[107th Congress Public Law 181]
[From the U.S. Government Printing Office]


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[DOCID: f:publ181.107]


[[Page 116 STAT. 583]]

Public Law 107-181
107th Congress

                                 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. <<NOTE: May 20, 2002 -  [H.R. 4156]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Clergy Housing Allowance 
Clarification Act of 2002. 26 USC 1 note.>> 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 <<NOTE: 26 USC 107.>>  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.-- <<NOTE: Applicability. 26 USC 107 note.>> 
            (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.

    Approved May 20, 2002.

LEGISLATIVE HISTORY--H.R. 4156:
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CONGRESSIONAL RECORD, Vol. 148 (2002):
            Apr. 16, considered and passed House.
            May 2, considered and passed Senate.

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