RURAL Act of 2019

I 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 tele- phone or electric companies. 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 Act of 2019’’ or as the 5 ‘‘RURAL Act of 2019’’. 6 VerDate Sep 11 2014 00:39 Apr 17, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2147.IH H2147 pamtmann on DSKBFK8HB2PROD with BILLS 2 •HR 2147 IH SEC. 2. MODIFICATION OF INCOME FOR PURPOSES OF DE- 1 TERMINING TAX-EXEMPT STATUS OF CER- 2 TAIN MUTUAL OR COOPERATIVE TELEPHONE 3 OR ELECTRIC COMPANIES. 4 (a) IN GENERAL.—Section 501(c)(12) of the Internal 5 Revenue Code of 1986 is amended by adding at the end 6 the following new subparagraph: 7 ‘‘(J) In the case of a mutual or cooperative 8 telephone or electric company described in this 9 paragraph, subparagraph (A) shall be applied 10 without taking into account any income received 11 or accrued from— 12 ‘‘(i) any grant, contribution, or assist- 13 ance provided pursuant to the Robert T. 14 Stafford Disaster Relief and Emergency 15 Assistance Act or any similar grant, con- 16 tribution, or assistance by any local, State, 17 or regional governmental entity for the 18 purpose of relief, recovery, or restoration 19 from, or preparation for, a disaster or 20 emergency, or 21 ‘‘(ii) any grant or contribution by any 22 governmental entity (other than a con- 23 tribution in aid of construction or any 24 other contribution as a customer or poten- 25 tial customer) the purpose of which is sub- 26 VerDate Sep 11 2014 00:39 Apr 17, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2147.IH H2147 pamtmann on DSKBFK8HB2PROD with BILLS 3 •HR 2147 IH stantially related to providing, construct- 1 ing, restoring, or relocating electric, com- 2 munication, broadband, internet, or other 3 utility facilities or services.’’. 4 (b) EFFECTIVE DATE.—The amendment made by 5 this section shall apply to taxable years beginning after 6 December 31, 2017. 7 Æ VerDate Sep 11 2014 00:39 Apr 17, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H2147.IH H2147 pamtmann on DSKBFK8HB2PROD with BILLS