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 chari-
table 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) in-
troduced 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Nonprofit Relief Act 
of 2019’’. 
SEC. 2. REPEAL OF REQUIREMENT THAT UNRELATED BUSI-
NESS TAXABLE INCOME BE COMPUTED SEPA-
RATELY FOR EACH TRADE OR BUSINESS AC-
TIVITY. 
(a) IN GENERAL.—Section 512(a) of the Internal 
Revenue Code of 1986 is amended by striking paragraph 
(6). 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect as if included in section 
13702 of Public Law 115–97. 
SEC. 3. MILEAGE REIMBURSEMENTS TO CHARITABLE VOL-
UNTEERS EXCLUDED FROM GROSS INCOME. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by inserting after section 139G the following new section: 
‘‘SEC. 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 sen-
tence shall apply only to the extent that such reimburse-
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ment 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 com-
pensation. 
‘‘(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
REQUIRE-
MENTS.—Section 6041 shall not apply with respect to re-
imbursements 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. 
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SEC. 4. EMPLOYER CREDIT FOR PAID FAMILY AND MED-
ICAL LEAVE MADE AVAILABLE TO TAX-EX-
EMPT ELIGIBLE EMPLOYERS. 
(a) IN GENERAL.—Section 45S of the Internal Rev-
enue Code of 1986 is amended by redesignating subsection 
(i) as subsection (j) and by inserting after subsection (h) 
the following new subsection: 
‘‘(i) CREDIT MADE AVAILABLE TO TAX-EXEMPT EL-
IGIBLE 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 em-
ployer, 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 eli-
gible employer’ means an eligible employer which is 
any organization described in section 501(c) which is 
exempt from taxation under section 501(a). 
‘‘(3) PAYROLL TAXES.—For purposes of this 
subsection— 
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