grant shall not be treated as a collegiate housing and 
infrastructure grant for purposes of paragraph (1) to 
the extent that such grant is used to provide physical 
fitness equipment. 
‘‘(3) GRANTS TO CERTAIN ORGANIZATIONS HOLD-
ING TITLE TO PROPERTY, ETC.—For purposes of this 
subsection, a collegiate housing and infrastructure 
grant to an organization described in subsection 
(c)(2) or (c)(7) holding title to property exclusively 
for the benefit of an organization described in sub-
section (c)(7) shall be considered a grant to the orga-
nization described in subsection (c)(7) for whose ben-
efit such property is held.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to grants made after December 31, 2003. 
SEC. 110. CONDUCT OF CERTAIN GAMES OF CHANCE NOT 
TREATED AS UNRELATED TRADE OR BUSI-
NESS. 
(a) IN GENERAL.—Paragraph (1) of section 513(f) (re-
lating to certain bingo games) is amended to read as fol-
lows: 
‘‘(1) IN GENERAL.—The term ‘unrelated trade or 
business’ does not include—
‘‘(A) any trade or business which consists of 
conducting bingo games, and
‘‘(B) any trade or business which consists of 
conducting qualified games of chance if the net 
proceeds from such trade or business are paid or 
set aside for payment for purposes described in
section 170(c)(2)(B), for the promotion of social 
welfare 
(within 
the 
meaning 
of 
section 
501(c)(4)), or for a purpose for which State law 
specifically authorizes the expenditure of such 
proceeds.’’. 
(b) QUALIFIED GAMES OF CHANCE.—Subsection (f) of 
section 513 is amended by adding at the end the following 
new paragraph: 
‘‘(3) QUALIFIED GAMES OF CHANCE.—For pur-
poses of paragraph (1), the term ‘qualified game of 
chance’ means any game of chance (other than bingo) 
conducted by an organization if—
‘‘(A) such organization is licensed pursuant 
to State law to conduct such game, 
‘‘(B) only organizations which are orga-
nized as nonprofit corporations or are exempt 
from tax under section 501(a) may be so licensed 
to conduct such game within the State, and 
‘‘(C) the conduct of such game does not vio-
late State or local law.’’
(c) CLERICAL AMENDMENT.—The subsection heading 
of section 513(f) is amended by striking ‘‘BINGO GAMES’’ 
and inserting ‘‘GAMES OF CHANCE’’. 
(d) EFFECTIVE DATE.— The amendments made by 
this section shall apply to games conducted after December 
31, 2003.
SEC. 111. EXCISE TAXES EXEMPTION FOR BLOOD COL-
LECTOR ORGANIZATIONS. 
(a) EXEMPTION FROM IMPOSITION OF SPECIAL FUELS 
TAX.—Section 4041(g) (relating to other exemptions) is 
amended by striking ‘‘and’’ at the end of paragraph (3), 
by striking the period in paragraph (4) and inserting ‘‘; 
and’’, and by inserting after paragraph (4) the following 
new paragraph: 
‘‘(5) with respect to the sale of any liquid to a 
qualified blood collector organization (as defined in 
section 7701(a)(48)) for such organization’s exclusive 
use, or with respect to the use by a qualified blood col-
lector organization of any liquid as a fuel.’’. 
(b) EXEMPTION
FROM
MANUFACTURERS
EXCISE 
TAX.—
(1) IN GENERAL.—Section 4221(a) (relating to 
certain tax-free sales) is amended by striking ‘‘or’’ at 
the end of paragraph (4), by adding ‘‘or’’ at the end
of paragraph (5), and by inserting after paragraph 
(5) the following new paragraph: 
‘‘(6) to a qualified blood collector organization 
(as defined in section 7701(a)(48)) for such organiza-
tion’s exclusive use,’’. 
(2) CONFORMING AMENDMENTS.—
(A) The second sentence of section 4221(a) 
is amended by striking ‘‘Paragraphs (4) and 
(5)’’ and inserting ‘‘Paragraphs (4), (5), and 
(6)’’. 
(B) Section 6421(c) is amended by striking 
‘‘or (5)’’ and inserting ‘‘(5), or (6)’’. 
(c) EXEMPTION
FROM
COMMUNICATION
EXCISE 
TAX.—
(1) IN GENERAL.—Section 4253 (relating to ex-
emptions) is amended by redesignating subsection (k) 
as subsection (l) and inserting after subsection (j) the 
following new subsection: 
‘‘(k) EXEMPTION FOR QUALIFIED BLOOD COLLECTOR 
ORGANIZATIONS.—Under regulations provided by the Sec-
retary, no tax shall be imposed under section 4251 on any 
amount paid by a qualified blood collector organization (as 
defined in section 7701(a)(48)) for services or facilities fur-
nished to such organization.’’.
