26 USC 501 - Exemption from tax on corporations, certain trusts, etc.

Editorial Notes

References in Text

Sections 306A and 306B of the Rural Electrification Act of 1936, referred to in subsec. (c)(12)(B)(iv), are classified to sections 936a and 936span, respectively, of Title 7, Agriculture. Section 311 of the Act was classified to section 940a of Title 7 prior to repeal by Puspan. L. 104–127, title VII, § 780, Apr. 4, 1996, 110 Stat. 1151.

The date of the enactment of this subparagraph, referred to in subsec. (c)(12)(H)(vii), is the date of enactment of Puspan. L. 108–357, which was approved Oct. 22, 2004.

The Robert T. Stafford Disaster Relief and Emergency Assistance Act, referred to in subsec. (c)(12)(J)(i), is Puspan. L. 93–288, May 22, 1974, 88 Stat. 143, which is classified principally to chapter 68 (§ 5121 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 5121 of Title 42 and Tables.

Section 831(span)(2)(B)(ii), referred to in subsec. (c)(15)(C), was redesignated section 831(span)(2)(C)(ii) by Puspan. L. 114–113, div. Q, title III, § 333(a)(1)(B), Dec. 18, 2015, 129 Stat. 3106.

The Federal Mine Safety and Health Act of 1977, referred to in subsec. (c)(21)(D)(i), is Puspan. L. 91–173, Dec. 30, 1969, 83 Stat. 742, as amended by Puspan. L. 95–164, Nov. 9, 1977, 91 Stat. 1290. Part C of title IV of the Act is classified generally to part C (§ 931 et seq.) of subchapter IV of chapter 22 of Title 30, Mineral Lands and Mining. For complete classification of this Act to the Code, see Short Title note set out under section 801 of Title 30 and Tables.

Section 4223 of the Employee Retirement Income Security Act of 1974, referred to in subsec. (c)(22)(A)(i), (C), (D), is classified to section 1403 of Title 29, Labor.

Section 4049 of the Employee Retirement Income Security Act of 1974, referred to in subsec. (c)(24), was classified to section 1349 of Title 29, prior to its repeal by Puspan. L. 100–203, title IX, § 9312(a), Dec. 22, 1987, 101 Stat. 1330–361.

The date of the enactment of the Single-Employer Pension Plan Amendments Act of 1986, referred to in subsec. (c)(24), is the date of enactment of title XI of Puspan. L. 99–272, which was approved Apr. 7, 1986.

The date of enactment of this subparagraph, referred to in subsec. (c)(27)(B)(iii)(I), is the date of enactment of Puspan. L. 105–34, which was approved Aug. 5, 1997.

Section 15(j) of the Railroad Retirement Act of 1974, referred to in subsec. (c)(28), is classified to section 231n(j) of Title 45, Railroads.

Section 1322 of the Patient Protection and Affordable Care Act, referred to in subsec. (c)(29)(A), (B)(ii), is classified to section 18042 of Title 42, The Public Health and Welfare.

The Federal Credit Union Act, referred to in subsec. (l)(1), is act June 26, 1934, ch. 750, 48 Stat. 1216, as amended. Title III of the Federal Credit Union Act is classified generally to subchapter III (§ 1795 et seq.) of chapter 14 of Title 12, Banks and Banking. For complete classification of this Act to the Code, see section 1751 of Title 12 and Tables.

Sections 21A and 21B of the Federal Home Loan Bank Act, referred to in subsec. (l)(2), (3), are classified to former section 1441a and section 1441span, respectively, of Title 12, Banks and Banking. Section 21A of the Act was repealed by Puspan. L. 111–203, title III, § 364(span), July 21, 2010, 124 Stat. 1555.

Sections 1181(span) and 1855(d) of the Social Security Act, referred to in subsecs. (l)(4) and (o), are classified to sections 1320e(span) and 1395w–25(d), respectively, of Title 42, The Public Health and Welfare.

Sections 212(a)(3)(B) and 219 of the Immigration and Nationality Act, referred to in subsec. (p)(2)(A), (C)(i), are classified to sections 1182(a)(3)(B) and 1189, respectively, of Title 8, Aliens and Nationality.

The International Emergency Economic Powers Act, referred to in subsec. (p)(2)(B), is title II of Puspan. L. 95–223, Dec. 28, 1977, 91 Stat. 1626, which is classified generally to chapter 35 (§ 1701 et seq.) of Title 50, War and National Defense. For complete classification of this Act to the Code, see Short Title note set out under section 1701 of Title 50 and Tables.

Section 5 of the United Nations Participation Act of 1945, referred to in subsec. (p)(2)(B), is classified to section 287c of Title 22, Foreign Relations and Intercourse.

Section 140(d)(2) of the Foreign Relations Authorization Act, Fiscal Years 1988 and 1989, referred to in subsec. (p)(2)(C)(i), is classified to section 2656f(d)(2) of Title 22, Foreign Relations and Intercourse.

The date of the enactment of this subsection, referred to in subsec. (p)(3)(A)(ii), is the date of enactment of Puspan. L. 108–121, which was approved Nov. 11, 2003.

The date of the enactment of this subsection, referred to in subsec. (q)(2)(B)(ii), is the date of enactment of Puspan. L. 109–280, which was approved Aug. 17, 2006.

Amendments

2019—Subsec. (c)(12)(J). Puspan. L. 116–94 added subpar. (J).

2018—Subsec. (c)(12)(E). Puspan. L. 115–141, § 109(span), substituted “means—” for “means the Federal Energy Regulatory Commission and references to such term shall be treated as including the Public Utility Commission of Texas with respect to any ERCOT utility (as defined in section 212(k)(2)(B) of the Federal Power Act (16 U.S.C. 824k(k)(2)(B))).” and added cls. (i) and (ii).

Subsec. (c)(12)(I). Puspan. L. 115–123 added subpar. (I).

Subsec. (c)(14)(B)(iv). Puspan. L. 115–141, § 401(a)(122), inserted period at end.

Subsec. (c)(19)(B). Puspan. L. 115–141, § 401(a)(123), substituted “widows,” for “widows,,”.

Subsec. (f)(3)(B). Puspan. L. 115–141, § 401(a)(124), substituted “section 115” for “section 115(a)”.

Subsec. (p)(4). Puspan. L. 115–141, § 401(span)(22), struck out “, 556(span)(2)” after “545(span)(2)”.

2015—Subsec. (h)(4)(E) to (G). Puspan. L. 114–113 added subpar. (E) and redesignated former subpars. (E) and (F) as (F) and (G), respectively.

2014—Subsec. (c)(20). Puspan. L. 113–295, § 221(a)(19)(B)(iii), struck out par. (20) which read as follows: “an organization or trust created or organized in the United States, the exclusive function of which is to form part of a qualified group legal services plan or plans, within the meaning of section 120. An organization or trust which receives contributions because of section 120(c)(5)(C) shall not be prevented from qualifying as an organization described in this paragraph merely because it provides legal services or indemnification against the cost of legal services unassociated with a qualified group legal services plan.”

Subsec. (s). Puspan. L. 113–295, § 221(a)(62), struck out subsec. (s). Text read as follows: “For nonexemption of Communist-controlled organizations, see section 11(span) of the Internal Security Act of 1950 (64 Stat. 997; 50 U.S.C. 790(span)).”

2010—Subsec. (c)(9). Puspan. L. 111–152 inserted at end “For purposes of providing for the payment of sick and accident benefits to members of such an association and their dependents, the term ‘dependent’ shall include any individual who is a child (as defined in section 152(f)(1)) of a member who as of the end of the calendar year has not attained age 27.”

Subsec. (c)(29). Puspan. L. 111–148, § 1322(h)(1), added par. (29).

