Nonprofit Relief Act of 2019

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. Short title This Act may be cited as the Nonprofit Relief Act of 2019 2. Repeal of requirement that unrelated business taxable income be computed separately for each trade or business activity (a) In general Section 512(a) (b) Effective date The amendment made by this section shall take effect as if included in section 13702 of Public Law 115–97 3. Mileage reimbursements to charitable volunteers excluded from gross income (a) In general Part III of subchapter B of chapter 1 139H. Mileage reimbursements to charitable volunteers (a) In general Gross income of an individual does not include amounts received from an organization described in section 170(c) as reimbursement of operating expenses with respect to use of a passenger automobile for the benefit of such organization. The preceding sentence shall apply only to the extent that such reimbursement would be deductible under this chapter if section 274(d) were applied— (1) by using the standard business mileage rate established under such section, and (2) as if the individual were an employee of an organization not described in section 170(c). (b) Application to volunteer services only Subsection (a) shall not apply with respect to any expenses relating to the performance of services for compensation. (c) No double benefit Subsection (a) shall not apply with respect to any expenses if the individual claims a deduction or credit for such expenses under any other provision of this title. (d) Exemption from reporting requirements Section 6041 shall not apply with respect to reimbursements excluded from income under subsection (a). . (b) Clerical amendment The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139G the following new item: Sec. 139H. Mileage reimbursements to charitable volunteers. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2017. 4. Employer credit for paid family and medical leave made available to tax-exempt eligible employers (a) In general Section 45S (i) Credit made available to tax-Exempt eligible employers (1) In general In the case of a tax-exempt eligible employer, there shall be treated as a credit allowable under subpart C (and not allowable under this subpart) the lesser of— (A) the amount of the credit determined under this section with respect to such employer, or (B) the amount of the payroll taxes of the employer during the calendar year in which the taxable year begins. (2) Tax-exempt eligible employer For purposes of this subsection, the term tax-exempt eligible employer (3) Payroll taxes For purposes of this subsection— (A) In general The term payroll taxes (i) amounts required to be withheld from the employees of the tax-exempt eligible employer under section 3401(a), (ii) amounts required to be withheld from such employees under section 3101(b), and (iii) amounts of the taxes imposed on the tax-exempt eligible employer under section 3111(b). (B) Special rule A rule similar to the rule of section 24(d)(2)(C) shall apply for purposes of subparagraph (A). (C) Coordination with small employer health insurance credit The payroll taxes taken into account under this section with respect to any tax-exempt eligible employer for any taxable year shall be reduced by the amount of any credit allowable to such employer under section 45R(f). . (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2017. 5. Increase in corporate income tax rate (a) In general Section 11(b) 21 percent 21.06 percent (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2019.

Summary: Nonprofit Relief Act of 2019 This bill amends Internal Revenue Code provisions relating to tax-exempt or organizations to repeal the requirement that the unrelated business taxable income of tax-exempt organizations be computed separately for each trade or business activity, exclude from the gross income of charitable volunteers reimbursement of expenses for the use of a passenger vehicle for the benefit of a charitable organization, and allow the tax credit for employer-paid family and medical leave for nonprofit employers. The bill also increases the corporate income tax rate from 21% to 21.06% (as an offset to the cost of this bill).