No Foreign Election Interference Act

Bill: 118-hr-8314
Sponsor: full_name: Rep. Malliotakis, Nicole [R-NY-11]
Introduced: 2024-05-08
Policy area: Taxation
Subjects: Charitable contributions

Elections, voting, political campaign regulation

Tax administration and collection, taxpayers

Tax-exempt organizations
Latest action: action_date: 2024-09-17
text: On motion to suspend the rules and pass the bill, as amended Failed by the Yeas and Nays: (2/3 required): 218 - 181, 1 Present (Roll no. 418).

Summaries:
action_date: 2024-05-08
action_desc: Introduced in House
text: <p><strong>No Foreign Election Interference Act&nbsp;</strong></p><p>This bill imposes enhanced penalties on tax-exempt organizations that make contributions to political committees after receiving a gift or contribution from a foreign national. The penalty is 200% of the amount of such contributions. The organization loses its tax-exempt status if it makes more than two such contributions.&nbsp;</p><p>&nbsp;</p>

action_date: 2024-09-06
action_desc: Reported to House
text: <p><strong>No Foreign Election Interference Act&nbsp;</strong></p><p>This bill prohibits&nbsp;specified&nbsp;tax-exempt organizations from making contributions to political committees for eight years from the date of receiving a gift or contribution from a foreign national. <em>Specified tax-exempt organization</em> means, with respect to any taxable year, any organization described in Section 501(c) of the Internal Revenue Code (IRC) and exempt from tax under Section 501(a) of the IRC if (1) the gross receipts of such&nbsp;organization for such taxable year equal or exceed $200,000;&nbsp;or (2) the assets of such organization (determined as of the close of such taxable year) equal or exceed $500,000.</p><p>Any specified tax-exempt organization that makes such a contribution must pay a penalty that is 200% of the amount of such contribution.</p><p>The organization loses its tax-exempt status for any taxable year ending on or after the date of a third contribution.</p>

tv_txt: IB Union Calendar No. 546 118th CONGRESS 2d Session H. R. 8314 [Report No. 118–649] IN THE HOUSE OF REPRESENTATIVES May 8, 2024 Ms. Malliotakis introduced the following bill; which was referred to the Committee on Ways and Means September 6, 2024 Additional sponsor: Mr. Gallego September 6, 2024 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on May 8, 2024 A BILL To amend the Internal Revenue Code of 1986 to impose penalties with respect to contributions to political committees from certain tax exempt organizations that receive contributions from foreign nationals.

1. Short title This Act may be cited as the No Foreign Election Interference Act . 2. Penalties with respect to contributions to political committees from certain tax exempt organizations that accept contributions from foreign nationals (a) In general Part I of subchapter B of chapter 68 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 6720D. Contributions to political committees from certain tax exempt organizations that accept contributions from foreign nationals (a) In general Any specified tax exempt organization that makes any disqualified political committee contribution shall pay a penalty equal to twice the amount of such contribution. (b) Disqualified political committee contribution For purposes of this section— (1) In general The term disqualified political committee contribution means, with respect to any organization described in section 501(c), any contribution made by such organization to a political committee (as defined in section 301 of the Federal Election Campaign Act of 1971 ( 52 U.S.C. 30101 )) if such organization received, during any testing period, any contribution or gift (within the meaning of section 6033(b)(5)) from a foreign national (as defined in section 319(b) of the Federal Election Campaign Act of 1971 ( 52 U.S.C. 30121(b) )). (2) Testing period The term testing period means, with respect to any contribution by an organization described in section 501(c), the 8-year period ending on the date of such contribution, except that such period shall not include any period before the date of the enactment of this section. (c) Specified tax exempt organization For purposes of this section— (1) In general The term specified tax exempt organization means, with respect to any taxable year, any organization described in section 501(c) and exempt from tax under section 501(a) if— (A) the gross receipts of such organization for such taxable year equal or exceed $200,000, or (B) the assets of such organization (determined as of the close of such taxable year) equal or exceed $500,000. (2) Coordination with revocation of tax exempt status by reason of making disqualified political committee contributions An organization which is not exempt from tax under section 501(a) solely by reason of section 501(s) shall be treated for purposes of paragraph (1) of this subsection as exempt from tax under section 501(a) with respect to the application of this section to the first 3 disqualified political committee contributions of such organization. . (b) Revocation of exempt status upon third disqualified political committee contribution Section 501 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (s) Revocation of exempt status of certain organizations that accept contributions from foreign nationals and make contributions to political committees Any organization described in subsection (c) which makes more than 2 disqualified political committee contributions (as defined in section 6720D(b)) shall not be exempt from taxation under subsection (a) for any taxable year ending on or after the date of the third such contribution. . (c) Clerical amendment The table of sections for part I of subchapter B of chapter 68 of such Code is amended by adding at the end the following new item: Sec. 6720D. Contributions to political committees from certain tax exempt organizations that accept contributions from foreign nationals. . (d) Effective date The amendments made by this section shall apply with respect to contributions made on or after January 1, 2025, by organizations described in section 501(c) of the Internal Revenue Code of 1986.

September 6, 2024 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

tv_txt: I 118th CONGRESS 2d Session H. R. 8314 IN THE HOUSE OF REPRESENTATIVES May 8, 2024 Ms. Malliotakis 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 impose penalties with respect to contributions to political committees from certain tax exempt organizations that receive contributions from foreign nationals.

1. Short title This Act may be cited as the No Foreign Election Interference Act . 2. Penalties with respect to contributions to political committees from certain tax exempt organizations that accept contributions from foreign nationals (a) In general Part I of subchapter B of chapter 68 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 6720D. Contributions to political committees from certain tax exempt organizations that accept contributions from foreign nationals (a) In general Any specified tax exempt organization that makes any disqualified political committee contribution shall pay a penalty equal to twice the amount of such contribution. (b) Disqualified political committee contribution For purposes of this section— (1) In general The term disqualified political committee contribution means, with respect to any organization described in section 501(c), any contribution made by such organization to a political committee (as defined in section 301 of the Federal Election Campaign Act of 1971 ( 52 U.S.C. 30101 )) if such organization received, during any testing period, any contribution or gift (within the meaning of section 6033(b)(5)) from a foreign national (as defined in section 319(b) of the Federal Election Campaign Act of 1971 ( 52 U.S.C. 30121(b) )). (2) Testing period The term testing period means, with respect to any contribution by an organization described in section 501(c), the 8-year period ending on the date of such contribution, except that such period shall not include any period before the date of the enactment of this section. (c) Specified tax exempt organization For purposes of this section— (1) In general The term specified tax exempt organization means any organization described in section 501(c) and exempt from tax under section 501(a). (2) Coordination with revocation of tax exempt status by reason of making disqualified political committee contributions An organization which is not exempt from tax under section 501(a) solely by reason of section 501(s) shall be treated for purposes of paragraph (1) of this subsection as exempt from tax under section 501(a) with respect to the application of this section to the first 3 disqualified political committee contributions of such organization. . (b) Revocation of exempt status upon third disqualified political committee contribution Section 501 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (s) Revocation of exempt status of certain organizations that accept contributions from foreign nationals and make contributions to political committees Any organization described in subsection (c) which makes more than 2 disqualified political committee contributions (as defined in section 6720D(b)) shall not be exempt from taxation under subsection (a) for any taxable year ending on or after the date of the third such contribution. . (c) Effective date The amendments made by this subsection shall apply with respect to contributions made on or after January 1, 2025, by organizations described in section 501(c) of the Internal Revenue Code of 1986.