Subsec. (l)(4). Puspan. L. 111–148, § 6301(f), added par. (4).

Subsec. (r). Puspan. L. 111–148, § 9007(a), added subsec. (r). Former subsec. (r) redesignated (s).

Subsec. (r)(5)(A). Puspan. L. 111–148, § 10903(a), substituted “the amounts generally billed” for “the lowest amounts charged”.

Subsec. (s). Puspan. L. 111–148, § 9007(a), redesignated subsec. (r) as (s).

2006—Subsec. (c)(21)(C). Puspan. L. 109–280, § 862(a), amended introductory provisions and cls. (i) and (ii) generally. Prior to amendment, introductory provisions and cls. (i) and (ii) read as follows: “Payments described in subparagraph (A)(i)(IV) may be made from such trust during a taxable year only to the extent that the aggregate amount of such payments during such taxable year does not exceed the lesser of—

“(i) the excess (if any) (as of the close of the preceding taxable year) of—

“(I) the fair market value of the assets of the trust, over

“(II) 110 percent of the present value of the liability described in subparagraph (A)(i)(I) of such person, or

“(ii) the excess (if any) of—

“(I) the sum of a similar excess determined as of the close of the last taxable year ending before the date of the enactment of this subparagraph plus earnings thereon as of the close of the taxable year preceding the taxable year involved, over

“(II) the aggregate payments described in subparagraph (A)(i)(IV) made from the trust during all taxable years beginning after the date of the enactment of this subparagraph.”

Subsecs. (q), (r). Puspan. L. 109–280, § 1220(a), which directed the amendment of section 501 by adding subsec. (q) and redesignating former subsec. (q) as (r), without specifying the act to be amended, was executed by making the amendments to this section, which is section 501 of the Internal Revenue Code of 1986, to reflect the probable intent of Congress.

2005—Subsec. (c)(12)(C). Puspan. L. 109–58, § 1304(a), struck out concluding provisions which read as follows: “Clauses (ii) through (v) shall not apply to taxable years beginning after December 31, 2006.”

Subsec. (c)(12)(F). Puspan. L. 109–135, § 412(bspan)(1), substituted “subparagraph (C)(iv)” for “subparagraph (C)(iii)”.

Subsec. (c)(12)(G). Puspan. L. 109–135, § 412(bspan)(2), substituted “subparagraph (C)(v)” for “subparagraph (C)(iv)”.

Subsec. (c)(12)(H)(x). Puspan. L. 109–58, § 1304(span), struck out cl. (x) which read as follows: “This subparagraph shall not apply to taxable years beginning after December 31, 2006.”

Subsec. (c)(22)(B)(ii). Puspan. L. 109–135, § 412(cc), substituted “clause (ii) of paragraph (21)(D)” for “clause (ii) of paragraph (21)(B)”.

2004—Subsec. (c)(12)(C). Puspan. L. 108–357, § 319(a)(1), added cls. (ii) to (v) and concluding provisions and struck out former cl. (ii) which read as follows: “from the prepayment of a loan under section 306A, 306B, or 311 of the Rural Electrification Act of 1936 (as in effect on January 1, 1987).”

Subsec. (c)(12)(E) to (G). Puspan. L. 108–357, § 319(a)(2), added subpars. (E) to (G).

Subsec. (c)(12)(H). Puspan. L. 108–357, § 319(span), added subpar. (H).

Subsec. (c)(15)(A). Puspan. L. 108–218, § 206(a), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “Insurance companies or associations other than life (including interinsurers and reciprocal underwriters) if the net written premiums (or, if greater, direct written premiums) for the taxable year do not exceed $350,000.”

Subsec. (c)(15)(C). Puspan. L. 108–218, § 206(span), inserted before period at end “, except that in applying section 831(span)(2)(B)(ii) for purposes of this subparagraph, subparagraphs (B) and (C) of section 1563(span)(2) shall be disregarded”.

2003—Subsec. (c)(19)(B). Puspan. L. 108–121, § 105(a), substituted “, widowers, ancestors, or lineal descendants” for “or widowers”.

Subsecs. (p), (q). Puspan. L. 108–121, § 108(a), added subsec. (p) and redesignated former subsec. (p) as (q).

2001—Subsec. (c)(18)(D)(iii). Puspan. L. 107–16, § 611(d)(3)(C), struck out “(other than paragraph (4) thereof)” after “section 402(g)”.

Subsec. (c)(28). Puspan. L. 107–90 added par. (28).

1998—Subsec. (n)(3). Puspan. L. 105–206, § 6023(6), substituted “subparagraph (E)(ii)” for “subparagraph (C)(ii)” in concluding provisions.

Subsec. (o). Puspan. L. 105–206, § 6023(7), substituted “section 1855(d)” for “section 1853(e)”.

1997—Subsec. (c)(26). Puspan. L. 105–34, § 101(c), inserted concluding provisions “A spouse and any qualifying child (as defined in section 24(c)) of an individual described in subparagraph (B) (without regard to this sentence) shall be treated as described in subparagraph (B).”

Subsec. (c)(27). Puspan. L. 105–34, § 963(a), (span), designated existing provisions as subpar. (A), redesignated former subpar. (A) as cl. (i), redesignated subpar. (B) as cl. (ii) and former cls. (i) and (ii) of subpar. (B) as subcls. (I) and (II), respectively, of cl. (ii), redesignated subpar. (C) as cl. (iii) and former cls. (i) and (ii) of subpar. (C) as subcls. (I) and (II), respectively, of cl. (iii), and added subpar. (B).

Subsec. (e)(1)(A). Puspan. L. 105–34, § 974(a), inserted “(including the purchase of patron accounts receivable on a recourse basis)” after “billing and collection”.

Subsecs. (o), (p). Puspan. L. 105–33 added subsec. (o) and redesignated former subsec. (o) as (p).

1996—Subsec. (c)(4). Puspan. L. 104–168 designated existing provisions as subpar. (A) and added subpar. (B).

Subsec. (c)(21)(D)(ii)(III). Puspan. L. 104–188, § 1704(j)(5), substituted “section 101(7)” for “section 101(6)” and “1752(7)” for “1752(6)”.

Subsec. (c)(26). Puspan. L. 104–191, § 341(a), added par. (26).

Subsec. (c)(27). Puspan. L. 104–191, § 342(a), added par. (27).

Subsecs. (n), (o). Puspan. L. 104–188, § 1114(a), added subsec. (n) and redesignated former subsec. (n) as (o).

1993—Subsec. (c)(2). Puspan. L. 103–66, § 13146(span), inserted at end “Rules similar to the rules of subparagraph (G) of paragraph (25) shall apply for purposes of this paragraph.”

Subsec. (c)(25)(G). Puspan. L. 103–66, § 13146(a), added subpar. (G).

1992—Subsec. (c)(21). Puspan. L. 102–486 amended par. (21) generally, substituting present provisions consisting of subpars. (A) to (D) for former provisions consisting of subpars. (A) and (B).

1989—Subsec. (l). Puspan. L. 101–73 amended subsec. (l) generally. Prior to amendment, subsec. (l) read as follows: “The organization described in this subsection is the Central Liquidity Facility established under title III of the Federal Credit Union Act (12 U.S.C. 1795 et seq.).”

1988—Subsec. (c)(1). Puspan. L. 100–647, § 1018(u)(15), substituted “Any” for “any”.

Subsec. (c)(12)(B)(iv). Puspan. L. 100–647, § 2003(a)(1), added cl. (iv).

Subsec. (c)(12)(C). Puspan. L. 100–647, § 2003(a)(2), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “In the case of a mutual or cooperative electric company, subparagraph (A) shall be applied without taking into account any income received or accrued from qualified pole rentals.”

