(B) of Pub. L. 100-647 provided that:
“The amendment made by subparagraph (A) [amending this section] shall apply
with respect to property acquired by the organization after June 10, 1987, except
that such amendment shall not apply to any property acquired after June 10, 1987,
pursuant to a binding written contract in effect on June 10, 1987, and at all times
thereafter before such acquisition.”
Amendment by sections 1010(b)(4), 1016(a)(2)-(4), and 1018(u)(14), (15), (34) of Pub. L. 100-647 effective, except as otherwise provided, as if included in the provision of the Tax
Reform Act of 1986, Pub. L. 99-514, to which such amendment relates, see section 1019(a) of Pub. L. 100-647, set out as a note under section 1 of this title.
Section 2003(a)(3) of Pub. L. 100-647 provided that: “The amendments made by this subsection [amending this section]
shall apply to taxable years ending after the date of the enactment of the Omnibus
Budget Reconciliation Act of 1986 [Oct. 21, 1986].”
Section 6202(b) of Pub. L. 100-647 provided that: “The amendment made by subsection (a) [amending this section]
shall apply to purchases before, on, or after the date of the enactment of this Act
[Nov. 10, 1988].”
EFFECTIVE DATE OF 1987 AMENDMENTS
Amendment by Pub. L. 100-203 applicable with respect to activities after Dec. 22, 1987, see section 10711(c) of Pub. L. 100-203, set out as a note under section 170 of this title.
EFFECTIVE DATE OF 1986 AMENDMENTS
Amendment by section 1012(a) of Pub. L. 99-514 applicable to taxable years beginning after Dec. 31, 1986, see section 1012(c) of Pub. L. 99-514, set out as an Effective Date note under section 833 of this title.
Amendment by section 1024(b) of Pub. L. 99-514 applicable to taxable years beginning after Dec. 31, 1986, see section 1024(e) of Pub. L. 99-514, set out as a note under section 831 of this title.
Amendment by section 1109(a) of Pub. L. 99-514 applicable to taxable years beginning after Dec. 31, 1986, see section 1109(c) of Pub. L. 99-514, set out as a note under section 219 of this title.
Amendment by section 1114(b)(14) of Pub. L. 99-514 applicable to years beginning after Dec. 31, 1986, see section 1114(c)(1) of Pub. L. 99-514, set out as a note under section 414 of this title.
Section 1603(c) of Pub. L. 99-514 provided that: “The amendments made by this section [amending sections 501
and 514 of this title] shall apply to taxable years beginning after December 31, 1986.”
Section 1879(k)(2) of Pub. L. 99-514 provided that: “The amendments made by this subsection [amending this section]
shall apply to taxable years ending after August 13, 1981.”
Amendment by Pub. L. 99-272 effective Jan. 1, 1986, with certain exceptions, see section 11019 of Pub. L. 99-272, set out as a note under section 1341 of Title 29, Labor.
EFFECTIVE DATE OF 1984 AMENDMENTS
Amendment by section 1032 of Pub. L. 98-369 applicable to taxable years beginning after July 18, 1984, see section 1032(c) of Pub. L. 98-369, set out as a note under section 170 of this title.
Amendment by section 2813(b) of Pub. L. 98-369 effective Oct. 1, 1979, see section 2813(c) of Pub. L. 98-369, set out as an Effective Date note under section 1795k of Title 12, Banks and Banking.
EFFECTIVE DATE OF 1983 AMENDMENTS
Amendment by Pub. L. 97-448 effective as if included in the provisions of the Tax Equity and Fiscal Responsibility
Act of 1982, Pub. L. 97-248, to which such amendment relates, see section 311(d) of Pub. L. 97-448, set out as a note under section 31 of this title.
EFFECTIVE DATE OF 1982 AMENDMENTS
Section 286(c) of Pub. L. 97-248 provided that: “The amendments made by this section [amending sections 170,
501, 2055, and 2522 of this title]
shall take effect on October 5, 1976.”
Section 354(c) of Pub. L. 97-248 provided that: “The amendments made by subsections (a) and (b) [amending this
section] shall apply to taxable years beginning after the date of the enactment of
this Act [Sept. 3, 1982].”
