S. 501 – Stop the Tax Hike on Charities and Places of Worship Act

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Updated April 14, 2026 at 1:59 AM UTC

The Stop the Tax Hike on Charities and Places of Worship Act aims to undo a recent tax change that increased unrelated business taxable income for charities and places of worship because of certain fringe‑benefit expenses. At the same time, the bill raises the federal corporate income tax rate from 21% to 22%. The changes affect nonprofit organizations that receive unrelated business income and all corporations subject to the federal income tax.

Key Provisions

Repeals the addition of certain fringe‑benefit expenses to unrelated business taxable income by removing paragraph (7) of Section 512(a) of the Internal Revenue Code.
Increases the corporate income tax rate by changing the rate in Section 11(b) from 21 percent to 22 percent, effective for taxable years beginning after the law’s enactment.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

February 14, 2019

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SenateIntro Referral

Introduced in Senate

February 14, 2019

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

February 14, 2019

Bill Text

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Introduced in SenateIssued February 14, 2019

II

116th CONGRESS

1st Session

S. 501

IN THE SENATE OF THE UNITED STATES

February 14, 2019

Mr. Brown 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 repeal the increase in unrelated business taxable income by amount of certain fringe benefit expenses.

1.

Short title

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

2.

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.

3.

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 22 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.