Subsec. (c)(17)(A)(ii), (iii), (18)(B), (C). Puspan. L. 100–647, § 1018(u)(34), made technical amendments to Puspan. L. 99–154, § 1114(span)(14). See 1986 Amendment note below.

Subsec. (c)(18)(D)(iv). Puspan. L. 100–647, § 1011(c)(7)(D), added cl. (iv).

Subsec. (c)(23). Puspan. L. 100–647, § 1018(u)(14), substituted “Any” for “any”.

Subsec. (c)(25)(A). Puspan. L. 100–647, § 1016(a)(1)(A), inserted at end “For purposes of clause (iii), the term ‘real property’ shall not include any interest as a tenant in common (or similar interest) and shall not include any indirect interest.”

Subsec. (c)(25)(C)(v). Puspan. L. 100–647, § 1016(a)(3)(B), struck out cl. (v) which read as follows: “any organization described in this paragraph.”

Subsec. (c)(25)(D). Puspan. L. 100–647, § 1016(a)(2), substituted “A corporation or trust shall in no event be treated as described in subparagraph (A) unless such corporation or trust permits its shareholders or beneficiaries” for “A corporation or trust described in this paragraph must permit its shareholders or beneficiaries” in introductory text.

Subsec. (c)(25)(E), (F). Puspan. L. 100–647, § 1016(a)(3)(A), (4), added subpars. (E) and (F).

Subsec. (e)(1)(A). Puspan. L. 100–647, § 6202(a), inserted “(including the purchasing of insurance on a group basis)” after “purchasing”.

Subsec. (m)(3)(E). Puspan. L. 100–647, § 1010(span)(4)(A), added subpar. (E).

Subsec. (m)(5). Puspan. L. 100–647, § 1010(span)(4)(B), added par. (5).

1987—Subsec. (c)(3). Puspan. L. 100–203 inserted “(or in opposition to)” after “in behalf of”.

1986—Subsec. (c)(1)(A)(i). Puspan. L. 99–514, § 1899A(15), substituted “July 18, 1984” for “the date of the enactment of the Tax Reform Act of 1984”.

Subsec. (c)(14)(B)(iv). Puspan. L. 99–514, § 1879(k)(1), added cl. (iv).

Subsec. (c)(15). Puspan. L. 99–514, § 1024(span), amended par. (15) generally. Prior to amendment, par. (15) read as follows: “Mutual insurance companies or associations other than life or marine (including inter-insurers and reciprocal underwriters) if the gross amount received during the taxable year from the items described in section 822(span) (other than paragraph (1)(D) thereof) and premiums (including deposits and assessments) does not exceed $150,000.”

Subsec. (c)(17)(A)(ii), (iii), (18)(B), (C). Puspan. L. 99–514, § 1114(span)(14), as amended by Puspan. L. 100–647, § 1018(u)(34), substituted “highly compensated employees (within the meaning of section 414(q))” for “officers, shareholders, persons whose principal duties consist of supervising the work of other employees, or highly compensated employees”.

Subsec. (c)(18)(D). Puspan. L. 99–514, § 1109(a), added subpar. (D).

Subsec. (c)(24). Puspan. L. 99–272 added par. (24).

Subsec. (c)(25). Puspan. L. 99–514, § 1603(a), added par. (25).

Subsecs. (m), (n). Puspan. L. 99–514, § 1012(a), added subsec. (m) and redesignated former subsec. (m) as (n).

1984—Subsec. (c)(1). Puspan. L. 98–369, § 2813(span)(2), designated existing provisions as subpar. (A) and added subpar. (B).

Subsec. (c)(1)(A). Puspan. L. 98–369, § 1079, substituted provisions referring to corporations exempt from Federal income taxes under any Act of Congress as amended and supplemented before July 18, 1984, or under this title without regard to any provision of law not contained in this title and not contained in a revenue Act for provisions referring to corporations exempt from Federal income taxes under any Act of Congress as amended and supplemented.

Subsec. (k). Puspan. L. 98–369, § 1032(a), added subsec. (k). Former subsec. (k) redesignated (l).

Subsec. (l). Puspan. L. 98–369, § 2813(span)(1), added subsec. (l). Former subsec. (l) redesignated (m).

Puspan. L. 98–369, § 1032(a), redesignated former subsec. (k) as (l).

Subsec. (m). Puspan. L. 98–369, § 2813(span)(1), redesignated former subsec. (l) as (m).

1983—Subsec. (c)(23). Puspan. L. 97–448 substituted “75 percent” for “25 percent”.

1982—Subsec. (c)(19). Puspan. L. 97–248, § 354(a)(1), substituted “past or present members of the Armed Forces of the United States” for “war veterans” after “A post or organization of”.

Subsec. (c)(19)(B). Puspan. L. 97–248, § 354(a)(2), substituted “past or present members of the Armed Forces of the United States” for “war veterans” wherever appearing, struck out “veterans (but not war veterans), or are” after “individuals who are”, and substituted “or of cadets” for “or such individuals” before “, and”.

Subsec. (c)(23). Puspan. L. 97–248, § 354(span), added par. (23).

Subsecs. (j), (k). Puspan. L. 97–248, § 286(a), added subsec. (j) and redesignated former subsec. (j) as (k).

1981—Subsec. (c)(21)(B)(iii). Puspan. L. 97–119 substituted “established under section 9501” for “established under section 3 of the Black Lung Benefits Revenue Act of 1977”.

1980—Subsec. (c)(12). Puspan. L. 96–605 designated existing provision as subpar. (A), struck out provision that, in the case of any mutual or cooperative telephone company, the 85 per cent or more income requirement be applied without taking into account any income received or accrued from a nonmember telephone company for the performance of communication services which involve members of such mutual or cooperative telephone company, and added subpars. (B) to (D).

Subsec. (c)(21). Puspan. L. 96–222 substituted “Federal Mine Safety and Health Act of 1977” for “Federal Coal Mine Health and Safety Act of 1969”.

Subsec. (c)(22). Puspan. L. 96–364 added par. (22).

Subsec. (i). Puspan. L. 96–601 inserted provision that the restriction on religious discrimination not apply to an auxiliary of a fraternal beneficiary society if the society is described in subsec. (c)(8) of this section, is exempt from income tax under subsec. (a) of this section, and limits its membership to the members of a particular religion or to a cluspan which in good faith limits its membership to the members of a particular religion in order to further the teachings or principles of that religion, and not to exclude individuals of a particular race or color.

1978—Subsec. (c)(12). Puspan. L. 95–345 inserted provision relating to applicability of statutory provisions to mutual or cooperative telephone company of income received or accrued from a nonmember telephone company.

Subsec. (c)(20). Puspan. L. 95–600, § 703(span)(2), substituted “this paragraph” for “section 501(c)(20)”.

Subsec. (c)(21). Puspan. L. 95–227 added par. (21).

Subsecs. (g), (i). Puspan. L. 95–600, § 703(g)(2)(B), redesignated subsec. (g), which was added by section 2(a) of Puspan. L. 94–568, as subsec. (i). Former subsec. (i), relating to cross reference, redesignated (j).

Subsecs. (i), (j). Puspan. L. 95–600, § 703(g)(2)(A), amended Puspan. L. 95–600, § 2(a). See 1976 Amendment note below.

1976—Subsec. (c)(3). Puspan. L. 94–455, §§ 1313(a), 1307(d)(1)(A), inserted “or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment)” after “educational purposes” and inserted “(except as otherwise provided in subsection (h))” after “influence legislation”.

Subsec. (c)(7). Puspan. L. 94–568, § 1(a), struck out requirement that clubs be “operated exclusively” for specified purposes but required that substantially all of cluspan activities be for specified purposes.

