II 116TH CONGRESS 1ST SESSION S. 1032 To amend the Internal Revenue Code of 1986 to modify the definition of income for purposes of determining the tax-exempt status of certain corporations. IN THE SENATE OF THE UNITED STATES APRIL 4, 2019 Mr. PORTMAN (for himself and Ms. SMITH) introduced the following bill; which was read twice and referred to the Committee on Finance 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 corporations. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Revitalizing Under- 4 developed Rural Areas and Lands (RURAL) Act’’. 5 VerDate Sep 11 2014 01:37 Apr 10, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1032.IS S1032 pbinns on DSK79D2C42PROD with BILLS 2 •S 1032 IS SEC. 2. MODIFICATION OF INCOME FOR PURPOSES OF DE- 1 TERMINING TAX-EXEMPT STATUS OF CER- 2 TAIN ORGANIZATIONS. 3 (a) IN GENERAL.—Section 501(c)(12) of the Internal 4 Revenue Code of 1986 is amended by adding at the end 5 the following new subparagraph: 6 ‘‘(J) In the case of a mutual or cooperative 7 telephone or electric company described in this 8 paragraph, subparagraph (A) shall be applied 9 without taking into account any income received 10 or accrued from— 11 ‘‘(i) any grant, contribution, or assist- 12 ance provided pursuant to the Robert T. 13 Stafford Disaster Relief and Emergency 14 Assistance Act or any similar grant, con- 15 tribution, or assistance by any local, State, 16 or regional governmental entity for the 17 purpose of relief, recovery, or restoration 18 from, or preparation for, a disaster or 19 emergency, or 20 ‘‘(ii) any grant or contribution by any 21 governmental entity (other than a con- 22 tribution in aid of construction or any 23 other contribution as a customer or poten- 24 tial customer) the purpose of which is sub- 25 stantially related to providing, construct- 26 VerDate Sep 11 2014 01:37 Apr 10, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1032.IS S1032 pbinns on DSK79D2C42PROD with BILLS 3 •S 1032 IS ing, restoring, or relocating electric, com- 1 munication, broadband, internet, or other 2 utility facilities or services.’’. 3 (b) EFFECTIVE DATE.—The amendment made by 4 this section shall apply to taxable years beginning after 5 December 31, 2017. 6 Æ VerDate Sep 11 2014 01:37 Apr 10, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S1032.IS S1032 pbinns on DSK79D2C42PROD with BILLS