I.R.C. § 501(a) Exemption From Taxation —
An organization described in subsection (c) or (d)
or section 401(a) shall
be exempt from taxation under this subtitle unless such exemption
is denied under section 502 or 503.
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)(12)(J) —
In the case of a mutual or cooperative
telephone or electric company described in this paragraph, subparagraph
(A) shall be applied without taking into account any income received
or accrued from—
I.R.C. § 501(c)(12)(J)(i) —
any grant, contribution, or assistance
provided pursuant to the Robert T. Stafford Disaster Relief and Emergency
Assistance Act or any similar grant, contribution, or assistance by
any local, State, or regional governmental entity for the purpose
of relief, recovery, or restoration from, or preparation for, a disaster
or emergency, or
I.R.C. § 501(c)(12)(J)(ii) —
any grant or contribution by any governmental
entity (other than a contribution in aid of construction or any other
contribution as a customer or potential customer) the purpose of which
is substantially related to providing, constructing, restoring, or
relocating electric, communication, broadband, internet, or other
utility facilities or services.
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.
For purposes of subparagraph (D)(ii), rules similar
to the rules of section 401(k)(8) shall
apply. For purposes of section 4979,
any excess contribution under clause (ii) shall be treated as an
excess contribution under a cash or deferred arrangement.
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)(4)(G) —
section 509(a)(3) (relating to organizations
supporting certain types of public charities) except that for purposes
of this subparagraph, section 509(a)(3) shall
be applied without regard to the last sentence of section 509(a).
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)(A) —
a portion of the amount paid in connection
with the issuance of the annuity is allowable as a deduction under
section 170 or 2055, and
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 —
No deduction shall be allowed under any provision of
this title, including sections 170, 545(b)(2), 642(c), 2055, 2106(a)(2), and 2522, with respect to any contribution
to an organization described in paragraph (2) during the period described
in paragraph (3).
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; Pub.
L. 116-94, Div. Q, title III, Sec. 301(a), Dec. 20, 2019.)
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
2019 - Subsec. (c)(12)(J). Pub. L. 116-94, Div. Q, Sec. 301(a), added
subpar. (J).
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 2019 AMENDMENTS
Amendment by Pub. L. 116-94,
Div. Q, Sec. 301(a), effective for taxable years beginning after December
31, 2017.
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.
REGULATIONS RELATING
TO EMPLOYER FAILURE TO MEET MULTIPLE EMPLOYER PLAN REQUIREMENTS.—
Sec. 106(e) of Pub. L. 117-328, Div. T, provided that:
“ (e) The Secretary
of the Treasury (or the Secretary's delegate) shall prescribe
such regulations as may be necessary to clarify, in the case of plans
to which section 403(b)(15) of the Internal Revenue Code of 1986 applies,
the treatment of an employer departing such plan in connection with
such employer's failure to meet multiple employer plan requirements.”
MODIFICATION OF MODEL
PLAN LANGUAGE, ETC.—
Sec. 106(f) of Pub. L. 117-328, Div. T, provided that:
“(1) PLAN NOTIFICATIONS.—The
Secretary of the Treasury (or the Secretary's delegate), in
consultation with the Secretary of Labor, shall modify the model plan
language published under section 413(e)(5) of the Internal Revenue
Code of 1986 to include language that requires participating employers
be notified that the plan is subject to the Employee Retirement Income
Security Act of 1974 and that such employer is a plan sponsor with
respect to its employees participating in the multiple employer plan
and, as such, has certain fiduciary duties with respect to the plan
and to its employees.
“(2) MODEL PLANS
FOR MULTIPLE EMPLOYER 403(b) PLANS.— For plans to which section
403(b)(15)(A) of the Internal Revenue Code of 1986 applies (other
than a plan maintained for its employees by a State, a political subdivision
of a State, or an agency or instrumentality of any one or more of
the foregoing), the Secretary of the Treasury (or the Secretary's
delegate), in consultation with the Secretary of Labor, shall publish
model plan language similar to model plan language published under
section 413(e)(5) of such Code.
