I 

111TH CONGRESS 

1ST SESSION H. R. 3602 

To allow certain newspapers to be treated as described in section 501(c)(3) 

of the Internal Revenue Code of 1986 and exempt from tax under 

section 501(a) of such Code. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 17, 2009 

Mrs. MALONEY introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To allow certain newspapers to be treated as described in 

section 501(c)(3) of the Internal Revenue Code of 1986 

and exempt from tax under section 501(a) of such Code. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. TREATMENT OF CERTAIN NEWSPAPERS AS EX4 EMPT FROM TAX UNDER SECTION 501. 

5 (a) IN GENERAL.—Paragraph (3) of section 501(c) 

6 of the Internal Revenue Code of 1986 is amended by in7 serting ‘‘(including a qualified newspaper corporation)’’ 

8 after ‘‘educational purposes’’. 


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1 (b) QUALIFIED NEWSPAPER CORPORATION.—Section 

2 501 of the Internal Revenue Code of 1986 is amended— 

3 (1) by redesignating subsection (r) as sub4 section (s), and 

5 (2) by inserting after subsection (q) the fol6 lowing new subsection: 

7 ‘‘(r) QUALIFIED NEWSPAPER CORPORATION.—For 

8 purposes of this title, a corporation or organization shall 

9 be treated as a qualified newspaper corporation if— 

10 ‘‘(1) the trade or business of such corporation 

11 or organization consists of publishing on a regular 

12 basis a newspaper for general circulation, 

13 ‘‘(2) the newspaper published by such corpora14 tion or organization contains local, national, or 

15 international news stories of interest to the general 

16 public and the distribution of such newspaper is nec17 essary or valuable in achieving an educational pur18 pose, and 

19 ‘‘(3) the preparation of the material contained 

20 in such newspaper follows methods generally accept21 ed as educational in character.’’. 

22 (c) UNRELATED BUSINESS INCOME OF A QUALIFIED

23 NEWSPAPER CORPORATION.—Section 513 of the Internal 

24 Revenue Code of 1986 is amended by adding at the end 

25 the following new subsection: 


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•HR 3602 IH

1 ‘‘(k) ADVERTISING INCOME OF QUALIFIED NEWS2 PAPER CORPORATIONS.—The term ‘unrelated trade or 

3 business’ does not include the sale by a qualified news4 paper corporation (as defined in section 501(r)) of any 

5 space for commercial advertisement to be published in a 

6 newspaper, to the extent that the space allotted to all such 

7 advertisements in such newspaper does not exceed the 

8 space allotted to fulfilling the educational purpose of such 

9 qualified newspaper corporation.’’. 

10 (d) DEDUCTION FOR CHARITABLE CONTRIBU11 TIONS.—Subparagraph (B) of section 170(c) of the Inter12 nal Revenue Code of 1986 is amended by inserting ‘‘(in13 cluding a qualified newspaper corporation as defined in 

14 section 501(r))’’ after ‘‘educational purposes’’. 

15 (e) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to taxable years beginning after 

17 the date of the enactment of this Act. 

Æ 


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