(2) CONFORMING AMENDMENT.—Section 4253(l), 
as redesignated by paragraph (1), is amended by 
striking ‘‘or (j)’’ and inserting ‘‘(j), or (k)’’. 
(d) CREDIT FOR REFUND FOR CERTAIN TAXES ON 
SALES AND SERVICES.—
(1) DEEMED OVERPAYMENT.—
(A) IN
GENERAL.—Section 6416(b)(2) is 
amended by redesignating subparagraphs (E) 
and (F) as subparagraphs (F) and (G), respec-
tively, and by inserting after subparagraph (D) 
the following new subparagraph: 
‘‘(E) sold to a qualified blood collector orga-
nization (as defined in section 7701(a)(48)) for 
such organization’s exclusive use;’’. 
(B) CONFORMING
AMENDMENTS.—Section 
6416(b)(2) is amended—
(i) by striking ‘‘Subparagraphs (C) 
and (D)’’ and inserting ‘‘Subparagraphs 
(C), (D), and (E)’’, and 
(ii) by striking ‘‘(C), and (D)’’ and in-
serting ‘‘(C), (D), and (E)’’. 
(2) SALES
OF
TIRES.—Clause (ii) of section 
6416(b)(4)(B) is amended by inserting ‘‘sold to a 
qualified blood collector organization (as defined in
section 7701(a)(48)) for its exclusive use,’’ after ‘‘for 
its exclusive use,’’. 
(e) DEFINITION OF QUALIFIED BLOOD COLLECTOR 
ORGANIZATION.—Section 7701(a) is amended by inserting 
at the end the following new paragraph: 
‘‘(48) QUALIFIED BLOOD COLLECTOR ORGANIZA-
TION.—The term ‘qualified blood collector organiza-
tion’ means an organization which is—
‘‘(A) described in section 501(c)(3) and ex-
empt from tax under section 501(a), 
‘‘(B) registered by the Food and Drug Ad-
ministration to collect blood, and 
‘‘(C) primarily engaged in the activity of 
the collection of blood.’’. 
(f) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on January 1, 2004.
SEC. 112. NONRECOGNITION OF GAIN ON THE SALE OF 
PROPERTY USED IN PERFORMANCE OF AN 
EXEMPT FUNCTION. 
(a) IN
GENERAL.—Subparagraph (D) of section 
512(a)(3) is amended to read as follows: 
‘‘(D) NONRECOGNITION OF GAIN.—
‘‘(i) IN
GENERAL.—If property used 
directly in the performance of the exempt 
function of an organization described in
paragraph (7), (9), (17), or (20) of section 
501(c) is sold by such organization, and
within a period beginning 1 year before the 
date of such sale, and ending 3 years (10 
years, in the case of an organization de-
scribed in section 501(c)(7)) after such date, 
other property is purchased and used by 
such organization directly in the perform-
ance of its exempt function, gain (if any) 
from such sale shall be recognized only to 
the extent that such organization’s sales 
price of the old property exceeds the organi-
zation’s cost of purchasing the other prop-
erty. 
‘‘(ii) STATUTE OF LIMITATIONS.—If an 
organization described in section 501(c)(7) 
sells property on which gain is not recog-
nized, in whole or in part, by reason of 
clause (i), then the statutory period for the 
assessment of any deficiency attributable to 
such gain shall not expire until the end of 
the 3-year period beginning on the date that 
the Secretary is notified by such organiza-
tion (in such manner as the Secretary may 
prescribe) that—
‘‘(I) the organization has met the 
requirements of clause (i) with respect 
to gain which was not recognized, 
‘‘(II) the organization does not in-
tend to meet such requirements, or 
‘‘(III) the organization failed to 
meet such requirements within the pre-
scribed period. 
For the purposes of this clause, any defi-
ciency may be assessed before the expiration 
of such 3-year period notwithstanding the 
provisions of any other law or rule of law 
which would otherwise prevent such assess-
ment. 
‘‘(iii) DESTRUCTION AND LOSS.—For 
purposes of this subparagraph, the destruc-
tion in whole or in part, theft, seizure, req-
uisition, or condemnation of property, shall 
be treated as the sale of such property, and 
rules similar to the rules provided by sub-
sections (b), (c), (e), and (j) of section 1034 
(as in effect on the day before the date of the 
enactment of the Taxpayer Relief Act of 
1997) shall apply.’’.
