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H.R. 7244House118th Congress (2023-2025)In Committee

End Tax Breaks for Dark Money Act

To amend the Internal Revenue Code of 1986 to treat transfers of appreciated property to certain tax-exempt organizations the same as transfers of appreciated property to political organizations.

Sponsored by Judy ChuRep. Judy Chu (D-CA)
Introduced February 6, 2024

AI-Generated Summary

Updated January 20, 2026 at 2:32 PM UTC

The End Tax Breaks for Dark Money Act changes the tax code so that donations of appreciated property to certain tax‑exempt groups are treated the same as donations to political organizations. By expanding the definition of "specified organization" to include many 501(c)(4), (5), and (6) entities, the bill removes the tax deduction benefit for those transfers. This affects donors who give appreciated assets and the qualifying nonprofit organizations that receive them.

Key Provisions

  • Amends Section 84 of the Internal Revenue Code to replace the term “political organization” with “specified organization.”
  • Defines “specified organization” to include any political organization and any organization covered by paragraphs (4), (5), or (6) of Section 501(c) (e.g., certain social‑welfare, labor, and trade groups).
  • Updates the heading and table‑of‑sections reference for Section 84 to reflect the new term “specified organizations.”
  • Specifies that the changes apply to transfers made after the law’s enactment, affecting taxable years ending thereafter.

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

February 6, 2024

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HouseIntro Referral

Introduced in House

February 6, 2024

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

February 6, 2024

Bill Text

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Introduced in HouseIssued February 6, 2024

I

118th CONGRESS

2d Session

H. R. 7244

IN THE HOUSE OF REPRESENTATIVES

February 6, 2024

Ms. Chu (for herself, Ms. Schakowsky, Ms. Norton, Mr. Gomez, Mr. Raskin, Ms. Balint, Mr. Johnson of Georgia, Mrs. Ramirez, Mr. Davis of Illinois, Ms. Lee of Pennsylvania, Mr. García of Illinois, Mr. Grijalva, Ms. Tlaib, Mrs. Watson Coleman, and Ms. Williams of Georgia) 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 treat transfers of appreciated property to certain tax-exempt organizations the same as transfers of appreciated property to political organizations.

1.

Short title

This Act may be cited as the End Tax Breaks for Dark Money Act.

2.

Treatment of transfers of appreciated property to certain tax-exempt organizations

(a)

In general

Subsections (a) and (b) of section 84 of the Internal Revenue Code of 1986 are each amended by striking political organization each place it appears and inserting specified organization.

(b)

Specified organization

Section 84(c) of the Internal Revenue Code of 1986 is amended to read as follows:

(c)

Specified organization

For purposes of this section, the term specified organization means—

(1)

any political organization (as defined in section 527(e)(1)), and

(2)

any organization described in paragraph (4), (5), or (6) of section 501(c).

.

(c)

Clerical amendments

(1)

The heading of section 84 of the Internal Revenue Code of 1986 is amended by striking political and inserting specified.

(2)

The item relating to section 84 in the table of sections for part II of subchapter B of chapter 1 of such Code is amended to read as follows:

Sec. 84. Transfer of appreciated property to specified organizations.

.

(d)

Effective date

The amendments made by this section shall apply to transfer after the date of the enactment of this Act, in taxable years ending after such date.