I 
111TH CONGRESS 
1ST SESSION H. R. 3602 
To allow certain newspapers to be treated as described in section 501(c)(3) 
of the Internal Revenue Code of 1986 and exempt from tax under 
section 501(a) of such Code. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 17, 2009 
Mrs. MALONEY introduced the following bill; which was referred to the 
Committee on Ways and Means 
A BILL 
To allow certain newspapers to be treated as described in 
section 501(c)(3) of the Internal Revenue Code of 1986 
and exempt 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. TREATMENT OF CERTAIN NEWSPAPERS AS EX-
EMPT FROM TAX UNDER SECTION 501. 
(a) IN GENERAL.—Paragraph (3) of section 501(c) 
of the Internal Revenue Code of 1986 is amended by in-
serting ‘‘(including a qualified newspaper corporation)’’ 
after ‘‘educational purposes’’. 
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(b) QUALIFIED NEWSPAPER CORPORATION.—Section 
501 of the Internal Revenue Code of 1986 is amended— 
(1) by redesignating subsection (r) as sub-
section (s), and 
(2) by inserting after subsection (q) the fol-
lowing new subsection: 
‘‘(r) QUALIFIED NEWSPAPER CORPORATION.—For 
purposes of this title, a corporation or organization shall 
be treated as a qualified newspaper corporation if— 
‘‘(1) the trade or business of such corporation 
or organization consists of publishing on a regular 
basis a newspaper for general circulation, 
‘‘(2) the newspaper published by such corpora-
tion or organization contains local, national, or 
international news stories of interest to the general 
public and the distribution of such newspaper is nec-
essary or valuable in achieving an educational pur-
pose, and 
‘‘(3) the preparation of the material contained 
in such newspaper follows methods generally accept-
ed as educational in character.’’. 
(c) UNRELATED BUSINESS INCOME OF A QUALIFIED 
NEWSPAPER CORPORATION.—Section 513 of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new subsection: 
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‘‘(k) ADVERTISING INCOME OF QUALIFIED NEWS-
PAPER CORPORATIONS.—The term ‘unrelated trade or 
business’ does not include the sale by a qualified news-
paper corporation (as defined in section 501(r)) of any 
space for commercial advertisement to be published in a 
newspaper, to the extent that the space allotted to all such 
advertisements in such newspaper does not exceed the 
space allotted to fulfilling the educational purpose of such 
qualified newspaper corporation.’’. 
(d) DEDUCTION
FOR
CHARITABLE
CONTRIBU-
TIONS.—Subparagraph (B) of section 170(c) of the Inter-
nal Revenue Code of 1986 is amended by inserting ‘‘(in-
cluding a qualified newspaper corporation as defined in 
section 501(r))’’ after ‘‘educational purposes’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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