S.Amdt. 2843

As your legislative analyst, let's break down what Mr. Young is trying to do with this amendment. Plain and simple, this change aims to exempt qualified religious institutions from a specific section of the tax code, section 4968(c).

To make sure an institution qualifies as a religious institution under this amendment, it has to meet a few strict rules spelled out in the text:

• It must have been established after July 4, 1776.
• It must have been established by or associated with a specific type of organization described in section 170(b)(1)(A)(i).
• It must meet specific governance, formal agreement, or formal designation requirements relating to that associated organization.
• It must maintain a published institutional mission approved by its governing body that includes, refers to, or is predicated upon religious tenets, beliefs, or teachings.

Accountability and Timeline

The text also requires the Secretary to issue necessary regulations or guidance to carry out these purposes no later than December 31, 2025.

If this passes, these rules will apply to taxable years beginning after December 31, 2025. We need to watch how our elected officials handle these tax exemptions to ensure they are being transparent with the people they represent.