EFFECTIVE DATE OF 1981 AMENDMENTS
Amendment by Pub. L. 97-119 effective Jan. 1, 1982, see section 103(d)(1)
of Pub. L. 97-119, set out as an Effective Date note under section 9501 of this title.
EFFECTIVE DATE OF 1980 AMENDMENTS
Section 106(c)(1) of Pub. L. 96-605, as amended by Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “The amendments made by subsection (a) [amending this section]
shall apply to all taxable years to which the Internal Revenue Code of 1986 [formerly I.R.C. 1954] applies.”
Section 3(b) of Pub. L. 96-601 provided that: “The amendment made by subsection
(a) [amending this section] shall apply to taxable years beginning after October 20,
1976.”
Amendment by Pub. L. 96-364 applicable to taxable years ending after Sept. 26, 1980, see section 210(c) of Pub. L. 96-364, set out as an Effective Date note under section 418 of this title.
Amendment by Pub. L. 96-222 effective, except as otherwise provided, as if it had been included in the provisions
of the Revenue Act of 1978, Pub. L. 95-600, to which such amendment relates, see section 201 of Pub. L. 96-222, set out as an Effective Date of 1980 Amendment note under section 32 of this title.
EFFECTIVE DATE OF 1978 AMENDMENTS
Amendment by section 703(b)(2), (g)(2)(B) of Pub. L. 95-600 effective on Oct. 4, 1976, see section 703(r) of Pub. L. 95-600, set out as a note under section 46 of this title.
Section 703(g)(2)(C) of Pub. L. 95-600 provided that: “The amendments made by this paragraph [amending this section]
shall take effect on October 20, 1976, as if included in Public Law 94-568.”
Section 1(b) of Pub. L. 95-345 provided that: “The amendment made by subsection
(a) [amending this section] shall apply to taxable years beginning after December
31, 1974.”
Amendment by Pub. L. 95-227 applicable with respect to contributions, acts, and expenditures made after Dec.
31, 1977, in and for taxable years beginning after such date, see section 4(f) of Pub. L. 95-227, set out as a note under section 192 of this title.
EFFECTIVE DATE OF 1976 AMENDMENTS
Section 1(d) of Pub. L. 94-568 provided that: “The amendments made by this section [amending this section
and sections 277 and 512 of this title] shall apply to taxable years beginning after
the date of the enactment of this Act [Oct. 20, 1976].”
Section 2(b) of Pub. L. 94-568 provided that: “The amendment made by subsection
(a) [amending this section] shall apply to taxable years beginning after the date
of the enactment of this Act [Oct. 20, 1976].”
Section 1307(e) of Pub. L. 94-455 provided that: “The amendments made by this section [amending sections 170,
275, 501, 2055, 2106, 2522, 6104, 6161, 6201, 6211, 6212, 6213, 6214, 6344, 6501,
6512, 6601, and 7422 of this title and enacting sections 504 and 4911 of this title]
shall apply--
“(1) except as otherwise specified in paragraph (2), in the case of amendments
to subtitle A, to taxable years beginning after December 31, 1976;
“(2) in the case of the amendments made by subsection (a)(2) [enacting section
504 of this title], to activities occurring after the date of the enactment of this
Act [Oct. 4, 1976];
“(3) in the case of amendments to chapter 11, to the estates of decedents dying
after December 31, 1976;
“(4) in the case of amendments to chapter 12, to gifts in calendar years beginning
after December 31, 1976;
“(5) in the case of amendments to subtitle D, to taxable years beginning after
December 31, 1976;
and
“(6) in the case of amendments to subtitle F, on and after the date of the enactment
of this Act
[Oct. 4, 1976].”
Section 1312(b) of Pub. L. 94-455 provided that: “The amendment made by this section [amending this section]
shall apply to taxable years ending after December 31, 1976.”
Section 1313(d) of Pub. L. 94-455 provided that: “The amendments made by this section [amending sections 170,
501, 2055, and 2522 of this title]
shall apply on the day following the date of the enactment of this Act [Oct. 4, 1976].”
