H.R. 9722: Fair Treatment of Religious Organizations Act of 2026

This bill would change the federal tax code rules for deciding whether an organization qualifies as religious for tax-exempt status.

What it would do

• It would add a new rule to Section 501 of the Internal Revenue Code, which covers tax-exempt organizations.
• For tax purposes, a religious belief or practice about marriage, sexuality, or gender identity could not be treated as inconsistent with law or public policy just because it conflicts with some laws or public views.
• It would also say that a belief can still count as a religious belief even if that belief is not required by or central to a religion’s broader teachings.

Practical effect

The bill is intended to make it easier for some religious organizations to keep or obtain tax-exempt status when their beliefs or practices involve marriage, sexuality, or gender identity. It would limit the extent to which the IRS could deny religious status based on those beliefs being seen as contrary to public policy, or based on arguments that the belief is not essential to the religion.

When it would apply

The change would apply to taxable years beginning after December 31, 2025.

Relevant Companies

None found