Overview
Title
To amend the Internal Revenue Code of 1986 to exclude from tax-exempt status entities which provide goods or services to individuals who are not citizens or nationals of the United States.
ELI5 AI
The HARRIS Act of 2024 wants to change the rules so that groups helping people who are not from the U.S. would no longer get special tax breaks. This means organizations focusing on helping immigrants might have to pay more taxes.
Summary AI
H.R. 10067, also known as the "Helping Americans by Restricting Resources to Immigrant Services Act of 2024" or the "HARRIS Act of 2024," proposes an amendment to the Internal Revenue Code of 1986. This bill aims to remove tax-exempt status from organizations that primarily provide goods or services to people who are not U.S. citizens or lawful permanent residents. This change would apply to fiscal years beginning after the bill becomes law. The bill is championed by Representatives Gaetz, Biggs, Weber of Texas, and Boebert, and is currently under review by the Committee on Ways and Means.
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AnalysisAI
General Summary
The bill in question seeks to amend the Internal Revenue Code of 1986 by proposing a change that affects tax exemptions. Specifically, it aims at excluding entities from tax-exempt status if they provide goods or services primarily to individuals who are not citizens or nationals of the United States. The adjustments made by this bill would be applicable to tax years starting after the bill becomes law. It is officially named the "Helping Americans by Restricting Resources to Immigrant Services Act of 2024," or the "HARRIS Act of 2024."
Summary of Significant Issues
Multiple issues arise from the bill. Firstly, the term "substantial part" used to define the extent of services provided to non-citizens that would disqualify an entity from tax-exempt status is vague and open to interpretation. This lack of clarity could result in inconsistent application of the rules. Secondly, the bill does not elaborate on how such criteria would be monitored or enforced, raising questions about the practicality and oversight of its provisions.
Furthermore, the bill's title assumes a political stance that could be contentious, suggesting that restricting resources to immigrant services inherently benefits Americans. This implication may prompt public debate and lead to disagreements regarding the true impact on immigrant services. Finally, the bill does not specify which types of goods or services are subject to the tax exemption exclusion, which may cause confusion among organizations trying to comply with the new requirements.
Broad Public Impact
The proposed changes in the bill could have broad implications for many nonprofit and charitable organizations, particularly those involved in providing services to immigrants or international communities. These groups might need to reassess their operations and funding strategies to ensure compliance with the new tax rules, potentially resulting in reduced services for non-citizens and lawful permanent residents. Organizations that inadvertently fall under the domain of the ambiguous "substantial part" rule could face unexpected tax liabilities.
Impact on Specific Stakeholders
Certain stakeholders could experience the effects of this bill more profoundly than others. Humanitarian organizations serving immigrant communities, refugees, and international populations might see their missions complicated by the new tax rules, as their tax-exempt status could be jeopardized. This could reduce their ability to attract donations, as donors often seek tax deductions for their contributions.
Conversely, those who support stricter immigration policies might see this bill as a positive measure, ensuring that American resources predominantly benefit citizens and lawful permanent residents. They might argue that it aligns with the principles of prioritizing domestic interests.
However, the potential for confusion and legal challenges exists if the terms are not clearly defined, possibly leading to a contentious environment where organizations and lawmakers debate the fair application of the law. Consequently, a careful examination and revision of the bill's language and provisions might be necessary to address these concerns effectively.
Issues
The amendment could potentially discriminate against non-citizens, which raises significant ethical and legal concerns. This is due to the exclusion of entities from tax-exempt status if they provide goods or services to non-citizens, as stated in Section 2. This restriction may particularly affect humanitarian organizations that serve international communities or undocumented immigrants.
The phrase 'no substantial part of the activities' in Section 2 is ambiguous and open to interpretation, which could lead to inconsistent enforcement and application of the law. Clarity is necessary to define what constitutes a 'substantial part' to ensure fair application across different entities.
The bill's title, 'Helping Americans by Restricting Resources to Immigrant Services Act of 2024,' suggests a potentially contentious political stance, implying a negative impact on immigrant services. This could lead to public debate and necessitate clearer language or context within the bill to prevent misunderstandings, as noted in Section 1.
The bill does not specify how the exclusion criteria will be monitored or enforced, particularly concerning the tax-exempt status of entities. This absence of guidance in Section 2 raises concerns about the effectiveness and oversight of the proposed amendment.
The bill lacks specificity concerning which types of goods or services would be affected by the tax exemption exclusion in Section 2. This absence of detail may lead to confusion among entities regarding compliance.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of this act provides its official name, which is the “Helping Americans by Restricting Resources to Immigrant Services Act of 2024” or simply the “HARRIS Act of 2024.”
2. Exclusion from tax-exempt status of entities which provide goods or services to individuals who are not citizens or United States nationals Read Opens in new tab
Summary AI
This section changes the tax law to say that organizations can't have a tax-exempt status if they primarily provide goods or services to people who aren't U.S. citizens or permanent residents. This new rule will start applying to tax years after the law is passed.