Section 2113(b) of Pub. L. 94-455 provided that: “The amendment made by this section [amending this section]
applies to taxable years ending after December 31, 1975.”
EFFECTIVE DATE OF 1975 AMENDMENTS
Amendment by Pub. L. 93-625 applicable to taxable years beginning after Dec. 31, 1974, see section 10(e) of Pub. L. 93-625, set out as an Effective Date note under section 527 of this title.
EFFECTIVE DATE OF 1974 AMENDMENTS
Section 3(b) of Pub. L. 93-310 provided that: “The amendments made by this section [amending this section]
shall apply to taxable years ending after December 31, 1973.”
EFFECTIVE DATE OF 1972 AMENDMENTS
Section 1(c) of Pub. L. 92-418 provided that: “The amendments made by this section [amending this section
and section 512 of this title]
shall apply to taxable years beginning after December 31, 1969.”
EFFECTIVE DATE OF 1970 AMENDMENTS
Section 2 of Pub L. 91-618 provided that: “The amendment made by the first section of this Act [amending
this section]
shall apply to taxable years ending after the date of enactment of this Act [Dec.
31, 1970].”
EFFECTIVE DATE OF 1969 AMENDMENTS
Amendment by section 101(j)(3) of Pub. L. 91-172 to take effect on Jan. 1, 1970, except for the amendment of subsec. (a) of this section
by section 101(j)(3) of Pub. L. 91-172, which shall apply to taxable years beginning after Dec. 31, 1969, see section 101(k)(1),
(2)(B) of Pub. L. 91-172, set out as an Effective Date note under section 4940 of this title.
Amendment by section 121(b)(5)(A), (6)(A) of Pub. L. 91-172 applicable to taxable years beginning after Dec. 31, 1969, see section 121(g) of Pub. L. 91-172, set out as a note under section 511 of this title.
EFFECTIVE DATE OF 1968 AMENDMENTS
Section 109(b) of Pub. L. 90-364 provided that: “The amendments made by subsection (a) [amending this section]
shall apply to taxable years ending after the date of the enactment of this Act [June
28, 1968].”
EFFECTIVE DATE OF 1966 AMENDMENTS
Section 6(c) of Pub. L. 89-800 provided that: “The amendment made by subsection
(a) [amending this section] shall apply to taxable years ending after the date of
the enactment of this Act [Nov. 8, 1966].”
Section 3 of Pub. 89-352 provided in part that:
“The amendment made by the first section of this Act [amending this section]
shall apply to taxable years ending after the date of the enactment of this Act [Feb.
2, 1966].”
EFFECTIVE DATE OF 1962 AMENDMENTS
Section 8(h) of Pub. L. 87-834 provided that: “The amendments made by this section [enacting sections 823
to 826 of this title, amending sections 501, 821, 822, 832, 841, 1016, and 1201 of
this title and redesignating former section 823 as section 822(f) of this title]
(other than by subsection (f) [amending section 831 of this title])
shall apply with respect to taxable years beginning after December 31, 1962.”
EFFECTIVE DATE OF 1960 AMENDMENTS
Section 6 of Pub. L. 86-667 provided that:
“(a) Except as provided in subsection (b), the amendments made by this Act [amending
sections 501, 503, 511, 513, and 514 of this title] shall apply to taxable years beginning
after December 31, 1959.
“(b) In the case of loans, the amendments made by section 2 of this Act [amending
section 503 of this title] shall apply only to loans made, renewed, or continued after
December 31, 1959.”
Section 2 of Pub. L. 86-428 provided that: “The amendment made by this Act [amending this section] shall
apply only with respect to taxable years beginning after December 31, 1959.”
EFFECTIVE DATE OF 1956 AMENDMENTS
Amendment by act Mar. 13, 1956, applicable only to taxable years beginning after Dec.
31, 1954, see section 6 of act Mar. 13, 1956, set out as a note under section 316
of this title.
