Page:United States Statutes at Large Volume 90 Part 2.djvu/258

 90 STAT. 1726

PUBLIC LAW 94-455—OCT. 4, 1976 tion (e)(1)(C) shall be applied as if such affiliated group were one organization. " (2) DEFINITION OF AFFILIATION.—For purposes of paragraph

Regulations.

Ante, p. 1720.

(1), two organizations are members of an affiliated group of organizations but only if— "(A) the governing instrument of one such organization requires it to be bound by decisions of the other organization on legislative issues, or "(B) the governing board of one such organization includes persons who— "(i) are specifically designated representatives of another such organization or are members of the governing board, officers, or paid executive staff members of such other organization, and " (ii) by aggregating their votes, have sufficient voting power to cause or prevent action on legislative issues by the first such organization. "(3) DrFFERENT TAXABLE YEARS.—If members of an affiliated group of organizations have different taxable years, their expenditures shall be computed for purposes of this section in a manner to be prescribed by regulations promulgated by the Secretary. "(4) LIMITED CONTROL.—If two or more organizations are members of an affiliated group of organizations (as defined in paragraph (2) without regard to subparagraph (B) thereof), no two members of such affiliated group are affiliated (as defined in paragraph (2) without regard to subparagraph (A) thereof), and the governing instrument of no such organization requires it to be bound by decisions of any of the other such organizations on legislative issues other than as to action with respect to Acts, bills, resolutions, or similar items by the Congress, then— " (A) in the case of any organization whose decisions bind one or more members of such affiliated group, directly or indirectly, the determination as to whether such organization has paid or incurred excess lobbying expenditures and the determination as to whether such organization has exceeded f]^Q expenditure limits of section 501(h)(1) shall be made as though such organization has paid or incurred those amounts paid or incurred by such members of such affiliated group to influence legislation with respect to Acts, bills, resolutions, or similar items by the Congress, and "(B) in the case of any organization to which subparagraph (A) does not apply, but which is a member of such affiliated group, the determination as to whether such organization has paid or incurred excess lobbying expenditures and the determination as to whether such organization has exceeded the expenditure limits of section 501(h)(1) shall be made as though such organization is not a member of such affiliated group.", (c) DISALLOWING OF DEDUCTION FOR CONTRIBUTION To INFLUENCE

26 USC 170.

LEGISLATION.—Section 170(f) (relating to disallowance of charitable contribution deductions in certain cases) is amended by striking out paragraph (6) and inserting in lieu thereof the following: " (6) DEDUCTIONS FOR OUT-OF-POCKET EXPENDITURES.—No deduction shall be allowed under this section for an out-of-pocket expenditure made by any person on behalf of an organization described in subsection (c) (other than an organization described in section 501(h)(5) (relating to churches, etc.)) if the expendi-

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