I
104TH CONGRESS
2D SESSION
H. R. 2910
To amend the Internal Revenue Code of 1986 to clarify the restrictions
on the lobbying and campaign activities of churches.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 31, 1996
Mr. CRANE (for himself and Mr. RANGEL) 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 clarify
the restrictions on the lobbying and campaign activities
of churches.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. CLARIFICATION OF RESTRICTION ON LOBBY-
ING AND CAMPAIGN ACTIVITIES OF CHURCH-
ES.
(a) IN GENERAL.—Section 501 of the Internal Reve-
nue Code of 1986 (relating to exemption from tax on cor-
porations, certain trusts, etc.) is amended by redesignat-
ing subsection (n) as subsection (o) and by inserting after
subsection (m) the following new subsection:
‘‘(n) EXPENDITURES BY CHURCHES, ETC., TO IN-
FLUENCE LEGISLATION OR PARTICIPATE IN CAMPAIGN
ACTIVITIES.—
‘‘(1) EXPENDITURES TO INFLUENCE LEGISLA-
TION.—An organization to which this subsection ap-
plies shall be denied exemption from taxation under
subsection (a) because a substantial part of the ac-
tivities of such organization consists of carrying on
propaganda, or otherwise attempting, to influence
legislation, but only if such organization normally
makes lobbying expenditures (as defined in section
4911(d)) for each taxable year in excess of an
amount equal to 20 percent of such organization’s
gross revenues for such year.
‘‘(2) EXPENDITURES TO PARTICIPATE IN CAM-
PAIGNS.—An organization to which this subsection
applies shall be denied exemption from taxation
under subsection (a) because such organization par-
ticipates in, or intervenes in (including the publish-
ing or distributing of statements), any political cam-
paign on behalf of (or in opposition to) any can-
didate for public office, but only if such organization
normally makes expenditures for such purpose for
each taxable year in excess of an amount equal to
5 percent of such organization’s gross revenues for
such year.
‘‘(3) AGGREGATE
LIMIT.—An organization to
which this subsection applies shall be denied exemp-
tion from taxation under subsection (a) if the aggre-
gate of the expenditures described in paragraph (1)
and the expenditures described in paragraph (2)
which such organization normally makes for each
taxable year exceeds an amount equal to 20 percent
of such organization’s gross revenues for such year.
‘‘(4) GROSS REVENUES.—For purposes of this
subsection, the term ‘gross revenues’ means the sum
of—
‘‘(A) the organization’s gross income for
the taxable year, and
‘‘(B) the aggregate contributions and gifts
received by such organization during such year.
‘‘(5) ORGANIZATIONS
TO
WHICH
SUBSECTION
APPLIES.—This subsection shall apply to any dis-
qualified organization (as defined in subsection
(h)(5)) which is described in subsection (c)(3).
‘‘(6) AFFILIATED ORGANIZATIONS.—If, for any
taxable year, 2 or more organizations to which this
subsection applies are members of an affiliated
group of organizations (as defined in section
4911(f)(2))—
‘‘(A) paragraphs (1), (2), (3), and (4) shall
be applied by treating such group as 1 organi-
zation, and
‘‘(B) if such group exceeds the expenditure
limitation of paragraph (1), (2), or (3), each or-
ganization to which this subsection applies
which is a member of such group shall be treat-
ed as not described in subsection (c)(3).
The preceding sentence shall not be applied so as to
treat an organization which is not (without regard to
the preceding sentence) exempt from tax by reason
of paragraph (1), (2), or (3) as being so exempt.’’
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to taxable years beginning after
the date of the enactment of this Act.
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