PAYMENTS BY CHARITABLE ORGANIZATIONS WITH RESPECT TO CERTAIN FIREFIGHTERS TREATED
AS EXEMPT PAYMENTS
Section 2 of Pub. L. 113-63 provided that:
“(a) IN GENERAL.-For purposes of the Internal Revenue Code of 1986, payments made to—
“(1) any firefighter who was injured as a result of the ambush of firefighters
responding to an emergency on December 24, 2012, in Webster, New York,
“(2) the spouse of any firefighter who died as a result of such ambush, or
“(3) any dependent (as defined in section 152 of such Code) of any firefighter
who died as a result of such ambush,
by an organization described in paragraph (1) or
(2) of section 509(a) of such Code shall be treated as related to the purpose or function
constituting the basis for such organization's exemption under section 501 of such
Code if such payments are made in good faith using a reasonable and objective formula
which is consistently applied.
“(b) APPLICATION.-Subsection (a) shall apply only to payments made on or after
December 24, 2012, and before the later of—
“(1) January 1, 2014, or
“(2) the date which is 30 days after the date of the enactment of this Act [Enacted:
Dec. 20, 2013].”
PAYMENTS BY CHARITABLE ORGANIZATIONS WITH RESPECT TO CERTAIN FIREFIGHTERS TREATED
AS EXEMPT PAYMENTS
Section 2 of Pub. L. 109-445 provided that:
“(a)
In General.-For purposes of the Internal Revenue Code of 1986, payments made on behalf of any firefighter who died as the result of the
October 2006 Esperanza Incident fire in southern California to any family member of
such firefighter by an organization described in paragraph
(1) or (2) of section 509(a) of such Code shall be treated as related to the purpose
or function constituting the basis for such organization's exemption under section
501 of such Code if such payments are made in good faith using a reasonable and objective
formula which is consistently applied.
“(b)
Application.-Subsection (a) shall apply only to payments made on or after October
26, 2006, and before June 1, 2007.”
PAYMENTS BY CHARITABLE ORGANIZATIONS TREATED AS EXEMPT PAYMENTS
Sec. 104 of Pub. L. 107-134 provided that:
“(a) IN GENERAL.-For purposes of the Internal Revenue Code of 1986--
“(1) payments made by an organization described in section 501(c)(3) of such
Code by reason of the death, injury, wounding, or illness of an individual incurred
as the result of the terrorist attacks against the United States on September 11,
2001, or an attack involving anthrax occurring on or after September 11, 2001, and
before January 1, 2002, shall be treated as related to the purpose or function constituting
the basis for such organization's
exemption under section 501 of such Code if such payments are made in good faith
using a reasonable and objective formula which is consistently
applied, and
“(2) in the case of a private foundation (as defined in section 509 of such
Code), any payment described in paragraph
(1) shall not be treated as made to a disqualified person for purposes of section
4941 of such Code.
“(b) EFFECTIVE DATE.-This section shall apply to payments made on or after
September 11, 2001.”
PROVISION RELATED TO SECTION 1042 OF TAXPAYER RELIEF ACT OF 1997
Sec. 4003(g) of Pub. L. 105-277 provided that: “Rules similar to the rules of section 1.1502-75(d)(5) of the
Treasury Regulations shall apply with respect to any organization described in section
1042(b) of the 1997 Act.”
CONFIDENTIALITY OF TAX RETURN INFORMATION
Section 3802 of Pub. L. 105-206 provided that: “The Joint Committee on Taxation and the Secretary of the Treasury
shall each conduct a separate study of the scope and use of provisions regarding taxpayer
confidentiality, and shall report the findings of such study, together with such recommendations
as the Committee or the Secretary deems appropriate, to the Congress not later than
18 months after the date of the enactment of this Act. Such study shall examine--
(1) the present protections for taxpayer privacy,
(2) any need for third parties to use tax return information,
(3) whether greater levels of voluntary compliance may be achieved by allowing the
public to know who is legally required to file tax returns, but does not file tax
returns,
(4) the interrelationship of the taxpayer confidentiality provisions in the Internal Revenue Code of 1986 with such provisions in other Federal law, including section 552a of title
5, United States Code (commonly known as the ‘Freedom of Information Act’),
(5) the impact on taxpayer privacy of the sharing of income tax return information
for purposes of enforcement of State and local tax laws other than income tax laws,
and including the impact on the taxpayer privacy intended to be protected at the Federal,
State, and local levels under Public Law 105-35, the Taxpayer Browsing Protection Act of 1997, and
(6) whether the public interest would be served by greater disclosure of information
relating to tax exempt organizations described in section 501 of the Internal Revenue Code of 1986.”
