I 

116TH CONGRESS 

1ST SESSION H. R. 3323 

To amend the Internal Revenue Code of 1986 to repeal certain rules related 

to the determination of unrelated business taxable income, to provide 

that reimbursements for costs of using passenger automobiles for charitable organizations are excluded from gross income, to make the employer 

credit for paid family and medical leave available to tax-exempt eligible 

employers, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 18, 2019 

Mrs. CAROLYN B. MALONEY of New York (for herself and Mr. CLYBURN) introduced the following bill; which was referred to the Committee on Ways 

and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to repeal 

certain rules related to the determination of unrelated 

business taxable income, to provide that reimbursements 

for costs of using passenger automobiles for charitable 

organizations are excluded from gross income, to make 

the employer credit for paid family and medical leave 

available to tax-exempt eligible employers, and for other 

purposes. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Nonprofit Relief Act 

3 of 2019’’. 

4 SEC. 2. REPEAL OF REQUIREMENT THAT UNRELATED BUSI5 NESS TAXABLE INCOME BE COMPUTED SEPA6 RATELY FOR EACH TRADE OR BUSINESS AC7 TIVITY. 

8 (a) IN GENERAL.—Section 512(a) of the Internal 

9 Revenue Code of 1986 is amended by striking paragraph 

10 (6). 

11 (b) EFFECTIVE DATE.—The amendment made by 

12 this section shall take effect as if included in section 

13 13702 of Public Law 115–97. 

14 SEC. 3. MILEAGE REIMBURSEMENTS TO CHARITABLE VOL15 UNTEERS EXCLUDED FROM GROSS INCOME. 

16 (a) IN GENERAL.—Part III of subchapter B of chap17 ter 1 of the Internal Revenue Code of 1986 is amended 

18 by inserting after section 139G the following new section: 

19 ‘‘SEC. 139H. MILEAGE REIMBURSEMENTS TO CHARITABLE 

20 VOLUNTEERS. 

21 ‘‘(a) IN GENERAL.—Gross income of an individual 

22 does not include amounts received from an organization 

23 described in section 170(c) as reimbursement of operating 

24 expenses with respect to use of a passenger automobile 

25 for the benefit of such organization. The preceding sen26 tence shall apply only to the extent that such reimburseVerDate Sep 11 2014 22:37 Jun 20, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3323.IH H3323

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1 ment would be deductible under this chapter if section 

2 274(d) were applied— 

3 ‘‘(1) by using the standard business mileage 

4 rate established under such section, and 

5 ‘‘(2) as if the individual were an employee of an 

6 organization not described in section 170(c). 

7 ‘‘(b) APPLICATION TO VOLUNTEER SERVICES

8 ONLY.—Subsection (a) shall not apply with respect to any 

9 expenses relating to the performance of services for com10 pensation. 

11 ‘‘(c) NO DOUBLE BENEFIT.—Subsection (a) shall 

12 not apply with respect to any expenses if the individual 

13 claims a deduction or credit for such expenses under any 

14 other provision of this title. 

15 ‘‘(d) EXEMPTION FROM REPORTING REQUIRE16 MENTS.—Section 6041 shall not apply with respect to re17 imbursements excluded from income under subsection 

18 (a).’’. 

19 (b) CLERICAL AMENDMENT.—The table of sections 

20 for part III of subchapter B of chapter 1 of such Code 

21 is amended by inserting after the item relating to section 

22 139G the following new item: 

‘‘Sec. 139H. Mileage reimbursements to charitable volunteers.’’. 

23 (c) EFFECTIVE DATE.—The amendments made by 

24 this section shall apply to taxable years beginning after 

25 December 31, 2017. 


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1 SEC. 4. EMPLOYER CREDIT FOR PAID FAMILY AND MED2 ICAL LEAVE MADE AVAILABLE TO TAX-EX3 EMPT ELIGIBLE EMPLOYERS. 

4 (a) IN GENERAL.—Section 45S of the Internal Rev5 enue Code of 1986 is amended by redesignating subsection 

6 (i) as subsection (j) and by inserting after subsection (h) 

7 the following new subsection: 

8 ‘‘(i) CREDIT MADE AVAILABLE TO TAX-EXEMPT EL9 IGIBLE EMPLOYERS.— 

10 ‘‘(1) IN GENERAL.—In the case of a tax-exempt 

11 eligible employer, there shall be treated as a credit 

12 allowable under subpart C (and not allowable under 

13 this subpart) the lesser of— 

14 ‘‘(A) the amount of the credit determined 

15 under this section with respect to such em16 ployer, or 

17 ‘‘(B) the amount of the payroll taxes of the 

18 employer during the calendar year in which the 

19 taxable year begins. 

20 ‘‘(2) TAX-EXEMPT ELIGIBLE EMPLOYER.—For 

21 purposes of this subsection, the term ‘tax-exempt eli22 gible employer’ means an eligible employer which is 

23 any organization described in section 501(c) which is 

24 exempt from taxation under section 501(a). 

25 ‘‘(3) PAYROLL TAXES.—For purposes of this 

26 subsection— 


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1 ‘‘(A) IN GENERAL.—The term ‘payroll 

2 taxes’ means— 

3 ‘‘(i) amounts required to be withheld 

4 from the employees of the tax-exempt eligi5 ble employer under section 3401(a), 

6 ‘‘(ii) amounts required to be withheld 

7 from such employees under section 

8 3101(b), and 

9 ‘‘(iii) amounts of the taxes imposed on 

10 the tax-exempt eligible employer under sec11 tion 3111(b). 

12 ‘‘(B) SPECIAL RULE.—A rule similar to 

13 the rule of section 24(d)(2)(C) shall apply for 

14 purposes of subparagraph (A). 

15 ‘‘(C) COORDINATION WITH SMALL EM16 PLOYER HEALTH INSURANCE CREDIT.—The 

17 payroll taxes taken into account under this sec18 tion with respect to any tax-exempt eligible em19 ployer for any taxable year shall be reduced by 

20 the amount of any credit allowable to such em21 ployer under section 45R(f).’’. 

22 (b) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to taxable years beginning after 

24 December 31, 2017. 


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1 SEC. 5. INCREASE IN CORPORATE INCOME TAX RATE. 

2 (a) IN GENERAL.—Section 11(b) of the Internal Rev3 enue Code of 1986 is amended by striking ‘‘21 percent’’ 

4 and inserting ‘‘21.06 percent’’. 

5 (b) EFFECTIVE DATE.—The amendment made by 

6 this section shall apply to taxable years beginning after 

7 December 31, 2019. 

Æ 


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