Subsec. (c)(17), (18). Puspan. L. 94–455, § 1906(span)(13)(A), struck out “or his delegate” after “Secretary”.

Subsec. (c)(20). Puspan. L. 94–455, § 2134(span), added par. (20).

Subsec. (e)(1)(A). Puspan. L. 94–455, § 1312(a), inserted “clinical” after “food”.

Subsec. (g). Puspan. L. 94–568, § 2(a), added subsec. (g) relating to prohibition of discrimination by certain social clubs.

Puspan. L. 94–455, § 2113(a), added subsec. (g) defining agricultural. Former subsec. (g) redesignated (h).

Subsec. (h). Puspan. L. 94–455, §§ 1307(a)(1), 2113(a), added subsec. (h). Former subsec. (g), relating to cross reference, redesignated (h) and further redesignated (i).

Subsec. (i). Puspan. L. 94–568, § 2(a), as amended by Puspan. L. 95–600, § 703(g)(2)(A), added subsec. (i). Former subsec. (i) redesignated (j).

Puspan. L. 94–455, § 1307(a)(1), redesignated subsec. (h), relating to cross reference, as (i).

Subsec. (j). Puspan. L. 94–568, § 2(a), as amended by Puspan. L. 95–600, § 703(g)(2)(A), redesignated subsec. (i), relating to cross reference, as (j).

1975—Subsec. (span). Puspan. L. 93–625 inserted references to part VI of this subchapter.

1974—Subsecs. (f), (g). Puspan. L. 93–310 added subsec. (f) and redesignated former subsec. (f) as (g).

1972—Subsec. (c)(19). Puspan. L. 92–418 added par. (19).

1970—Subsec. (c)(13). Puspan. L., 91–618 substituted “corporation chartered solely for the purpose of disposal of bodies by burial or cremation which is not permitted” for “corporation chartered solely for burial purposes as a cemetery corporation and is not permitted”.

1969—Subsec. (a). Puspan. L. 91–172, § 101(j)(3), struck out reference to section 504.

Subsec. (span). Puspan. L. 91–172, § 101(j)(4), inserted reference to certain other activities in span and to part III in text, and struck out reference to tax on unrelated income.

Subsec. (c). Puspan. L. 91–172, §§ 101(j)(5), 121(span)(6)(A), substituted “part IV” for “part III” after “Corporations organized by an association subject to” and added par. 18.

Subsec. (c)(9). Puspan. L. 91–172, § 121(span)(5)(A), inserted reference to designated beneficiaries and struck out reference to 85 percent or more income of voluntary employees’ beneficiary associations.

Subsec. (c)(10). Puspan. L. 91–172, § 121(span)(5)(A), substituted provisions concerning domestic fraternal societies, orders, or associations, operating under the lodge system, for provisions covering voluntary employees’ beneficiary associations which would pay benefits to designated beneficiaries of members.

Subsec. (e). Puspan. L. 91–172, § 101(j)(6), substituted “section 170(span)(1)(A)(iii)” for “section 503(span)(5)” in last sentence.

1968—Subsecs. (e), (f). Puspan. L. 90–364 added subsec. (e) and redesignated former subsec. (e) as (f).

1966—Subsec. (c)(6). Puspan. L. 89–800 inserted reference to professional football leagues (whether or not administering a pension fund for football players).

Subsec. (c)(14). Puspan. L. 89–352 designated as subpar. (A) provisions covering credit unions which were formerly set out preceding subpar. (A), designated as subpar. (B) and clauses (i), (ii), and (iii) thereunder provisions covering corporation or associations without capital stock organized before Sept. 1, 1957, which formerly were set out as provisions preceding subpar. (A) and as subpars. (A), (B), and (C), respectively, and added subpar. (C).

1962—Subsec. (c)(15). Puspan. L. 87–834 substituted “$150,000” for “$75,000”.

1960—Subsec. (c)(14). Puspan. L. 86–428 substituted “September 1, 1957” for “September 1, 1951”.

Subsec. (c)(17). Puspan. L. 86–667 added par. (17).

1956—Subsec. (c)(15). Act Mar. 13, 1956, substituted “the items described in section 822(span) (other than paragraph (1)(D) thereof)” for “interest, dividends, rents,”.

Statutory Notes and Related Subsidiaries

Effective Date of 2019 Amendment

Puspan. L. 116–94, div. Q, title III, § 301(span), Dec. 20, 2019, 133 Stat. 3248, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 2017.”

Effective Date of 2018 Amendment

Puspan. L. 115–141, div. U, title I, § 109(c), Mar. 23, 2018, 132 Stat. 1171, provided that: “The amendments made by this section [amending this section and section 1361 of this title] shall take effect as if included in section 319 of the American Jobs Creation Act of 2004 [Puspan. L. 108–357].”

Amendment by Puspan. L. 115–123 applicable to taxable years beginning after Fespan. 9, 2018, see section 40501(c)(2) of Puspan. L. 115–123, set out in a note under section 45J of this title.

Effective Date of 2015 Amendment

Amendment by Puspan. L. 114–113 applicable to contributions made on and after Dec. 18, 2015, see section 331(c) of Puspan. L. 114–113, set out as a note under section 170 of this title.

Effective Date of 2014 Amendment

Amendment by Puspan. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(span) of Puspan. L. 113–295, set out as a note under section 1 of this title.

Effective Date of 2010 Amendment

Puspan. L. 111–148, title IX, § 9007(f), Mar. 23, 2010, 124 Stat. 858, provided that:

“(1)In general.—Except as provided in paragraphs (2) and (3), the amendments made by this section [enacting section 4959 of this title and amending this section and section 6033 of this title] shall apply to taxable years beginning after the date of the enactment of this Act [Mar. 23, 2010].

“(2)Community health needs assessment.—The requirements of section 501(r)(3) of the Internal Revenue Code of 1986, as added by subsection (a), shall apply to taxable years beginning after the date which is 2 years after the date of the enactment of this Act.

“(3)Excise tax.—The amendments made by subsection (span) [enacting section 4959 of this title] shall apply to failures occurring after the date of the enactment of this Act.”

Puspan. L. 111–148, title X, § 10903(span), Mar. 23, 2010, 124 Stat. 1016, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after the date of the enactment of this Act [Mar. 23, 2010].”

Effective Date of 2006 Amendment

Puspan. L. 109–280, title VIII, § 862(span), Aug. 17, 2006, 120 Stat. 1021, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2006.”

Puspan. L. 109–280, title XII, § 1220(c), Aug. 17, 2006, 120 Stat. 1089, provided that:

“(1)In general.—Except as provided in paragraph (2), the amendments made by this section [amending this section and section 513 of this title] shall apply to taxable years beginning after the date of the enactment of this Act [Aug. 17, 2006].

“(2)Transition rule for existing organizations.—In the case of any organization described in paragraph (3) or (4) of section 501(c) of the Internal Revenue Code of 1986 and with respect to which the provision of credit counseling services is a substantial purpose on the date of the enactment of this Act, the amendments made by this section shall apply to taxable years beginning after the date which is 1 year after the date of the enactment of this Act.”

Effective Date of 2005 Amendment

Puspan. L. 109–58, title XIII, § 1304(c), Aug. 8, 2005, 119 Stat. 997, provided that: “The amendments made by this section [amending this section] shall take effect on the date of the enactment of this Act [Aug. 8, 2005].”

Effective Date of 2004 Amendment

Puspan. L. 108–357, title III, § 319(e), Oct. 22, 2004, 118 Stat. 1473, provided that: “The amendments made by this section [amending this section and sections 512 and 1381 of this title] shall apply to taxable years beginning after the date of the enactment of this Act [Oct. 22, 2004].”