TERMINATION OF CERTAIN EXCEPTIONS FROM RULES RELATING TO EXEMPT ORGANIZATIONS WHICH
PROVIDE COMMERCIAL-TYPE INSURANCE
Section 1042 of Pub. L. 105-34 provided that:
(a) In General.--Subparagraphs (A) and (B) of section 1012(c)(4) of the Tax Reform
Act of 1986 shall not apply to any taxable year beginning after December 31, 1997.
(b) Special Rules.--In the case of an organization to which section 501(m) of the
Internal Revenue Code of 1986 applies solely by reason of the amendment made by subsection (a)--
(1) no adjustment shall be made under section 481 (or any other provision) of such
Code on account of a change in its method of accounting for its first taxable year
beginning after December 31, 1997, and
(2) for purposes of determining gain or loss, the adjusted basis of any asset held
on the 1st day of such taxable year shall be treated as equal to its fair market value
as of such day.
(c) Reserve Weakening After June 8, 1997.--Any reserve weakening after June 8, 1997,
by an organization described in subsection (b) shall be treated as occurring in such
organization's 1st taxable year beginning after December 31, 1997.
(d) Regulations.--The Secretary of the Treasury or his delegate may prescribe rules
for providing proper adjustments for organizations described in subsection (b) with
respect to short taxable years which begin during 1998 by reason of section 843 of
the Internal Revenue Code of 1986.
APPLICATION OF PUB. L. 100-647 TO SECTION 501(c)(3) BONDS
Section 1013(i) of Pub. L. 100-647 provided that: “In accordance with section 1302 of the Reform Act [Pub. L. 99-514, set out as a note below], each amendment and other provision of this Act [see Tables
for classification] which applies to private activity bonds shall, unless otherwise
expressly provided, apply to qualified 501(c)(3) bonds.”
SPECIAL RULES FOR SECTION 501(m) ORGANIZATIONS
Sec. 1042(b) of Pub. L. 105-34 provided that: “(b) Special Rules.--In the case of an organization to which
section 501(m) of the Internal Revenue Code of 1986 applies solely by reason of the amendment made by subsection (a)--
(1) no adjustment shall be made under section 481
(or any other provision) of such Code on account of a change in its method of accounting
for its first taxable year beginning after December 31, 1997, and
(2) for purposes of determining gain or loss, the adjusted basis of any asset held
on the 1st day of such taxable year shall be treated as equal to its fair market value
as of such day.”
RESERVE WEAKENING AFTER JUNE 8, 1997
Sec. 1042(c) of Pub. L. 105-34 provided that: “Any reserve weakening after June 8, 1997, by an organization
described in subsection (b) [certain Section 501(m) organizations] shall be treated
as occurring in such organization's 1st taxable year beginning after December 31,
1997.”
REGULATIONS
Sec. 1042(d) of Pub. L. 105-34 provided that: “The Secretary of the Treasury or his delegate may prescribe
rules for providing proper adjustments for organizations described in subsection (b)
[certain Section 501(m)
organizations] with respect to short taxable years which begin during 1998 by reason
of section 843 of the Internal Revenue Code of 1986.”
CANCELLATION OF CERTAIN DEBTS ORIGINATED BY OR GUARANTEED BY UNITED STATES NOT TAKEN
INTO ACCOUNT IN DETERMINING TAX EXEMPT STATUS OF CERTAIN ORGANIZATIONS
Section 6203 of Pub. L. 100-647 provided that: “Subparagraph (A) of section 501(c)(12) of the 1986 Code shall
be applied without taking into account any income attributable to the cancellation
of any loan originally made or guaranteed by the United States (or any agency or instrumentality
thereof) if such cancellation occurs after 1986 and before 1990.”
