H.R. 2147 - Revitalizing Underdeveloped Rural Areas and Lands (RURAL) Act of 2019

116TH CONGRESS
1ST SESSION

H.R. 2147

To amend the Internal Revenue Code of 1986 to modify the definition of income
for purposes of determining the tax-exempt status of certain mutual or
cooperative telephone or electric companies.

IN THE HOUSE OF REPRESENTATIVES

APRIL 9, 2019

Ms. SEWELL of Alabama (for herself and Mr. SMITH of Nebraska)
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 modify the definition of income for purposes of determining the tax-exempt status of certain mutual or cooperative telephone or electric companies.

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 Act of 2019" or as the "RURAL Act of 2019".

SEC. 2. MODIFICATION OF INCOME FOR PURPOSES OF DETERMINING TAX-EXEMPT STATUS OF CERTAIN MUTUAL OR COOPERATIVE TELEPHONE OR ELECTRIC COMPANIES.

(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.