I
107TH CONGRESS
1ST SESSION
H. R. 3583
To amend the Internal Revenue Code of 1986 to provide that no organization
providing support to terrorists or terrorist organizations shall be qualified
for exemption from tax under section 501(a) of such Code.
IN THE HOUSE OF REPRESENTATIVES
DECEMBER 20, 2001
Mr. ISRAEL 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 provide
that no organization providing support to terrorists or
terrorist organizations shall be qualified for exemption
from tax under section 501(a) of such Code.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Anti-Terrorism Char-
ity Protection Act’’.
SEC. 2. FINDINGS.
Congress finds the following:
(1) There are 1,230,000 charities, social welfare
organizations, and religious congregations in the
United States.
(2) Eighty-nine percent of Americans gave
money to charities in the United States during
2000.
(3) The average contributing household gave
$1,620 to charities in 2000.
(4) Under the Internal Revenue Code of 1986,
taxpayers may deduct their charitable contributions
from their taxable income.
(5) The Federal tax exemption for charitable
contributions is an important incentive for people to
give to charities.
(6) Because of the tax benefits charities enjoy,
the Internal Revenue Code of 1986 provides that
only certain classes of organizations are eligible for
any tax benefits.
(7) The Internal Revenue Service carefully
scrutinizes those organizations that apply for tax-ex-
empt status and confers such status only upon those
organizations it deems to be in compliance with laws
and regulations.
(8) For many Americans, tax-exempt status
confers a nonlegal preferred status on organizations
that qualify for it.
(9) It is in the national security interest to keep
funding from terrorists and terrorist organizations.
(10) Tax-exempt status should not be available
to any organization that supports terrorists or ter-
rorist organizations.
SEC. 3. PURPOSES.
The purposes of this Act are—
(1) to ensure that no organization that supports
terrorists or terrorism has access to tax-exempt sta-
tus as provided for in the Internal Revenue Code of
1986; and
(2) to codify current Internal Revenue Service
practices that deny tax-exempt status to organiza-
tions that support terrorists or terrorism.
SEC. 4. DENIAL OF TAX EXEMPTION FOR ORGANIZATIONS
PROVIDING SUPPORT TO TERRORISTS OR
TERRORIST ORGANIZATIONS.
(a) IN GENERAL.—Section 501 of the Internal Rev-
enue Code of 1986 (relating to exemption from tax on cor-
porations, certain trusts, etc.) is amended by redesig-
nating subsection (p) as subsection (q) and by inserting
after subsection (o) the following new subsection:
‘‘(p) DENIAL OF TAX EXEMPTION TO ORGANIZA-
TIONS PROVIDING SUPPORT FOR TERRORISTS.—
‘‘(1) IN GENERAL.—In the case of any organi-
zation described in subsection (c), exemption from
taxation under subsection (a) shall be denied if any
funds of such organization are used to support, or
any activities of the organization consist of providing
support to, terrorists or terrorist organizations.
‘‘(2) TERRORIST
OR
TERRORIST
ORGANIZA-
TION.—For purposes of this subsection, the term
‘terrorist or terrorist organization’ means any indi-
vidual or organization that carries out any terroristic
activity (as defined by section 692(c)(2)(A)).’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall take effect on the date of the enactment
of this Act.
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