H.R. 8314 Text - Reported in House - 118th Congress (2023-2024)

SEC. 2. Penalties with respect to contributions to political committees from certain tax exempt organizations that accept contributions from foreign nationals.

(a) In general.—Part I of subchapter B of chapter 68 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:
“SEC. 6720D. Contributions to political committees from certain tax exempt organizations that accept contributions from foreign nationals.

“(a) In general.—Any specified tax exempt organization that makes any disqualified political committee contribution shall pay a penalty equal to twice the amount of such contribution.

“(b) Disqualified political committee contribution.—For purposes of this section—

“(1) IN GENERAL.—The term ‘disqualified political committee contribution’ means, with respect to any organization described in section 501(c), any contribution made by such organization to a political committee (as defined in section 301 of the Federal Election Campaign Act of 1971 (52 U.S.C. 30101)) if such organization received, during any testing period, any contribution or gift (within the meaning of section 6033(b)(5)) from a foreign national (as defined in section 319(b) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30121(b))).

“(2) TESTING PERIOD.—The term ‘testing period’ means, with respect to any contribution by an organization described in section 501(c), the 8-year period ending on the date of such contribution, except that such period shall not include any period before the date of the enactment of this section.

“(c) Specified tax exempt organization.—For purposes of this section—

“(1) IN GENERAL.—The term ‘specified tax exempt organization’ means, with respect to any taxable year, any organization described in section 501(c) and exempt from tax under section 501(a) if—

“(A) the gross receipts of such organization for such taxable year equal or exceed $200,000, or

“(B) the assets of such organization (determined as of the close of such taxable year) equal or exceed $500,000.

“(2) COORDINATION WITH REVOCATION OF TAX EXEMPT STATUS BY REASON OF MAKING DISQUALIFIED POLITICAL COMMITTEE CONTRIBUTIONS.—An organization which is not exempt from tax under section 501(a) solely by reason of section 501(s) shall be treated for purposes of paragraph (1) of this subsection as exempt from tax under section 501(a) with respect to the application of this section to the first 3 disqualified political committee contributions of such organization.”.

(b) Revocation of exempt status upon third disqualified political committee contribution.—Section 501 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

“(s) Revocation of exempt status of certain organizations that accept contributions from foreign nationals and make contributions to political committees.—Any organization described in subsection (c) which makes more than 2 disqualified political committee contributions (as defined in section 6720D(b)) shall not be exempt from taxation under subsection (a) for any taxable year ending on or after the date of the third such contribution.”.

(c) Clerical amendment.—The table of sections for part I of subchapter B of chapter 68 of such Code is amended by adding at the end the following new item:

“Sec. 6720D. Contributions to political committees from certain tax exempt organizations that accept contributions from foreign nationals.”.

(d) Effective date.—The amendments made by this section shall apply with respect to contributions made on or after January 1, 2025, by organizations described in section 501(c) of the Internal Revenue Code of 1986.