Grave Injustice Parity Act
Bill: H.R.6226 | Sponsor: Rep. Kind, Ron (D-WI)
Policy area: Taxation

Summary:
Grave Injustice Parity Act
This bill allows a deduction for transfers to certain nonprofit cemeteries for purposes of determining the taxable amount of decedent estates or gifts. It also exempts from the tax on distributions of tax-exempt foundations transfers made to such cemeteries.

To amend the Internal Revenue Code of 1986 to allow for deductions for 
         transfers from estates or gifts to certain cemeteries.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Grave Injustice Parity Act''.

SEC. 2. DEDUCTIONS FOR TRANSFERS FROM ESTATES OR GIFTS TO CERTAIN 
              CEMETERIES.

    (a) Estates.--Section 2055(a) of the Internal Revenue Code of 1986 
is amended by striking ``or'' at the end of paragraph (4), by striking 
the period at the end of paragraph (5) and inserting ``; or'', and by 
inserting after paragraph (5) the following new paragraph:
            ``(6) to a cemetery company owned and operated exclusively 
        for the benefit of its members, or any corporation chartered 
        solely for burial purposes as a cemetery corporation and not 
        permitted by its charter to engage in any business not 
        necessarily incident to that purpose, if such company or 
        corporation is not operated for profit and no part of the net 
        earnings of such company or corporation inures to the benefit 
        of any private shareholder or individual.''.
    (b) Gifts.--
            (1) Residents.--Section 2522(a) of the Internal Revenue 
        Code of 1986 is amended by striking the period at the end of 
        paragraph (4) and inserting ``; or'', and by inserting after 
        paragraph (4) the following new paragraph:
            ``(5) a cemetery company owned and operated exclusively for 
        the benefit of its members, or any corporation chartered solely 
        for burial purposes as a cemetery corporation and not permitted 
        by its charter to engage in any business not necessarily 
        incident to that purpose, if such company or corporation is not 
        operated for profit and no part of the net earnings of such 
        company or corporation inures to the benefit of any private 
        shareholder or individual.''.
            (2) Nonresidents.--Section 2522(b) of the Internal Revenue 
        Code of 1986 is amended by striking the period at the end of 
        paragraph (5) and inserting ``; or'', and by inserting after 
        paragraph (5) the following new paragraph:
            ``(6) a cemetery company owned and operated exclusively for 
        the benefit of its members, or any corporation chartered solely 
        for burial purposes as a cemetery corporation and not permitted 
        by its charter to engage in any business not necessarily 
        incident to that purpose, if such company or corporation is not 
        operated for profit and no part of the net earnings of such 
        company or corporation inures to the benefit of any private 
        shareholder or individual.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to taxable years beginning after the date of 
enactment of this Act.

SEC. 3. DISTRIBUTIONS OF PRIVATE FOUNDATIONS TO CEMETERIES.

    (a) Taxes on Failure To Distribute Income.--Section 4942(g)(1)(A) 
of the Internal Revenue Code of 1986 is amended by inserting ``to a 
cemetery company described in section 170(c)(5) or'' after ``paid''.
    (b) Taxes on Taxable Expenditures.--Section 4945(d)(4)(A) is 
amended by striking ``or'' at the end of clause (ii) and by adding at 
the end the following new clause:
                            ``(iv) is a cemetery company described in 
                        section 170(c)(5), or''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to distributions made after the date of the 
enactment of this Act.
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