H.R. 5890: No Tax Exemptions For Terror Act (119th Congress) Bill Summary

This bill, titled the No Tax Exemptions For Terror Act, seeks to revise the tax treatment of certain organizations in relation to their nonprofit status under U.S. tax law. Here are the main components of the bill:

Purpose of the Bill

The primary aim of the bill is to ensure that the Council on American-Islamic Relations (CAIR) and similar organizations are not granted tax-exempt status as described under section 501(c)(3) of the Internal Revenue Code. This means that these organizations, if deemed to have connections to terrorism or terrorist organizations, could be subject to federal taxation.

Key Provisions

Tax Status Determination: The bill specifically targets the CAIR and other organizations that are found to have ties to terrorism, declaring that they shall not receive the same tax-exempt status as other charitable organizations.
Effective Date: The changes outlined in the bill would take effect for taxable years ending after the bill becomes law.

Implications

If enacted, this legislation would alter the financial landscape for the organizations in question by potentially increasing their tax liabilities. This could impact their funding, operations, and the services they provide, as they would no longer benefit from the tax exemptions that aid many nonprofit organizations in maintaining their activities.