Puspan. L. 108–218, title II, § 206(e), Apr. 10, 2004, 118 Stat. 611, provided that:

“(1)In general.—Except as provided in paragraph (2), the amendments made by this section [amending this section and section 831 of this title] shall apply to taxable years beginning after December 31, 2003.

“(2)Transition rule for companies in receivership or liquidation.—In the case of a company or association which—

“(A) for the taxable year which includes April 1, 2004, meets the requirements of section 501(c)(15)(A) of the Internal Revenue Code of 1986, as in effect for the last taxable year beginning before January 1, 2004, and

“(B) on April 1, 2004, is in a receivership, liquidation, or similar proceeding under the supervision of a State court,

the amendments made by this section shall apply to taxable years beginning after the earlier of the date such proceeding ends or December 31, 2007.”

Effective Date of 2003 Amendment

Puspan. L. 108–121, title I, § 105(span), Nov. 11, 2003, 117 Stat. 1338, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after the date of the enactment of this Act [Nov. 11, 2003].”

Puspan. L. 108–121, title I, § 108(span), Nov. 11, 2003, 117 Stat. 1341, provided that: “The amendments made by this section [amending this section] shall apply to designations made before, on, or after the date of the enactment of this Act [Nov. 11, 2003].”

Effective Date of 2001 Amendment

Amendment by Puspan. L. 107–16 applicable to years beginning after Dec. 31, 2001, see section 611(i)(1) of Puspan. L. 107–16, set out as a note under section 415 of this title.

Effective Date of 1997 Amendment

Amendment by section 101(c) of Puspan. L. 105–34 applicable to taxable years beginning after Dec. 31, 1997, see section 101(e) of Puspan. L. 105–34, set out as an Effective Date note under section 24 of this title.

Puspan. L. 105–34, title IX, § 963(c), Aug. 5, 1997, 111 Stat. 892, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 1997.”

Puspan. L. 105–34, title IX, § 974(span), Aug. 5, 1997, 111 Stat. 898, provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 1996.”

Puspan. L. 105–33, title IV, § 4041(span), Aug. 5, 1997, 111 Stat. 360, provided that: “The amendment made by subsection (a) [amending this section] shall take effect on the date of the enactment of this Act [Aug. 5, 1997].”

Effective Date of 1996 Amendment

Puspan. L. 104–191, title III, § 341(span), Aug. 21, 1996, 110 Stat. 2070, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 1996.”

Puspan. L. 104–191, title III, § 342(span), Aug. 21, 1996, 110 Stat. 2071, provided that: “The amendment made by this section [amending this section] shall apply to taxable years ending after the date of the enactment of this Act [Aug. 21, 1996].”

Puspan. L. 104–188, title I, § 1114(span), Aug. 20, 1996, 110 Stat. 1760, provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after the date of the enactment of this Act [Aug. 20, 1996].”

Puspan. L. 104–168, title XIII, § 1311(d)(3), July 30, 1996, 110 Stat. 1478, provided that:

“(A)In general.—The amendment made by subsection (span) [amending this section] shall apply to inurement occurring on or after September 14, 1995.

“(B)Binding contracts.—The amendment made by subsection (span) shall not apply to any inurement occurring before January 1, 1997, pursuant to a written contract which was binding on September 13, 1995, and at all times thereafter before such inurement occurred.”

Effective Date of 1993 Amendment

Puspan. L. 103–66, title XIII, § 13146(c), Aug. 10, 1993, 107 Stat. 443, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning on or after January 1, 1994.”

Effective Date of 1992 Amendment

Amendment by Puspan. L. 102–486 applicable to taxable years beginning after Dec. 31, 1991, see section 1940(d) of Puspan. L. 102–486, set out as a note under section 192 of this title.

Effective Date of 1989 Amendment

Puspan. L. 101–73, title XIV, § 1402(span), Aug. 9, 1989, 103 Stat. 551, provided that: “The amendment made by subsection (a) [amending this section] shall take effect on the date of the enactment of this Act [Aug. 9, 1989].”

Effective Date of 1988 Amendment

Amendment by section 1011(c)(7)(D) of Puspan. L. 100–647 applicable to plan years beginning after Dec. 31, 1987, with exception in case of a plan described in section 1105(c)(2) of Puspan. L. 99–514, see section 1011(c)(7)(E) of Puspan. L. 100–647, set out as a note under section 401 of this title.

Puspan. L. 100–647, title I, § 1016(a)(1)(B), Nov. 10, 1988, 102 Stat. 3573, provided that: “The amendment made by subparagraph (A) [amending this section] shall apply with respect to property acquired by the organization after June 10, 1987, except that such amendment shall not apply to any property acquired after June 10, 1987, pursuant to a binding written contract in effect on June 10, 1987, and at all times thereafter before such acquisition.”

Amendment by sections 1010(span)(4), 1016(a)(2)–(4), and 1018(u)(14), (15), (34) of Puspan. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Puspan. L. 99–514, to which such amendment relates, see section 1019(a) of Puspan. L. 100–647, set out as a note under section 1 of this title.

Puspan. L. 100–647, title II, § 2003(a)(3), Nov. 10, 1988, 102 Stat. 3598, provided that: “The amendments made by this subsection [amending this section] shall apply to taxable years ending after the date of the enactment of the Omnibus Budget Reconciliation Act of 1986 [Oct. 21, 1986].”

Puspan. L. 100–647, title VI, § 6202(span), Nov. 10, 1988, 102 Stat. 3730, provided that: “The amendment made by subsection (a) [amending this section] shall apply to purchases before, on, or after the date of the enactment of this Act [Nov. 10, 1988].”

Effective Date of 1987 Amendment

Amendment by Puspan. L. 100–203 applicable with respect to activities after Dec. 22, 1987, see section 10711(c) of Puspan. L. 100–203, set out as a note under section 170 of this title.

Effective Date of 1986 Amendment

Amendment by section 1012(a) of Puspan. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, see section 1012(c) of Puspan. L. 99–514, set out as an Effective Date note under section 833 of this title.

Amendment by section 1024(span) of Puspan. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, see section 1024(e) of Puspan. L. 99–514, set out as a note under section 831 of this title.

Amendment by section 1109(a) of Puspan. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, see section 1109(c) of Puspan. L. 99–514, set out as a note under section 219 of this title.

Amendment by section 1114(span)(14) of Puspan. L. 99–514 applicable to years beginning after Dec. 31, 1986, see section 1114(c)(1) of Puspan. L. 99–514, set out as a note under section 414 of this title.

Puspan. L. 99–514, title XVI, § 1603(c), Oct. 22, 1986, 100 Stat. 2769, provided that: “The amendments made by this section [amending this section and section 514 of this title] shall apply to taxable years beginning after December 31, 1986.”

Puspan. L. 99–514, title XVIII, § 1879(k)(2), Oct. 22, 1986, 100 Stat. 2909, provided that: “The amendments made by this subsection [amending this section] shall apply to taxable years ending after August 13, 1981.”

Amendment by Puspan. L. 99–272 effective Jan. 1, 1986, with certain exceptions, see section 11019 of Puspan. L. 99–272, set out as a note under section 1341 of Title 29, Labor.

Effective Date of 1984 Amendment

Amendment by section 1032 of Puspan. L. 98–369 applicable to taxable years beginning after July 18, 1984, see section 1032(c) of Puspan. L. 98–369, set out as a note under section 170 of this title.

Amendment by section 2813(span) of Puspan. L. 98–369 effective Oct. 1, 1979, see section 2813(c) of Puspan. L. 98–369, set out as an Effective Date note under section 1795k of Title 12, Banks and Banking.

