Page:United States Statutes at Large Volume 90 Part 2.djvu/255

 90 STAT. 1723

PUBLIC LAW 94-455—OCT. 4, 1976 "CHAPTER 41—PUBLIC CHARITIES "Sec. 4911. Tax on excess expenditures to influence legislation.

"SEC. 4911. TAX ON EXCESS EXPENDITURES TO INFLUENCE LEGISLA- 26 USC 4911 TION. " (a) T A X IMPOSED.—

" (1) IN GENERAL.—There is hereby imposed on the excess lobbyi n g expenditures of any organization to which this section applies a tax equal to 25 percent of the amount of the excess lobbying expenditures for the taxable year. "(2)

ORGANIZATIONS TO W H I C H T H I S SECTION APPLIES.—This

section applies to any organization with respect to which an election under section 501(h) (relating to lobbying expenditures by Ante, p. 1720 public charities) is in effect for the taxable year. " (b) EXCESS LOBBYING EXPENDITURES. — For purposes of t h i s section, "Excess the term 'excess lobbying expenditures' means, for a taxable year, the lobbying expenditures."

greater of— " (1) the amount by which the lobbying expenditures made by the organization during the taxable year exceed the lobbying nontaxable amount for such organization for such taxable year, or " (2) the amount by which the grass roots expenditures made by the organization during the taxable year exceed the grass roots nontaxable amount for such organization for such taxable year. " (c) DEFINITIONS. — For purposes of this section— " (1) LOBBYING EXPENDITURES.—The term 'lobbying expendi-

tures' means expenditures for the purpose of influencing legislation (as defined in subsection (d)). " (2) LOBBYING NONTAXABLE AMOUNT.—The lobbying nontaxable

amount for any organization for any taxable year is the lesser of (A) $1,000,000 or (B) the amount determined under the following table: "If the proposed expenditures are— Not over $500,000

The lobbying nontaxable amount is— 20 percent of the exempt purpose expenditures. Over $500,000 but not over $1,000,000— $100,000, plus 15 percent of the excess of the exempt puriwse expenditures over $500,000. Over $1,000,000 but not over $1,500,000__ $175,000 plus 10 percent of the excess of the exempt purpose expenditures over $1,000,000. Over $1,500,000 $225,000 plus 5 percent of the excess of the exempt purpose expenditures over $1,500,000. "(3)

GRASS

ROOTS

EXPENDITURES.—The

term

'grass

roots

expenditures' means expenditures for the purpose of influencing legislation (as defined in subsection (d) without regard to paragraph (1)(B) thereof). " (4) GRASS ROOTS NONTAXABLE A M O U N T. — The g r a s s roots non-

taxable amount for any organization for any taxable year is 25 percent of the lobbying nontaxable amount (determined under paragraph (2)) for such organization for such taxable year. " (d) INFLUENCING

LEGISLATION.—

" (1) GENERAL RULE.—Except as otherwise provided in para- "Influencing g r a p h (2), for purposes of this section, the term 'influencing leg- legislation." islation' means— " (A) any a t t e m p t to influence any legislation through an attempt to affect the opinions of the general public or any segment thereof, and

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