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Sens. Cruz, Shaheen Introduce the Bipartisan Preserve Charities and Houses of Worship Act

Bill would repeal mandate requiring charities, churches, and traditionally tax-exempt organizations to pay federal taxes on employee fringe benefits

WASHINGTON, D.C. - U.S. Sens. Ted Cruz (R-Texas) and Jeanne Shaheen (D-N.H.) today introduced the bipartisan Preserve Charities and Houses of Worship Act, to repeal a mandate requiring charities, churches, and traditionally tax-exempt organizations to pay federal taxes on employee fringe benefits.

Read the full text of the bill here.

"While Americans have benefitted from the historic tax cuts passed by Congress in 2017, many charities, churches, and other tax-exempt organizations across the country have been required to pay federal taxes on employee fringe benefits," Sen. Cruz said. "These organizations help people in need, serve our families, and make our communities stronger. This bipartisan bill would repeal this requirement and enable charitable organizations to distribute funds and donations for their intended purpose rather than for paying taxes to the federal government. I am grateful for Sen. Shaheen's support, and I am hopeful my colleagues in Congress will work together to restore tax exemptions for America's charitable organizations."

"Places of worship and charities shouldn't bear the burden of a mistake in the 2017 tax bill, which is precisely why this common-sense legislation to right that wrong is urgently needed," said Shaheen. "This bipartisan bill would help non-profit organizations and faith groups dedicate more of their limited resources to their missions of service for our communities, rather than calculating and paying new taxes that should never have been imposed in the first place. I'm glad to partner with Senator Cruz on this effort and I urge members on both sides of the aisle to join us in moving this legislation forward."

Sen. Cruz introduced a similar bill in 2018.

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Related Issues

  1. Tax Reform