Effective Date of 1983 Amendment

Amendment by Puspan. L. 97–448 effective as if included in the provisions of the Tax Equity and Fiscal Responsibility Act of 1982, Puspan. L. 97–248, to which such amendment relates, see section 311(d) of Puspan. L. 97–448, set out as a note under section 31 of this title.

Effective Date of 1982 Amendment

Puspan. L. 97–248, title II, § 286(c), Sept. 3, 1982, 96 Stat. 570, provided that: “The amendments made by this section [amending this section and sections 170, 2055, and 2522 of this title] shall take effect on October 5, 1976.”

Puspan. L. 97–248, title III, § 354(c), Sept. 3, 1982, 96 Stat. 641, provided that: “The amendments made by subsections (a) and (span) [amending this section] shall apply to taxable years beginning after the date of the enactment of this Act [Sept. 3, 1982].”

Effective Date of 1981 Amendment

Amendment by Puspan. L. 97–119 effective Jan. 1, 1982, see section 103(d)(1) of Puspan. L. 97–119, set out as an Effective Date note under section 9501 of this title.

Effective Date of 1980 Amendment

Puspan. L. 96–605, title I, § 106(c)(1), Dec. 28, 1980, 94 Stat. 3524, as amended by Puspan. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “The amendments made by subsection (a) [amending this section] shall apply to all taxable years to which the Internal Revenue Code of 1986 [formerly I.R.C. 1954] applies.”

Puspan. L. 96–601, § 3(span), Dec. 24, 1980, 94 Stat. 3496, provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after October 20, 1976.”

Amendment by Puspan. L. 96–364 applicable to taxable years ending after Sept. 26, 1980, see section 210(c) of Puspan. L. 96–364, set out as an Effective Date note under section 194A of this title.

Amendment by Puspan. L. 96–222 effective, except as otherwise provided, as if it had been included in the provisions of the Revenue Act of 1978, Puspan. L. 95–600, to which such amendment relates, see section 201 of Puspan. L. 96–222, set out as an Effective Date of 1980 Amendment note under section 32 of this title.

Effective Date of 1978 Amendment

Amendment by section 703(span)(2), (g)(2)(B) of Puspan. L. 95–600 effective on Oct. 4, 1976, see section 703(r) of Puspan. L. 95–600, set out as a note under section 46 of this title.

Puspan. L. 95–600, title VII, § 703(g)(2)(C), Nov. 6, 1978, 92 Stat. 2940, provided that: “The amendments made by this paragraph [amending this section] shall take effect on October 20, 1976, as if included in Public Law 94–568.”

Puspan. L. 95–345, § 1(span), Aug. 15, 1978, 92 Stat. 481, provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 1974.”

Amendment by Puspan. L. 95–227 applicable with respect to contributions, acts, and expenditures made after Dec. 31, 1977, in and for taxable years beginning after such date, see section 4(f) of Puspan. L. 95–227, set out as a note under section 192 of this title.

Effective Date of 1976 Amendment

Puspan. L. 94–568, § 1(d), Oct. 20, 1976, 90 Stat. 2697, provided that: “The amendments made by this section [amending this section and sections 277 and 512 of this title] shall apply to taxable years beginning after the date of the enactment of this Act [Oct. 20, 1976].”

Puspan. L. 94–568, § 2(span), Oct. 20, 1976, 90 Stat. 2697, provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after the date of the enactment of this Act [Oct. 20, 1976].”

Puspan. L. 94–455, title XIII, § 1307(e), Oct. 4, 1976, 90 Stat. 1728, provided that: “The amendments made by this section [amending this section and sections 170, 275, 2055, 2106, 2522, 6104, 6161, 6201, 6211, 6212, 6213, 6214, 6344, 6501, 6512, 6601, and 7422 of this title and enacting sections 504 and 4911 of this title] shall apply—

“(1) except as otherwise specified in paragraph (2), in the case of amendments to subtitle A, to taxable years beginning after December 31, 1976;

“(2) in the case of the amendments made by subsection (a)(2) [enacting section 504 of this title], to activities occurring after the date of the enactment of this Act [Oct. 4, 1976];

“(3) in the case of amendments to chapter 11, to the estates of decedents dying after December 31, 1976;

“(4) in the case of amendments to chapter 12, to gifts in calendar years beginning after December 31, 1976;

“(5) in the case of amendments to subtitle D, to taxable years beginning after December 31, 1976; and

“(6) in the case of amendments to subtitle F, on and after the date of the enactment of this Act [Oct. 4, 1976].”

Puspan. L. 94–455, title XIII, § 1312(span), Oct. 4, 1976, 90 Stat. 1730, provided that: “The amendment made by this section [amending this section] shall apply to taxable years ending after December 31, 1976.”

Puspan. L. 94–455, title XIII, § 1313(d), Oct. 4, 1976, 90 Stat. 1730, provided that: “The amendments made by this section [amending this section and sections 170, 2055, and 2522 of this title] shall apply on the day following the date of the enactment of this Act [Oct. 4, 1976].”

Puspan. L. 94–455, title XXI, § 2113(span), Oct. 4, 1976, 90 Stat. 1907, provided that: “The amendment made by this section [amending this section] applies to taxable years ending after December 31, 1975.”

Puspan. L. 94–455, title XXI, § 2134(e), Oct. 4, 1976, 90 Stat. 1928, as amended by Puspan. L. 95–600, title VII, § 703(span)(1), Nov. 6, 1978, 92 Stat. 2939; Puspan. L. 97–34, title VIII, § 802(span), Aug. 13, 1981, 95 Stat. 349; Puspan. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

“(1)In general.—Except as provided in paragraph (2), the amendments made by this section [enacting section 120 of this title and amending this section] shall apply to taxable years beginning after December 31, 1976.

“(2)Notice requirement.—For purposes of [former] section 120(d)(7) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] the time prescribed by the Secretary of the Treasury by regulations for giving the notice required by section 120(c)(4) of such Code shall not expire before the 90th day after the day on which regulations prescribed under such section 120(c)(4) first become final.

“(3)Existing plans.—

“(A) For purposes of [former] section 120 of the Internal Revenue Code of 1986, a written group legal services plan which was in existence on June 4, 1976, shall be considered as satisfying the requirements of subsections (span) and (c) of such section 120 for the period ending with the compliance date (determined under subparagraph (B)).

“(B)Compliance date.—For purposes of this paragraph, the term ‘compliance date’ means—

“(i) the date occurring 180 days after the date of the enactment of this Act [Oct. 4, 1976], or

“(ii) if later, in the case of a plan which is maintained pursuant to one or more agreements which the Secretary of Labor finds to be collective bargaining agreements, the earlier of December 31, 1981, or the date on which the last of the collective bargaining agreements relating to the plan terminates (determined without regard to any extension thereof agreed to after the date of the enactment of this Act [Oct. 4, 1976]).”

Effective Date of 1975 Amendment

Amendment by Puspan. L. 93–625 applicable to taxable years beginning after Dec. 31, 1974, see section 10(e) of Puspan. L. 93–625, set out as an Effective Date note under section 527 of this title.

Effective Date of 1974 Amendment

Puspan. L. 93–310, § 3(span), June 8, 1974, 88 Stat. 235, provided that: “The amendments made by this section [amending this section] shall apply to taxable years ending after December 31, 1973.”

Effective Date of 1972 Amendment

Puspan. L. 92–418, § 1(c), Aug. 29, 1972, 86 Stat. 656, provided that: “The amendments made by this section [amending this section and section 512 of this title] shall apply to taxable years beginning after December 31, 1969.”

