To amend the Internal Revenue Code of 1986 to exempt qualified religious institutions from the excise tax on investment income.

119th Congress Introduced by Brendan Boyle and 1 co-sponsor

HR 9353 would exempt qualified religious institutions from the excise tax on their investment income.

Introduced in House

Summary of HR 9353 (119th Congress)

Purpose and intent

HR 9353 proposes to amend the Internal Revenue Code of 1986 to exempt qualified religious institutions from the excise tax on investment income. The bill’s stated aim is to relieve qualifying religious organizations from a specific tax on earnings from investments, aligning their tax treatment with the broader tax-exempt status typically enjoyed by such institutions.

Key provisions and changes

Exemption from investment income excise tax for qualified religious institutions: The core change would remove the excise tax that currently applies to investment income (such as interest, dividends, rents, royalties, and gains) earned by certain religious organizations.

Scope of exemption: The exemption would apply to “qualified religious institutions.” While the bill text is not provided here, such terms generally refer to churches, congregations, and other religious organizations that satisfy requirements under the Internal Revenue Code (e.g., organizations that are tax-exempt under section 501(c)(3) and that meet specific criteria related to religious purposes and operations).

Definitions and criteria: The legislation would establish or reference definitions to determine which religious institutions qualify for the exemption, potentially including qualifications related to charitable, religious, or educational activities, and organizational structure.

Effective date and transitional provisions: The bill would specify when the exemption would take effect (e.g., for tax years beginning after a certain date) and may include provisions to transition existing tax positions or periods.

Who would be affected

Qualified religious institutions: Eligible churches and other religious organizations that meet the defined criteria would no longer owe the excise tax on their investment income.

Related stakeholders: Tax filers and preparers for qualifying religious entities, the Internal Revenue Service (IRS) for administration and enforcement, and entities involved in the governance and funding of religious organizations could experience changes in compliance and reporting requirements.

Procedural and timeline aspects

Introduced and referred: The bill was introduced in the House and referred to the House Committee on Ways and Means on June 18, 2026.

Sponsor involvement: The bill lists co-sponsors Mike Kelly and Brendan Boyle, indicating bipartisan interest in the proposal.

Next steps: If the committee approves the bill, it would typically move to the full House for consideration, potential amendments, passage, and then onward to the Senate (where it would face potential companion legislation or differences).

Observations and considerations

The proposed exemption would reduce federal revenue by eliminating the excise tax on investment income for the designated religious institutions, depending on the scope of “qualified” status and applicability.

The policy impact would hinge on the precise statutory definitions, compliance rules, and any accompanying provisions (e.g., reporting, governance standards, or sunset clauses) that accompany the exemption.

Note: This summary is based on the bill’s title and basic action history. For a complete understanding, the full bill text would need to be consulted to confirm definitions, eligibility criteria, transition rules, and any ancillary provisions.