S. 3743Senate118th Congress (2023-2025)In Committee

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.

AI-Generated Summary

Updated January 20, 2026 at 2:33 PM UTC

The bill changes the tax code so that donations of appreciated property to certain tax‑exempt groups are treated the same as donations to political organizations. It expands the definition of “specified organization” to include political groups and specific types of 501(c) organizations. The change applies to transfers made after the law is enacted and affects donors and the qualifying nonprofit groups that receive such property.

Key Provisions

Amends IRC §84 to replace the term “political organization” with “specified organization.”
Defines “specified organization” to include any political organization under §527(e)(1) and any organization listed in paragraphs (4), (5), or (6) of §501(c).
Updates the heading and table‑of‑contents reference for §84 to reflect the new term “specified organizations.”
Sets the effective date to apply to transfers in taxable years ending after the enactment date.

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 6, 2024

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SenateIntro Referral

Introduced in Senate

February 6, 2024

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

February 6, 2024

Bill Text

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Introduced in SenateIssued February 6, 2024

118th CONGRESS

2d Session

S. 3743

IN THE SENATE OF THE UNITED STATES

February 6, 2024

Mr. Whitehouse (for himself, Mr. Schatz, Ms. Smith, Ms. Cortez Masto, Mr. Van Hollen, Ms. Warren, Mr. Merkley, Ms. Baldwin, Ms. Butler, and Mr. Welch) 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 treat transfers of appreciated property to certain tax-exempt organizations the same as transfers of appreciated property to political organizations.

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.