who are candidates for nomination or election
to any Federal elective public office, for use by
such committee, association, or organization to
further the candidacy of such individual or indi-
viduals for nomination or election to such office,
or
‘‘(C) the national committee of a national
political party, the State committee of a na-
tional political party as designated by the na-
tional committee of such party, or a local com-
mittee of a national political party as des-
ignated by the State committee of such party
designated under this subparagraph, for use by
such committee to further the candidacy of
such individual or individuals for nomination or
election to such office.
‘‘(d) CROSS REFERENCES.—
‘‘For transfer of appreciated property to a politi-
cal organization, see section 84.
‘‘For certain indirect contributions to political
parties, see section 276.’’
(b) CLERICAL AMENDMENT.—The table of sections
for subpart A of part IV of subchapter A of chapter 1
of such Code is amended by inserting after the item relat-
ing to section 22 the following new item:
‘‘Sec. 23. Contributions to Federal campaigns.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to contributions paid or incurred
after the date of the enactment of this Act, in taxable
years ending after such date.
SEC. 5. IMPOSITION OF SECTION 501(h) LOBBYING RE-
STRICTIONS ON TAX-EXEMPT LABOR, AGRI-
CULTURAL, AND HORTICULTURAL ORGANI-
ZATIONS.
(a) IN GENERAL.—Paragraph (5) of section 501(c)
of the Internal Revenue Code of 1986 (relating to exemp-
tion from tax on corporations, certain trusts, etc.) is
amended to read as follows:
‘‘(5) Labor, agricultural, or horticultural orga-
nizations with respect to which exemption from tax-
ation under subsection (a) is not required to be de-
nied under subsection (h) and which do not partici-
pate in, or intervene in (including the publishing or
distributing of statements), any political campaign
on behalf of (or in opposition to) any candidate for
public office.’’
(b) CONFORMING AMENDMENTS.—
(1) DENIAL OF TAX EXEMPTION BY REASON OF
EXPENDITURES
TO
INFLUENCE
LEGISLATION.—
Paragraph (3) of section 501(h) of such Code is
amended to read as follows:
‘‘(3) ORGANIZATIONS
TO
WHICH
THIS
SUB-
SECTION APPLIES.—This subsection shall apply to—
‘‘(A) any labor, agricultural, or horti-
cultural organization, and
‘‘(B) any other organization which has
elected (in such manner and at such time as the
Secretary may prescribe) to have the provisions
of this subsection apply to such organization
and which, for the taxable year which includes
the date the election is made, is described in
subsection (c)(3) and—
‘‘(i) is described in paragraph (4), and
‘‘(ii) is not a disqualified organization
under paragraph (5).’’
(2) PROHIBITION ON TREATMENT AS 501(c)(4)
ORGANIZATION
AFTER
CEASING
TO
QUALIFY
FOR
501(c)(5)
EXEMPTION
BECAUSE
OF
SUBSTANTIAL
LOBBYING
OR
POLITICAL
ACTIVITIES.—Subsection
(a) of section 504 of such Code is amended by in-
serting ‘‘or section 501(c)(5)’’ after ‘‘section
501(c)(3)’’ each place it appears.
(3) TAX ON EXCESS EXPENDITURES TO INFLU-
ENCE LEGISLATION.—
(A) APPLICABILITY TO SECTION 501(c)(5)
ORGANIZATIONS.—Section 4911 of such Code is
amended by adding at the end the following
new subsection:
‘‘(g) APPLICABILITY TO SECTION 501(c)(5) ORGANI-
ZATIONS.—For purposes of this section—
‘‘(1) IN GENERAL.—Any organization which is
a 501(c)(5) organization for a taxable year shall be
treated as if an election under section 501(h) were
in effect for such organization for such taxable year.
‘‘(2) SECTION
501(c)(5)
ORGANIZATION.—The
term ‘501(c)(5) organization’ has the meaning given
such term by section 4955(f).’’
(B) EXEMPT PURPOSE EXPENDITURES.—
Subparagraph (A) of section 4911(e)(1) of such
Code is amended by striking the period and in-
serting the following: ‘‘and includes, in the case
of a 501(c)(5) organization, purposes described
in section 501(c)(5) with respect to such orga-
nization.’’
(C) AFFILIATED
ORGANIZATIONS.—Para-
graph (1) of section 4911(f) of such Code is
amended by inserting ‘‘or section 501(c)(5)’’
after ‘‘section 501(c)(3)’’ each place it appears.
(4) TAX ON POLITICAL EXPENDITURES.—
(A) IN GENERAL.—