Title: RURAL Act of 2019
Policy area: Taxation

Summary:
Revitalizing Underdeveloped Rural Areas and Lands Act of 2019 or the RURAL Act of 2019
This bill modifies the definition of income used to determine the tax-exempt status of a mutual or cooperative telephone or electric company to exclude certain government grants, contributions, and assistance.
Specifically, the bill excludes from income (1) grants, contributions, and assistance provided under the Robert T. Stafford Disaster Relief and Emergency Assistance Act or by local, state, or regional governmental entities for disasters or emergencies; and (2) certain grants or contributions provided by a government entity for electric, communications, broadband, internet, or other utility facilities or services.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2147 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 2147

To amend the Internal Revenue Code of 1986 to modify the definition of 
  income for purposes of determining the tax-exempt status of certain 
         mutual or cooperative telephone or electric companies.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 9, 2019

     Ms. Sewell of Alabama (for herself and Mr. Smith of Nebraska) 
 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 modify the definition of 
  income for purposes of determining the tax-exempt status of certain 
         mutual or cooperative telephone or electric companies.

    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 ``Revitalizing Underdeveloped Rural 
Areas and Lands Act of 2019'' or as the ``RURAL Act of 2019''.

SEC. 2. MODIFICATION OF INCOME FOR PURPOSES OF DETERMINING TAX-EXEMPT 
              STATUS OF CERTAIN MUTUAL OR COOPERATIVE TELEPHONE OR 
              ELECTRIC COMPANIES.

    (a) In General.--Section 501(c)(12) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new subparagraph:
                    ``(J) In the case of a mutual or cooperative 
                telephone or electric company described in this 
                paragraph, subparagraph (A) shall be applied without 
                taking into account any income received or accrued 
                from--
                            ``(i) any grant, contribution, or 
                        assistance provided pursuant to the Robert T. 
                        Stafford Disaster Relief and Emergency 
                        Assistance Act or any similar grant, 
                        contribution, or assistance by any local, 
                        State, or regional governmental entity for the 
                        purpose of relief, recovery, or restoration 
                        from, or preparation for, a disaster or 
                        emergency, or
                            ``(ii) any grant or contribution by any 
                        governmental entity (other than a contribution 
                        in aid of construction or any other 
                        contribution as a customer or potential 
                        customer) the purpose of which is substantially 
                        related to providing, constructing, restoring, 
                        or relocating electric, communication, 
                        broadband, internet, or other utility 
                        facilities or services.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2017.
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