Effective Date of 1970 Amendment

Puspan L. 91–618, § 2, Dec. 31, 1970, 84 Stat. 1855, provided that: “The amendment made by the first section of this Act [amending this section] shall apply to taxable years ending after the date of enactment of this Act [Dec. 31, 1970].”

Effective Date of 1969 Amendment

Amendment by section 101(j)(3) of Puspan. L. 91–172 effective Jan. 1, 1970, except that amendment of subsec. (a) of this section applicable to taxable years beginning after Dec. 31, 1969, see section 101(k)(1), (2)(B) of Puspan. L. 91–172, set out as an Effective Date note under section 4940 of this title.

Amendment by section 121(span)(5)(A), (6)(A) of Puspan. L. 91–172 applicable to taxable years beginning after Dec. 31, 1969, see section 121(g) of Puspan. L. 91–172, set out as a note under section 511 of this title.

Effective Date of 1968 Amendment

Puspan. L. 90–364, title I, § 109(span), June 28, 1968, 82 Stat. 270, provided that: “The amendments made by subsection (a) [amending this section] shall apply to taxable years ending after the date of the enactment of this Act [June 28, 1968].”

Effective Date of 1966 Amendment

Puspan. L. 89–800, § 6(c), Nov. 8, 1966, 80 Stat. 1516, provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years ending after the date of the enactment of this Act [Nov. 8, 1966].”

Puspan. 89–352, § 3, Fespan. 2, 1966, 80 Stat. 4, provided in part that: “The amendment made by the first section of this Act [amending this section] shall apply to taxable years ending after the date of the enactment of this Act [Fespan. 2, 1966].”

Effective Date of 1962 Amendment

Puspan. L. 87–834, § 8(h), Oct. 16, 1962, 76 Stat. 999, provided that: “The amendments made by this section [enacting sections 823 to 826 of this title, amending this section and sections 821, 822, 832, 841, 1016, and 1201 of this title, and redesignating former section 823 as section 822(f) of this title] (other than by subsection (f) [amending section 831 of this title]) shall apply with respect to taxable years beginning after December 31, 1962.”

Effective Date of 1960 Amendment

Puspan. L. 86–667, § 6, July 14, 1960, 74 Stat. 536, provided that:

“(a) Except as provided in subsection (span), the amendments made by this Act [amending this section and sections 503, 511, 513, and 514 of this title] shall apply to taxable years beginning after December 31, 1959.

“(span) In the case of loans, the amendments made by section 2 of this Act [amending section 503 of this title] shall apply only to loans made, renewed, or continued after December 31, 1959.”

Puspan. L. 86–428, § 2, Apr. 22, 1960, 74 Stat. 54, provided that: “The amendment made by this Act [amending this section] shall apply only with respect to taxable years beginning after December 31, 1959.”

Effective Date of 1956 Amendment

Amendment by act Mar. 13, 1956, applicable only to taxable years beginning after Dec. 31, 1954, see section 6 of act Mar. 13, 1956, set out as a note under section 316 of this title.

Regulations

Secretary of the Treasury or his delegate to issue before Fespan. 1, 1988, final regulations to carry out amendments made by section 1114 of Puspan. L. 99–514, see section 1141 of Puspan. L. 99–514, set out as a note under section 401 of this title.

Savings Provision

For provisions that nothing in amendment by section 401(span)(22) of Puspan. L. 115–141 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Mar. 23, 2018, for purposes of determining liability for tax for periods ending after Mar. 23, 2018, see section 401(e) of Puspan. L. 115–141, set out as a note under section 23 of this title.

Mandatory Review of Tax Exemption for Hospitals

Puspan. L. 111–148, title IX, § 9007(c), Mar. 23, 2010, 124 Stat. 857, provided that: “The Secretary of the Treasury or the Secretary’s delegate shall review at least once every 3 years the community benefit activities of each hospital organization to which section 501(r) of the Internal Revenue Code of 1986 (as added by this section) applies.”

Reports

Puspan. L. 111–148, title IX, § 9007(e), Mar. 23, 2010, 124 Stat. 858, provided that:

“(1)Report on levels of charity care.—The Secretary of the Treasury, in consultation with the Secretary of Health and Human Services, shall submit to the Committees on Ways and Means, Education and Labor [now Committee on Education and the Workforce], and Energy and Commerce of the House of Representatives and to the Committees on Finance and Health, Education, Labor, and Pensions of the Senate an annual report on the following:

“(A) Information with respect to private tax-exempt, taxable, and government-owned hospitals regarding—

“(i) levels of charity care provided,

“(ii) bad debt expenses,

“(iii) unreimbursed costs for services provided with respect to means-tested government programs, and

“(iv) unreimbursed costs for services provided with respect to non-means tested government programs.

“(B) Information with respect to private tax-exempt hospitals regarding costs incurred for community benefit activities.

“(2)Report on trends.—

“(A)Study.—The Secretary of the Treasury, in consultation with the Secretary of Health and Human Services, shall conduct a study on trends in the information required to be reported under paragraph (1).

“(B)Report.—Not later than 5 years after the date of the enactment of this Act [Mar. 23, 2010], the Secretary of the Treasury, in consultation with the Secretary of Health and Human Services, shall submit a report on the study conducted under subparagraph (A) to the Committees on Ways and Means, Education and Labor [now Committee on Education and the Workforce], and Energy and Commerce of the House of Representatives and to the Committees on Finance and Health, Education, Labor, and Pensions of the Senate.”

Payments by Charitable Organizations Treated as Exempt Payments

Puspan. L. 107–134, title I, § 104, Jan. 23, 2002, 115 Stat. 2431, provided that:

“(a)In General.—For purposes of the Internal Revenue Code of 1986—

“(1) payments made by an organization described in section 501(c)(3) of such Code by reason of the death, injury, wounding, or illness of an individual incurred as the result of the terrorist attacks against the United States on September 11, 2001, or an attack involving anthrax occurring on or after September 11, 2001, and before January 1, 2002, shall be treated as related to the purpose or function constituting the basis for such organization’s exemption under section 501 of such Code if such payments are made in good faith using a reasonable and objective formula which is consistently applied; and

“(2) in the case of a private foundation (as defined in section 509 of such Code), any payment described in paragraph (1) shall not be treated as made to a disqualified person for purposes of section 4941 of such Code.

“(span)Effective Date.—This section shall apply to payments made on or after September 11, 2001.”

Special Rule for Certain Cooperatives

Puspan. L. 104–168, title XIII, § 1311(span)(2), July 30, 1996, 110 Stat. 1478, provided that: “In the case of an organization operating on a cooperative basis which, before the date of the enactment of this Act [July 30, 1996], was determined by the Secretary of the Treasury or his delegate, to be described in section 501(c)(4) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code, the allocation or return of net margins or capital to the members of such organization in accordance with its incorporating statute and bylaws shall not be treated for purposes of such Code as the inurement of the net earnings of such organization to the benefit of any private shareholder or individual. The preceding sentence shall apply only if such statute and bylaws are substantially as such statute and bylaws were in existence on the date of the enactment of this Act.”

Application of Puspan. L. 100–647 to Section 501(c)(3) Bonds

Puspan. L. 100–647, title I, § 1013(i), Nov. 10, 1988, 102 Stat. 3559, provided that: “In accordance with section 1302 of the Reform Act [Puspan. L. 99–514, set out as a note below], each amendment and other provision of this Act [see Tables for classification] which applies to private activity bonds shall, unless otherwise expressly provided, apply to qualified 501(c)(3) bonds.”

