S. 1032 - Revitalizing Underdeveloped Rural Areas and Lands (RURAL) Act

116TH CONGRESS
1ST SESSION

S. 1032

To amend the Internal Revenue Code of 1986 to modify
the definition of income for purposes of determining
the tax-exempt status of certain corporations.

IN THE SENATE OF THE UNITED STATES

APRIL 4, 2019

Mr. PORTMAN (for himself and Ms. SMITH) introduced
the following bill; which was read twice and referred
to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to modify the definition of income for purposes of determining the tax-exempt status of certain corporations.

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

SECTION 1. SHORT TITLE.

This Act may be cited as the "Revitalizing Underdeveloped Rural Areas and Lands (RURAL) Act".

SEC. 2. MODIFICATION OF INCOME FOR PURPOSES OF DETERMINING TAX-EXEMPT STATUS OF CERTAIN ORGANIZATIONS.

(a) IN GENERAL. — Section 501(c)(12) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

"(J) In the case of a mutual or cooperative telephone or electric company described in this paragraph, subparagraph (A) shall be applied without taking into account any income received or accrued from —

"(i) any grant, contribution, or assistance provided pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act or any similar grant, contribution, or assistance by any local, State, or regional governmental entity for the purpose of relief, recovery, or restoration from, or preparation for, a disaster or emergency, or

"(ii) any grant or contribution by any governmental entity (other than a contribution in aid of construction or any other contribution as a customer or potential customer) the purpose of which is substantially related to providing, constructing, restoring, or relocating electric, communication, broadband, internet, or other utility facilities or services.".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to taxable years beginning after December 31, 2017.