[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4156 Enrolled Bill (ENR)]

        H.R.4156

                      One Hundred Seventh Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

         Begun and held at the City of Washington on Wednesday,
          the twenty-third day of January, two thousand and two


                                 An Act


 
To amend the Internal Revenue Code of 1986 to clarify that the parsonage 
allowance exclusion is limited to the fair rental value of the property.

    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 ``Clergy Housing Allowance 
Clarification Act of 2002''.

SEC. 2. CLARIFICATION OF PARSONAGE ALLOWANCE EXCLUSION.

    (a) In General.--Section 107 of the Internal Revenue Code of 1986 
is amended by inserting before the period at the end of paragraph (2) 
``and to the extent such allowance does not exceed the fair rental 
value of the home, including furnishings and appurtenances such as a 
garage, plus the cost of utilities''.
    (b) Effective Date.--
        (1) In general.--The amendment made by this section shall apply 
    to taxable years beginning after December 31, 2001.
        (2) Returns positions.--The amendment made by this section also 
    shall apply to any taxable year beginning before January 1, 2002, 
    for which the taxpayer--
            (A) on a return filed before April 17, 2002, limited the 
        exclusion under section 107 of the Internal Revenue Code of 
        1986 as provided in such amendment, or
            (B) filed a return after April 16, 2002.
        (3) Other years before 2002.--Except as provided in paragraph 
    (2), notwithstanding any prior regulation, revenue ruling, or other 
    guidance issued by the Internal Revenue Service, no person shall be 
    subject to the limitations added to section 107 of such Code by 
    this Act for any taxable year beginning before January 1, 2002.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.