Cancellation of Certain Debts Originated by or Guaranteed by United States Not Taken Into Account in Determining Tax Exempt Status of Certain Organizations

Puspan. L. 100–647, title VI, § 6203, Nov. 10, 1988, 102 Stat. 3730, provided that: “Subparagraph (A) of section 501(c)(12) of the 1986 Code shall be applied without taking into account any income attributable to the cancellation of any loan originally made or guaranteed by the United States (or any agency or instrumentality thereof) if such cancellation occurs after 1986 and before 1990.”

Plan Amendments Not Required Until January 1, 1989

For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Puspan. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Puspan. L. 99–514, as amended, set out as a note under section 401 of this title.

Treatment of Section 501(c)(3) Bonds

Puspan. L. 99–514, title XIII, § 1302, Oct. 22, 1986, 100 Stat. 2658, provided that: “Nothing in the treatment of section 501(c)(3) bonds as private activity bonds under the amendments made by this title [enacting sections 141 to 150 and 7703 of this title, amending sections 2, 22, 25, 32, 86, 103, 105, 152, 153, 163, 172, 194, 269A, 414, 879, 1016, 1398, 3402, 4701, 4940, 4942, 4988, 6362, 6652, and 7871 of this title, repealing sections 103A, 1391 to 1397, and 6039B of this title, enacting provisions set out as notes under sections 141 and 148 of this title, and amending provisions set out as a note under section 103A of this title] shall be construed as indicating how section 501(c)(3) bonds will be treated in future legislation, and any change in future legislation applicable to private activity bonds shall apply to section 501(c)(3) bonds only if expressly provided in such legislation.”

Tax-Exempt Status for Organization Introducing Into Public Use Technology Developed by Qualified Organizations

Puspan. L. 99–514, title XVI, § 1605, Oct. 22, 1986, 100 Stat. 2769, provided that:

“(a)In General.—For purposes of the Internal Revenue Code of 1986, an organization shall be treated as an organization organized and operated exclusively for charitable purposes if such organization—

“(1) is organized and operated exclusively—

“(A) to provide for (directly or by arranging for and supervising the performance by independent contractors)—

“(i) reviewing technology disclosures from qualified organizations,

“(ii) obtaining protection for such technology through patents, copyrights, or other means, and

“(iii) licensing, sale, or other exploitation of such technology,

“(B) to distribute the income therefrom, to such qualified organizations after paying expenses and other amounts as agreed with the originating qualified organizations, and

“(C) to make research grants to such qualified organizations,

“(2) regularly provides the services and research grants described in paragraph (1) exclusively to 1 or more qualified organizations, except that research grants may be made to such qualified organizations through an organization which is controlled by 1 or more organizations each of which—

“(A) is an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 or the income of which is excluded from taxation under section 115 of such Code, and

“(B) may be a recipient of the services or research grants described in paragraph (1),

“(3) derives at least 80 percent of its gross revenues from providing services to qualified organizations located in the same State as the State in which such organization has its principal office, and

“(4) was incorporated on July 20, 1981.

“(span)Qualified Organizations.—For purposes of this section, the term ‘qualified organization’ has the same meaning given to such term by subparagraphs (A) and (B) of section 41(e)(6) (as redesignated by section 231(d)(2)) of the Internal Revenue Code of 1986.

“(c)Treatment of Investment in a Technology Transfer Service Organization.—

“(1)In general.—A qualified investment made by a private foundation in an organization described in subparagraph (C) shall be treated as an investment described in section 4944(c) of the Internal Revenue Code of 1986 and shall not result in imposition of taxes under section 4941, 4943, 4944, 4945, or 507(c) of such Code.

“(2)Definitions.—For purposes of this subsection—

“(A)Qualified investment.—The term ‘qualified investment’ means a transfer by a private foundation of—

“(i) all of the patents, copyrights, know-how, and other technology or rights thereto of the private foundation, and

“(ii) investment assets, net receivables, and cash not exceeding $35,000,000,

to such organization in exchange for debt.

“(B)Private foundation.—The term ‘private foundation’ means—

“(i) a nonprofit corporation which was incorporated before 1913 which is described in sections 501(c)(3) and 509(a) of such Code, and which is exempt from taxation under section 501(a) of such Code, and

“(ii) the principal purposes of which are to support research by and to provide technology transfer services to organizations described in section 170(span)(1)(A) of such Code—

“(I) which are exempt from taxation under section 501(a) of such Code, or

“(II) the income of which is excluded from taxation under section 115 of such Code.

“(C)Technology transfer organization.—The term ‘technology transfer organization’ means a corporation established after the date of the enactment of this Act [Oct. 22, 1986]—

“(i) which is organized and operated to advance the public welfare through the provision of technology transfer services to research organizations,

“(ii) no part of the net earnings of which inures to the benefit of, or is distributable to, any private shareholder, individual, or entity, other than a private foundation or research organization,

“(iii) which does not participate in, or intervene in (including the publishing or distributing of statements) any political campaign on behalf of any candidate for public office,

“(iv) no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation, and

“(v) upon liquidation or dissolution of which all of its net assets can be distributed only to research organizations.

“(d)Effective Date.—This section shall take effect on the date of the enactment of this Act [Oct. 22, 1986].”

Applicability of 1976 Amendment to Certain Organizations

Puspan. L. 94–455, title XIII, § 1313(c), Oct. 4, 1976, 90 Stat. 1730, as amended by Puspan. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “An organization which (without regard to the amendments made by this section [amending this section and sections 170, 2055, and 2522 of this title]) is an organization described in section 170(c)(2)(B), 501(c)(3), 2055(a)(2), or 2522(a)(2) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] shall not be treated as an organization not so described as a result of the amendments made by this section.”

Tax Exemption for Certain Puerto Rican Pension, etc., Plans

Puspan. L. 93–406, title II, § 1022(i), Sept. 2, 1974, 88 Stat. 942, as amended by Puspan. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

“(1)General rule.—Effective for taxable years beginning after December 31, 1973, for purposes of section 501(a) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (relating to exemption from tax), any trust forming part of a pension, profit-sharing, or stock bonus plan all of the participants of which are residents of the Commonwealth of Puerto Rico shall be treated as an organization described in section 401(a) of such Code if such trust—

“(A) forms part of a pension, profit-sharing, or stock bonus plan, and

“(B) is exempt from income tax under the laws of the Commonwealth of Puerto Rico.

“(2)Election to have provisions of, and amendments made by, title ii of this act apply.—

“(A) If the administrator of a pension, profit-sharing, or stock bonus plan which is created or organized in Puerto Rico elects, at such time and in such manner as the Secretary of the Treasury may require, to have the provisions of this paragraph apply, for plan years beginning after the date of election any trust forming a part of such plan shall be treated as a trust created or organized in the United States for purposes of section 401(a) of the Internal Revenue Code of 1986.

“(B) An election under subparagraph (A), once made, is irrevocable.

“(C) This paragraph applies to plan years beginning after the date of enactment of this Act [Sept. 2, 1974]

“(D) The source of any distributions made under a plan which makes an election under this paragraph to participants and beneficiaries residing outside of the United States shall be determined, for purposes of subchapter N of chapter 1 of the Internal Revenue Code of 1986 by the Secretary of the Treasury in accordance with regulations prescribed by him. For purposes of this subparagraph the United States means the United States as defined in section 7701(a)(9) of the Internal Revenue Code of 1986.”

Exchanges for Sale of Poultry

Puspan. L. 89–44, title VIII, § 811, June 21, 1965, 79 Stat. 169, provided that certain corporations, associations, or organizations organized and operated exclusively for the purpose of providing an exchange for the sale of poultry growers of a particular locality shall be treated for purposes of this title as an exempt organization and that such exemption shall apply to taxable years beginning after Dec. 31, 1953, and ending after Aug. 16, 1954, which begin before Jan. 1, 1966.