To amend the Internal Revenue Code of 1986 to exempt qualified religious institutions from the excise tax on investment income.
Sponsored By: Representative Kelly, Mike [R-PA-16]
Introduced
Summary
This bill would exempt qualified religious institutions from the Section 4968 excise tax on investment income. It would add a statutory definition that covers institutions established after July 4, 1776 and created by or in association with an organization described in section 170(b)(1)(A)(i). To qualify an institution must meet governance ties, enter a formal written agreement, or be formally designated by that organization. It must also have a published mission approved by its governing body that references religious tenets. The exemption would apply to taxable years beginning after December 31, 2025 and the Secretary of the Treasury would have to issue regulations or guidance by December 31, 2026.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Investment tax break for religious institutions
This bill would exempt certain nonprofit religious institutions from the federal excise tax on investment income. To qualify, an institution would have to have been established after July 4, 1776 and be established by or in association with an organization described in section 170(b)(1)(A)(i). It would also have to meet at least one of three governance or relationship tests and have a published mission approved by its governing body that includes religious tenets, beliefs, or teachings. The exemption would apply to taxable years beginning after December 31, 2025. The Treasury Secretary would have to issue regulations or other guidance to implement the exemption by December 31, 2026.
Sponsors & CoSponsors
Sponsor
Kelly, Mike [R-PA-16]
PA • R
Cosponsors
Rep. Boyle, Brendan F. [D-PA-2]
PA • D
Sponsored 6/18/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov