Nonprofit Relief Act of 2019

I 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 chari- table 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) in- troduced 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 Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 22:37 Jun 20, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3323.IH H3323 kjohnson on DSK79L0C42 with BILLS 2 •HR 3323 IH SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Nonprofit Relief Act 2 of 2019’’. 3 SEC. 2. REPEAL OF REQUIREMENT THAT UNRELATED BUSI- 4 NESS TAXABLE INCOME BE COMPUTED SEPA- 5 RATELY FOR EACH TRADE OR BUSINESS AC- 6 TIVITY. 7 (a) IN GENERAL.—Section 512(a) of the Internal 8 Revenue Code of 1986 is amended by striking paragraph 9 (6). 10 (b) EFFECTIVE DATE.—The amendment made by 11 this section shall take effect as if included in section 12 13702 of Public Law 115–97. 13 SEC. 3. MILEAGE REIMBURSEMENTS TO CHARITABLE VOL- 14 UNTEERS EXCLUDED FROM GROSS INCOME. 15 (a) IN GENERAL.—Part III of subchapter B of chap- 16 ter 1 of the Internal Revenue Code of 1986 is amended 17 by inserting after section 139G the following new section: 18 ‘‘SEC. 139H. MILEAGE REIMBURSEMENTS TO CHARITABLE 19 VOLUNTEERS. 20 ‘‘(a) IN GENERAL.—Gross income of an individual 21 does not include amounts received from an organization 22 described in section 170(c) as reimbursement of operating 23 expenses with respect to use of a passenger automobile 24 for the benefit of such organization. The preceding sen- 25 tence shall apply only to the extent that such reimburse- 26 VerDate Sep 11 2014 22:37 Jun 20, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3323.IH H3323 kjohnson on DSK79L0C42 with BILLS 3 •HR 3323 IH ment would be deductible under this chapter if section 1 274(d) were applied— 2 ‘‘(1) by using the standard business mileage 3 rate established under such section, and 4 ‘‘(2) as if the individual were an employee of an 5 organization not described in section 170(c). 6 ‘‘(b) APPLICATION TO VOLUNTEER SERVICES 7 ONLY.—Subsection (a) shall not apply with respect to any 8 expenses relating to the performance of services for com- 9 pensation. 10 ‘‘(c) NO DOUBLE BENEFIT.—Subsection (a) shall 11 not apply with respect to any expenses if the individual 12 claims a deduction or credit for such expenses under any 13 other provision of this title. 14 ‘‘(d) EXEMPTION FROM REPORTING REQUIRE- 15 MENTS.—Section 6041 shall not apply with respect to re- 16 imbursements excluded from income under subsection 17 (a).’’. 18 (b) CLERICAL AMENDMENT.—The table of sections 19 for part III of subchapter B of chapter 1 of such Code 20 is amended by inserting after the item relating to section 21 139G the following new item: 22 ‘‘Sec. 139H. Mileage reimbursements to charitable volunteers.’’. (c) EFFECTIVE DATE.—The amendments made by 23 this section shall apply to taxable years beginning after 24 December 31, 2017. 25 VerDate Sep 11 2014 22:37 Jun 20, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3323.IH H3323 kjohnson on DSK79L0C42 with BILLS 4 •HR 3323 IH SEC. 4. EMPLOYER CREDIT FOR PAID FAMILY AND MED- 1 ICAL LEAVE MADE AVAILABLE TO TAX-EX- 2 EMPT ELIGIBLE EMPLOYERS. 3 (a) IN GENERAL.—Section 45S of the Internal Rev- 4 enue Code of 1986 is amended by redesignating subsection 5 (i) as subsection (j) and by inserting after subsection (h) 6 the following new subsection: 7 ‘‘(i) CREDIT MADE AVAILABLE TO TAX-EXEMPT EL- 8 IGIBLE EMPLOYERS.— 9 ‘‘(1) IN GENERAL.—In the case of a tax-exempt 10 eligible employer, there shall be treated as a credit 11 allowable under subpart C (and not allowable under 12 this subpart) the lesser of— 13 ‘‘(A) the amount of the credit determined 14 under this section with respect to such em- 15 ployer, or 16 ‘‘(B) the amount of the payroll taxes of the 17 employer during the calendar year in which the 18 taxable year begins. 19 ‘‘(2) TAX-EXEMPT ELIGIBLE EMPLOYER.—For 20 purposes of this subsection, the term ‘tax-exempt eli- 21 gible employer’ means an eligible employer which is 22 any organization described in section 501(c) which is 23 exempt from taxation under section 501(a). 24 ‘‘(3) PAYROLL TAXES.—For purposes of this 25 subsection— 26 VerDate Sep 11 2014 00:24 Jun 25, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3323.IH H3323 kjohnson on DSK79L0C42 with BILLS 5 •HR 3323 IH ‘‘(A) IN GENERAL.—The term ‘payroll 1 taxes’ means— 2 ‘‘(i) amounts required to be withheld 3 from the employees of the tax-exempt eligi- 4 ble employer under section 3401(a), 5 ‘‘(ii) amounts required to be withheld 6 from such employees under section 7 3101(b), and 8 ‘‘(iii) amounts of the taxes imposed on 9 the tax-exempt eligible employer under sec- 10 tion 3111(b). 11 ‘‘(B) SPECIAL RULE.—A rule similar to 12 the rule of section 24(d)(2)(C) shall apply for 13 purposes of subparagraph (A). 14 ‘‘(C) COORDINATION WITH SMALL EM- 15 PLOYER HEALTH INSURANCE CREDIT.—The 16 payroll taxes taken into account under this sec- 17 tion with respect to any tax-exempt eligible em- 18 ployer for any taxable year shall be reduced by 19 the amount of any credit allowable to such em- 20 ployer under section 45R(f).’’. 21 (b) EFFECTIVE DATE.—The amendments made by 22 this section shall apply to taxable years beginning after 23 December 31, 2017. 24 VerDate Sep 11 2014 22:37 Jun 20, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3323.IH H3323 kjohnson on DSK79L0C42 with BILLS 6 •HR 3323 IH SEC. 5. INCREASE IN CORPORATE INCOME TAX RATE. 1 (a) IN GENERAL.—Section 11(b) of the Internal Rev- 2 enue Code of 1986 is amended by striking ‘‘21 percent’’ 3 and inserting ‘‘21.06 percent’’. 4 (b) EFFECTIVE DATE.—The amendment made by 5 this section shall apply to taxable years beginning after 6 December 31, 2019. 7 Æ VerDate Sep 11 2014 22:37 Jun 20, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\H3323.IH H3323 kjohnson on DSK79L0C42 with BILLS