To amend the Internal Revenue Code of 1986 to exempt qualified religious institutions from the excise tax on investment income.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9353 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 9353

    To amend the Internal Revenue Code of 1986 to exempt qualified 
    religious institutions from the excise tax on investment income.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 18, 2026

 Mr. Kelly of Pennsylvania (for himself and Mr. Boyle of Pennsylvania) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL

 
    To amend the Internal Revenue Code of 1986 to exempt qualified 
    religious institutions from the excise tax on investment income.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXEMPTION OF QUALIFIED RELIGIOUS INSTITUTIONS FROM EXCISE 
              TAX ON INVESTMENT INCOME.

    (a) In General.--Section 4968(c) of the Internal Revenue Code of 
1986 is amended by striking ``and'' at the end of paragraph (3), by 
striking the period at the end of paragraph (4) and inserting ``, 
and'', and by adding at the end the following new paragraph:
            ``(5) which is not a qualified religious institution.''.
    (b) Qualified Religious Institution.--Section 4968 of such Code is 
amended by redesignating subsection (h) as subsection (i) and by 
inserting after subsection (g) the following new subsection:
    ``(h) Qualified Religious Institution.--For purposes of subsection 
(c)(5), the term `qualified religious institution' means any 
institution--
            ``(1) which was established after July 4, 1776,
            ``(2) which was established by or in association with an 
        organization described in section 170(b)(1)(A)(i),
            ``(3) which--
                    ``(A) has at least 25 percent of the members of its 
                highest governing body as being either--
                            ``(i) appointed or approved by such 
                        organization, or
                            ``(ii) required under the governing 
                        documents of the institution to be clerical 
                        members of such organization,
                    ``(B) is party to a formal written agreement with 
                such organization that expressly acknowledges the 
                institution's historical and ongoing relationship with 
                the organization, and sets forth shared commitments 
                relating to institutional mission, values, or 
                engagement with the religious traditions of the 
                organization, or
                    ``(C) is formally designated as a religious 
                institution by the governing body of such organization 
                based on an evaluation of the institution's alignment 
                with the organization's religious identity, values, or 
                educational mission, and
            ``(4) which maintains a published institutional mission 
        which is approved by the governing body of such institution and 
        which includes, refers to, or is predicated upon religious 
        tenets, beliefs, or teachings.''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply to taxable years beginning after December 31, 2025.
    (d) Regulatory Deadline.--Not later than December 31, 2026, the 
Secretary of the Treasury shall prescribe such regulations or other 
guidance as may be necessary or appropriate to carry out the purposes 
of the amendments made by subsections (a) and (b).
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