House Ways and Means Committee Chair Kevin Brady introduced legislation that would reinstate a set of tax provisions that expired at the end of 2014 and extend them through the end of 2016.  It is expected that this two-year extension will only be moved forward if a permanent agreement cannot be reached.
The bill includes four extenders as well as several new provisions that would affect tax-exempt organizations:

  • An extension of the special rule for contributions of capital gain real property made for conservation purposes; the rule would also be modified with respect to certain contributions of land conveyed by the Alaska Native Claims Settlement Act
  • An extension of tax-free distributions from individual retirement plans for charitable purposes
  • An extension of the charitable deduction for contributions of food inventory; the deduction would also be modified to limit the amount of the deduction for C corporations to the lesser of 15% of taxable income or 15% of the aggregate net income from all trades or businesses from which contributions are made in a given year
  • An extension of the treatment of certain interest, annuity, royalty, or rent payments received by exempt organizations from controlled entities as derived from an unrelated trade or business
  • A requirement that the Treasury Department prescribe procedures under which an organization that claims to be described in section 501(c) may request an administrative appeal of an adverse determination of tax-exempt status, private foundation classification, and private operating foundation classification
  • A provision to enable organizations applying for tax-exempt status under section 501(c) and 501(d) to seek declaratory judgments with respect to adverse determinations of tax-exempt status (in addition to section 501(c)(3) organizations that already have this right)
  • A requirement for organizations to notify the Treasury Department of their intent to operate under section 501(c)(4) within 60 days of being established
  • A provision that transfers of money or other property to section 501(c)(4), (5), and (6) organizations made for the use of such organization are not subject to gift tax