“(3) EDUCATIONAL
OUTREACH TO EMPLOYERS EXEMPT FROM TAX.—The Secretary of the
Treasury (or the Secretary's delegate), in consultation with
the Secretary of Labor, shall provide education and outreach to increase
awareness to employers described in section 501(c)(3) of the Internal
Revenue Code of 1986, and which are exempt from tax under section
501(a) of such Code, that multiple employer plans are subject to the
Employee Retirement Income Security Act of 1974 and that such employer
is a plan sponsor with respect to its employees participating in the
multiple employer plan and, as such, has certain fiduciary duties
with respect to the plan and to its employees.”
NO INFERENCE WITH RESPECT
TO CHURCH PLANS.—
Sec. 106(g) of Pub. L. 117-328, Div. T, further added:
“(g) NO INFERENCE
WITH RESPECT TO CHURCH PLANS.—
Regarding any application
of section 403(b) of the Internal Revenue Code of 1986 to an annuity
contract purchased under a church plan (as defined in section 414(e)
of such Code) maintained by more than 1 employer, or to any application
of rules similar to section 413(e) of such Code to such a plan, no
inference shall be made from section 403(b)(15)(A) of such Code (as
added by this Act) not applying to such plans.”
ELIMINATING A PENALTY
ON PARTIAL ANNUITIZATION.
Sec. 204(a)-(b) of Pub. L. 117-328, Div. T, provided:
“ELIMINATING A
PENALTY ON PARTIAL ANNUITIZATION.—
“(a) Secretary
of the Treasury (or the Secretary's delegate) shall amend the
regulations under section 401(a)(9) of the Internal Revenue Code of
1986 to provide that if an employee's benefit is in the form
of an individual account under a defined contribution plan, the plan
may allow the employee to elect to have the amount required to be
distributed from such account under such section for a year to be
calculated as the excess of the total required amount for such year
over the annuity amount for such year.
DEFINITIONS.—
“For purposes of
this section—
“(1) TOTAL REQUIRED
AMOUNT.—The term ‘‘total required amount’’,
with respect to a year, means the amount which would be required to
be distributed under Treas. Reg. section 1.401(a)(9)–5 (or any
successor regulation) for the year, determined by treating the account
balance as of the last valuation date in the immediately preceding
calendar year as including the value on that date of all annuity contracts
which were purchased with a portion of the account and from which
payments are made in accordance with Treas. Reg. section 1.401(a)(9)–6.
“(2) ANNUITY AMOUNT.—The
term ‘‘annuity amount’’, with respect to a
year, is the total amount distributed in the year from all annuity
contracts described in paragraph (1).”
Sec. 204(c)-(d) of Pub. L. 117-328, Div. T, further provided:
“(c) CONFORMING
REGULATORY AMENDMENTS.—The Secretary of the Treasury (or the
Secretary's delegate) shall amend the regulations under sections
403(b)(10), 408(a)(6), 408(b)(3), and 457(d)(2) of the Internal Revenue
Code of 1986 to conform to the amendments described in subsection
(a). Such conforming amendments shall treat all individual retirement
plans (as defined in section 7701(a)(37) of such Code) which an individual
holds as the owner, or which an individual holds as a beneficiary
of the same decedent, as one such plan for purposes of the amendments
described in subsection (a). Such conforming amendments shall also
treat all contracts described in section 403(b) of such Code which
an individual holds as an employee, or which an individual holds as
a beneficiary of the same decedent, as one such contract for such
purposes.
“(d) EFFECTIVE
DATE.—The modifications and amendments required under subsections
(a) and (c) shall be deemed to have been made as of the date of the
enactment of this Act, and as of such date—
“(1) all applicable
laws shall be applied in all respects as though the actions which
the Secretary of the Treasury (or the Secretary's delegate)
is required to take under such subsections had been taken, and
“(2) until such
time as such actions are taken, taxpayers may rely upon their reasonable
good faith interpretations of this section.”
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.