501(c)(4) Reform Act of 2017

501(c)(4) Reform Act of 2017

This bill amends the Internal Revenue Code, with respect to the tax exemption under section 501(c)(4) for social welfare organizations and local associations of employees, to prohibit such entities from participating or intervening (including the publishing or distributing of statements) in any political campaign on behalf of, or in opposition to, any candidate for public office.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2338 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 2338

   To amend the Internal Revenue Code of 1986 to prohibit 501(c)(4) 
   entities from participating in, or intervening in (including the 
   publishing or distributing of statements), any political campaign.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 3, 2017

Ms. Michelle Lujan Grisham of New Mexico 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 prohibit 501(c)(4) 
   entities from participating in, or intervening in (including the 
   publishing or distributing of statements), any political campaign.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``501(c)(4) Reform Act of 2017''.

SEC. 2. 501(C)(4) ENTITIES PROHIBITED FROM PARTICIPATING IN, OR 
              INTERVENING IN (INCLUDING THE PUBLISHING OR DISTRIBUTING 
              OF STATEMENTS), POLITICAL CAMPAIGNS.

    (a) In General.--Section 501(c)(4) of the Internal Revenue Code of 
1986 is amended by adding at the end the following:
                    ``(C) Subparagraph (A) shall not apply to an entity 
                if the entity participates in, or intervenes in 
                (including the publishing or distributing of 
                statements), any political campaign on behalf of (or in 
                opposition to) any candidate for public office.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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