H.R. 1223House116th Congress (2019-2021)In Committee

Stop the Tax Hike on Charities and Places of Worship Act

AI-Generated Summary

Updated April 14, 2026 at 1:49 AM UTC

The Stop the Tax Hike on Charities and Places of Worship Act would remove a provision that raises the unrelated business taxable income (UBTI) of tax‑exempt organizations—such as charities and churches—by the amount of certain fringe‑benefit expenses. At the same time, the bill would raise the federal corporate income tax rate from 21% to 21.03% for future tax years. The changes affect nonprofit entities that earn unrelated business income and all for‑profit corporations that pay the corporate tax.

Key Provisions

Repeals paragraph (7) of IRC §512(a), eliminating the increase in UBTI caused by certain fringe‑benefit expenses for charities and places of worship.
Increases the corporate tax rate by 0.03 percentage points, changing it from 21% to 21.03% for taxable years beginning after the law’s enactment.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

February 14, 2019

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HouseIntro Referral

Introduced in House

February 14, 2019

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

February 14, 2019

Bill Text

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Introduced in HouseIssued February 14, 2019

116th CONGRESS

1st Session

H. R. 1223

IN THE HOUSE OF REPRESENTATIVES

February 14, 2019

Mr. Clyburn (for himself, Ms. Clarke of New York, Mr. Suozzi, Mr. Horsford, Ms. Hill of California, Mrs. Beatty, Mr. Bishop of Georgia, Mr. Brown of Maryland, Ms. Brownley of California, Mr. Butterfield, Mr. Clay, Mr. Cleaver, Mr. Cummings, Mrs. Demings, Ms. Fudge, Mr. Hastings, Ms. Johnson of Texas, Mrs. Lawrence, Ms. Lee of California, Mr. McEachin, Ms. Moore, Ms. Norton, Ms. Plaskett, Mr. Richmond, Mr. Rush, Mr. David Scott of Georgia, Mr. Thompson of Mississippi, Ms. Underwood, Mrs. Watson Coleman, Ms. Wilson of Florida, and Mr. Cohen) 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 repeal the increase in unrelated business taxable income by amount of certain fringe benefit expenses.

Short title

This Act may be cited as the Stop the Tax Hike on Charities and Places of Worship Act.

Repeal of increase of unrelated business taxable income by amount of certain fringe benefits

(a)

In general

Section 512(a) of the Internal Revenue Code of 1986 is amended by striking paragraph (7).

(b)

Effective date

The amendment made by this section shall take effect as if included in section 13703 of Public Law 115–97.

Increase in tax imposed on corporations

(a)

In general

Section 11(b) of the Internal Revenue Code of 1986 is amended by striking 21 percent and inserting 21.03 percent.

(b)

Effective date

The amendment made by this section shall apply with respect to taxable years beginning after the date of the enactment of this Act.