Title: Nonprofit Relief Act of 2019
Policy area: Taxation

Summary:
Nonprofit Relief Act of 2019
This bill amends Internal Revenue Code provisions relating to tax-exempt or organizations to
The bill also increases the corporate income tax rate from 21% to 21.06% (as an offset to the cost of this bill).

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3323 Introduced in House (IH)]

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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 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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 18, 2019

   Mrs. Carolyn B. Maloney of New York (for herself and Mr. Clyburn) 
 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 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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Nonprofit Relief Act of 2019''.

SEC. 2. REPEAL OF REQUIREMENT THAT UNRELATED BUSINESS TAXABLE INCOME BE 
              COMPUTED SEPARATELY FOR EACH TRADE OR BUSINESS ACTIVITY.

    (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 VOLUNTEERS EXCLUDED FROM 
              GROSS INCOME.

    (a) In General.--Part III of subchapter B of chapter 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 sentence 
shall apply only to the extent that such reimbursement 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 compensation.
    ``(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 Requirements.--Section 6041 shall 
not apply with respect to reimbursements 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.

SEC. 4. EMPLOYER CREDIT FOR PAID FAMILY AND MEDICAL LEAVE MADE 
              AVAILABLE TO TAX-EXEMPT ELIGIBLE EMPLOYERS.

    (a) In General.--Section 45S of the Internal Revenue 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 Eligible 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 employer, 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 eligible 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--
                    ``(A) In general.--The term `payroll taxes' means--
                            ``(i) amounts required to be withheld from 
                        the employees of the tax-exempt eligible 
                        employer under section 3401(a),
                            ``(ii) amounts required to be withheld from 
                        such employees under section 3101(b), and
                            ``(iii) amounts of the taxes imposed on the 
                        tax-exempt eligible employer under section 
                        3111(b).
                    ``(B) Special rule.--A rule similar to the rule of 
                section 24(d)(2)(C) shall apply for purposes of 
                subparagraph (A).
                    ``(C) Coordination with small employer health 
                insurance credit.--The payroll taxes taken into account 
                under this section with respect to any tax-exempt 
                eligible employer for any taxable year shall be reduced 
                by the amount of any credit allowable to such employer 
                under section 45R(f).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2017.

SEC. 5. INCREASE IN CORPORATE INCOME TAX RATE.

    (a) In General.--Section 11(b) of the Internal Revenue Code of 1986 
is amended by striking ``21 percent'' and inserting ``21.06 percent''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2019.
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