[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1754 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1754

 To amend the Internal Revenue Code of 1986 to provide that ancestors 
 and lineal descendants of past or present members of the Armed Forces 
    shall be taken into account in determining whether a veterans' 
                    organization is exempt from tax.


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                    IN THE HOUSE OF REPRESENTATIVES

                              May 8, 2001

 Mr. Houghton (for himself, Mr. Rangel, Mr. Sweeney, Mr. Ehrlich, Mr. 
    Sam Johnson of Texas, Mr. Oxley, and Mr. McHugh) 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 provide that ancestors 
 and lineal descendants of past or present members of the Armed Forces 
    shall be taken into account in determining whether a veterans' 
                    organization is exempt from tax.

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

SECTION 1. MODIFICATION OF MEMBERSHIP REQUIREMENT FOR EXEMPTION FROM 
              TAX FOR VETERANS' ORGANIZATIONS.

    (a) In General.--Subparagraph (B) of section 501(c)(19) of the 
Internal Revenue Code of 1986 (relating to list of exempt 
organizations) is amended by striking ``or widowers'' and inserting ``, 
widowers, or ancestors or lineal descendants''.
    (b) Modification Not To Apply in Determining Unrelated Business 
Taxable Income.--Paragraph (4) of section 512(a) of such Code is 
amended by striking ``members of such organization or their 
dependents'' and inserting ``members of such organization who are past 
or present members of the Armed Forces of the United States or who are 
dependents of such past or present members''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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