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by sections 1109(a) and 1114(b)(14)
of Pub. L. 99-514 require an amendment to any plan, such plan amendment shall not be required to be
made before the first plan year beginning on or after Jan. 1, 1989, see section 1140
of Pub. L. 99-514, set out as a note under section 401 of this title.
ISSUANCE OF FINAL REGULATIONS
The Secretary of the Treasury or a delegate of the Secretary to issue before Feb.
1, 1988, final regulations to carry out amendments made by section 1114 of Pub. L. 99-514, see section 1141 of Pub. L. 99-514, set out as a note under section 401 of this title.
TREATMENT OF SECTION 501(c)(3) BONDS
Section 1302 of title XIII of Pub. L. 99-514 provided that: “Nothing in the treatment of section 501(c)(3) bonds as private
activity bonds under the amendments made by this title [enacting sections 141 to 150
and 7703 of this title, amending sections 2, 22, 25, 32, 86, 103, 105, 152, 153, 163,
172, 194, 269A, 414, 879, 1016, 1398, 3402, 4701, 4940, 4942, 4988, 6362, 6652, and
7871 of this title, repealing sections 103A, 1391 to 1397, and 6039B of this title,
enacting provisions set out as notes under sections 141 and 148 of this title, and
amending provisions set out as a note under section 103A of this title] shall be construed
as indicating how section 501(c)(3) bonds will be treated in future legislation, and
any change in future legislation applicable to private activity bonds shall apply
to section 501(c)(3) bonds only if expressly provided in such legislation.”
TAX-EXEMPT STATUS FOR ORGANIZATION INTRODUCING INTO PUBLIC USE TECHNOLOGY DEVELOPED
BY QUALIFIED ORGANIZATIONS
Section 1605 of Pub. L. 99-514 provided that:
“(a) In General.--For purposes of the Internal Revenue Code of 1986, an organization shall be treated as an organization organized and operated
exclusively for charitable purposes if such organization--
“(1) is organized and operated exclusively--
“(A) to provide for (directly or by arranging for and supervising the performance
by independent contractors)--
“(i) reviewing technology disclosures from qualified organizations,
“(ii) obtaining protection for such technology through patents, copyrights,
or other means, and
“(iii) licensing, sale, or other exploitation of such technology,
“(B) to distribute the income therefrom, to such qualified organizations after
paying expenses and other amounts as agreed with the originating qualified organizations,
and
“(C) to make research grants to such qualified organizations,
“(2) regularly provides the services and research grants described in paragraph
(1) exclusively to 1 or more qualified organizations, except that research grants
may be made to such qualified organizations through an organization which is controlled
by 1 or more organizations each of which--
“(A) is an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 or the income of which is excluded from taxation under section 115 of such
Code, and
“(B) may be a recipient of the services or research grants described in paragraph
(1),
“(3) derives at least 80 percent of its gross revenues from providing services
to qualified organizations located in the same State as the State in which such organization
has its principal office, and
“(4) was incorporated on July 20, 1981.
“(b) Qualified Organizations.--For purposes of this section, the term ‘qualified
organization’ has the same meaning given to such term by subparagraphs (A) and
(B) of section 41(e)(6)
(as redesignated by section 231(d)(2)) of the Internal Revenue Code of 1986.
“(c) Treatment of Investment in a Technology Transfer Service Organization.--
“(1) In general.--A qualified investment made by a private foundation in an
organization described in subparagraph (C) shall be treated as an investment described
in section 4944(c) of the Internal Revenue Code of 1986 and shall not result in imposition of taxes under section 4941, 4943, 4944,
4945, or 507(c) of such Code.
“(2) Definitions.--For purposes of this subsection--
“(A) Qualified investment.--The term ‘qualified investment’ means
a transfer by a private foundation of--
“(i) all of the patents, copyrights, know-how, and other technology or rights
thereto of the private foundation, and
“(ii) investment assets, net receivables, and cash not exceeding $35,000,000,
to such organization in exchange for debt.
“(B) Private foundation.--The term ‘private foundation’ means--
“(i) a nonprofit corporation which was incorporated before 1913 which is described
in sections 501(c)(3) and 509(a) of such Code, and which is exempt from taxation under
section 501(a) of such Code, and
“(ii) the principal purposes of which are to support research by and to provide
technology transfer services to organizations described in section 170(b)(1)(A) of
such Code-- “(I) which are exempt from taxation under section 501(a) of such
Code, or
“(II) the income of which is excluded from taxation under section 115 of such
Code.
“(C) Technology transfer organization.--The term ‘technology transfer
organization’ means a corporation established after the date of the enactment
of this Act [Oct. 22, 1986]--
“(i) which is organized and operated to advance the public welfare through the
provision of technology transfer services to research organizations,
“(ii) no part of the net earnings of which inures to the benefit of, or is distributable
to, any private shareholder, individual, or entity, other than a private foundation
or research organization,
“(iii) which does not participate in, or intervene in (including the publishing
or distributing of statements)
any political campaign on behalf of any candidate for public office,
“(iv) no substantial part of the activities of which is carrying on propaganda,
or otherwise attempting, to influence legislation, and
“(v) upon liquidation or dissolution of which all of its net assets can be distributed
only to research organizations.
“(d) Effective Date.--This section shall take effect on the date of the enactment
of this Act [Oct. 22, 1986].”
APPLICABILITY OF 1976 AMENDMENT TO CERTAIN ORGANIZATIONS
Section 1313(c) of Pub. L. 94-455, as amended byPub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “An organization which (without regard to the amendments made
by this section [amending sections 170(c)(2)(B), 501(c)(3), 2055(a)(2) and 2522(a)(2)
of this title]) is an organization described in section 170(c)(2)(B), 501(c)(3), 2055(a)(2),
or 2522(a)(2) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] shall not be treated as an organization not so described as a result of the amendments
made by this section.”
TAX EXEMPTION FOR CERTAIN PUERTO RICAN PENSION, ETC., PLANS
Section 1022(i) of Pub. L. 93-406, title II, Sept. 2, 1974, 88 Stat. 942, as amended by Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
“(1) General rule.--Effective for taxable years beginning after December 31,
1973, for purposes of section 501(a)
of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (relating to exemption from tax), any trust forming part of a pension, profit-sharing,
or stock bonus plan all of the participants of which are residents of the Commonwealth
of Puerto Rico shall be treated as an organization described in section 401(a) of
such Code if such trust--
“(A) forms part of a pension, profit-sharing, or stock bonus plan, and
“(B) is exempt from income tax under the laws of the Commonwealth of Puerto
Rico.
“(2) Election to have provisions of, and amendments made by, title ii of this
act apply.--
“(A) If the administrator of a pension, profit-sharing, or stock bonus plan
which is created or organized in Puerto Rico elects, at such time and in such manner
as the Secretary of the Treasury may require, to have the provisions of this paragraph
apply, for plan years beginning after the date of election any trust forming a part
of such plan shall be treated as a trust created or organized in the United States
for purposes of section 401(a) of the Internal Revenue Code of 1986.
“(B) An election under subparagraph
(A), once made, is irrevocable.
“(C) This paragraph applies to plan years beginning after the date of enactment
of this Act [Sept. 2, 1974]
“(D) The source of any distributions made under a plan which makes an election
under this paragraph to participants and beneficiaries residing outside of the United
States shall be determined, for purposes of subchapter N of chapter 1 of the Internal Revenue Code of 1986 by the Secretary of the Treasury in accordance with regulations prescribed
by him. For purposes of this subparagraph the United States means the United States
as defined in section 7701(a)(9) of the Internal Revenue Code of 1986.”
EXCHANGES FOR SALE OF POULTRY
Pub. L. 89-44, title VIII, 811, June 21, 1965, 79 Stat. 169, provided that certain corporations, associations, or organizations organized and
operated exclusively for the purpose of providing an exchange for the sale of poultry
growers of a particular locality shall be treated for purposes of this title as an
exempt organization and that such exemption shall apply to taxable years beginning
after Dec. 31, 1953, and ending after Aug. 16, 1954, which begin before Jan. 1, 1966.