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply with respect to the sale of any property 
for which the 3-year period for offsetting gain by pur-
chasing other property under subparagraph (D) of section 
512(a)(3) of the Internal Revenue Code (as in effect on the 
day before the date of the enactment of this Act) had not 
expired as of January 1, 2001.
SEC. 113. EXEMPTION OF QUALIFIED 501(c)(3) BONDS FOR 
NURSING 
HOMES 
FROM 
FEDERAL 
GUAR-
ANTEE PROHIBITIONS. 
(a) IN GENERAL.—For purposes of section 149(b)(1) 
of the Internal Revenue Code of 1986, any qualified 
501(c)(3) bond (as defined in section 145 of such Code) shall 
not be treated as federally guaranteed solely because such 
bond is part of an issue supported by a letter of credit, 
if such bond—
(1) is issued after December 31, 2003, and before 
the date which is 1 year after the date of the enact-
ment of this Act, and 
(2) is part of an issue 95 percent or more of the 
net proceeds of which are to be used to finance 1 or 
more of the following facilities primarily for the ben-
efit of the elderly: 
(A) Licensed nursing home facility.
(B) Licensed or certified assisted living fa-
cility. 
(C) Licensed personal care facility. 
(D) Continuing care retirement community. 
(b) LIMITATION ON ISSUER.—Subsection (a) shall not 
apply to any bond described in such subsection if the aggre-
gate authorized face amount of the issue of which such bond 
is a part, when increased by the outstanding amount of 
such bonds issued by the issuer during the period described 
in subsection (a)(1) exceeds $15,000,000. 
(c) LIMITATION ON BENEFICIARY.—Rules similar to 
the rules of section 144(a)(10) of the Internal Revenue Code 
of 1986 shall apply for purposes of this section, except 
that—
(1) ‘‘$15,000,000’’ shall be substituted for 
‘‘$40,000,000’’ in subparagraph (A) thereof, and 
(2) such rules shall be applied—
(A) only with respect to bonds described in 
this section, and 
(B) with respect to the aggregate authorized 
face amount of all issues of such bonds which are 
allocable to the beneficiary. 
(d) CONTINUING CARE RETIREMENT COMMUNITY.—
For purposes of this section, the term ‘‘continuing care re-
tirement community’’ means a community which provides,
on the same campus, a consortium of residential living op-
tions and support services to persons at least 60 years of 
age under a written agreement. For purposes of the pre-
ceding sentence, the residential living options shall include 
independent living units, nursing home beds, and either as-
sisted living units or personal care beds. 
TITLE II—TAX REFORM AND IM-
PROVEMENTS RELATING TO 
CHARITABLE ORGANIZATIONS 
AND PROGRAMS 
SEC. 201. SUSPENSION OF TAX-EXEMPT STATUS OF TER-
RORIST ORGANIZATIONS. 
(a) IN GENERAL.—Section 501 (relating to exemption 
from tax on corporations, certain trusts, etc.) is amended 
by redesignating subsection (p) as subsection (q) and by in-
serting after subsection (o) the following new subsection: 
‘‘(p) SUSPENSION OF TAX-EXEMPT STATUS OF TER-
RORIST ORGANIZATIONS.—
‘‘(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 para-
graph (3).
‘‘(10) Landowner initiatives programs to con-
serve threatened, endangered, or imperiled species, or 
protect or restore habitat carried out under—
‘‘(A) the Fish and Wildlife Coordination 
Act (16 U.S.C. 661 et seq.), 
‘‘(B) the Fish and Wildlife Act of 1956 (16 
U.S.C. 742f), or 
‘‘(C) section 6 of the Endangered Species 
Act (16 U.S.C. 11531 et seq.).’’. 
(b) EXCLUDABLE PORTION.—Subparagraph (A) of sec-
tion 126(b)(1) is amended by inserting after ‘‘Secretary of 
Agriculture’’ the following: ‘‘(the Secretary of the Interior, 
in the case of the landowner incentives programs described 
in subsection (a)(10) and the programs described in sub-
section (a)(11) that are implemented by the Department of 
the Interior)’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to amounts received after December 31, 
2003, in taxable years ending after such date. 
SEC. 205. MODIFICATIONS TO SECTION 512(b)(13). 
(a) IN GENERAL.—Paragraph (13) of section 512(b) 
(relating to special rules for certain amounts received from 
controlled entities) is amended by redesignating subpara-
graph (E) as subparagraph (F) and by inserting after sub-
paragraph (D) the following new subparagraph: