[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4881 Introduced in Senate (IS)]
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119th CONGRESS
2d Session
S. 4881
To amend the Internal Revenue Code of 1986 to modify the matching funds
requirement for grants provided to low-income taxpayer clinics.
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IN THE SENATE OF THE UNITED STATES
June 24, 2026
Mr. Welch (for himself and Mr. Marshall) introduced the following bill;
which was read twice and referred to the Committee on Finance
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A BILL
To amend the Internal Revenue Code of 1986 to modify the matching funds
requirement for grants provided to low-income taxpayer clinics.
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 ``Unlocking Low-Income Taxpayer Clinic
Funding Act''.
SEC. 2. LOW-INCOME TAXPAYER CLINIC FUNDING UNLOCKED.
(a) Matching Funds.--Paragraph (5) of section 7526(c) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(5) Requirement of matching funds.--
``(A) In general.--With respect to any grant
provided to a low-income taxpayer clinic under this
section, such clinic shall provide matching funds equal
to the applicable percentage of the amount of such
grant.
``(B) Matching funds.--
``(i) In general.--For purposes of this
paragraph, the term `matching funds' may
include--
``(I) the salary (including fringe
benefits) of individuals performing
services for the low-income taxpayer
clinic, and
``(II) the cost of equipment used
in the low-income taxpayer clinic.
``(ii) Exclusion.--For purposes of this
paragraph, the term `matching funds' shall not
include any indirect expenses, such as general
overhead of the institution sponsoring the low-
income taxpayer clinic.
``(C) Applicable percentage.--For purposes of
subparagraph (A), the applicable percentage shall be
100 percent, except that the Secretary may establish a
lower percentage (not below 25 percent) if the
Secretary determines that such percentage would expand
the coverage of the low-income taxpayer clinic to
additional taxpayers.''.
(b) Technical Amendments.--Section 7526(c) of the Internal Revenue
Code of 1986, as amended by subsection (a), is further amended--
(1) by striking paragraphs (1) and (2), and
(2) by redesignating paragraphs (3) through (6) as
paragraphs (1) through (4).
(c) Effective Date.--The amendments made by this section shall
apply to calendar years beginning after the date of enactment of this
Act.
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