No Tax Exemptions For Terror Act
- Bill Number
- H.R. 5890
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-10-31: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-03-03T09:05:29Z
AI-Generated Summary
Summary of H.R. 5890: No Tax Exemptions For Terror Act
Purpose
This bill aims to prevent the Council on American-Islamic Relations (CAIR) and other organizations with alleged ties to terrorism from qualifying for tax-exempt status under section 501(c)(3) of the Internal Revenue Code. Section 501(c)(3) allows certain nonprofits, like charities or educational groups, to avoid federal income taxes and receive tax-deductible donations. The legislation seeks to ensure these organizations are subject to taxation, framing it as a measure against groups linked to terrorist activities.
Key Provisions
- Short Title (Section 1): The act is named the "No Tax Exemptions For Terror Act."
- Denial of Tax-Exempt Status (Section 2):
- Explicitly states that CAIR, or any other organization determined to have ties to terrorism or terrorist groups, cannot be treated as a 501(c)(3) organization.
- This denial applies regardless of other laws that might otherwise grant such status.
- Effective Date: The provision takes effect for taxable years ending after the date of enactment, meaning it would apply retroactively to ongoing tax periods post-enactment.
Significant Changes to Existing Law
- Overrides current IRS rules that allow organizations to qualify for 501(c)(3) status based on their charitable, educational, or religious purposes, as long as they do not engage in prohibited activities like supporting terrorism.
- Introduces a specific, categorical exclusion for CAIR and "similar" organizations with terrorism ties, shifting from a case-by-case IRS review to a blanket prohibition. This could eliminate the need for individual IRS investigations for affected groups.
Potential Impacts
- On Government Agencies: The IRS would need to enforce the denial of tax-exempt status, potentially increasing administrative workload to identify and monitor "similar organizations." This might involve coordination with national security agencies for determinations of terrorism ties.
- On Citizens: Donors to affected organizations would lose tax deductions for contributions, possibly reducing charitable giving to these groups. It could also affect members or beneficiaries of these organizations by limiting their funding and operations.
- On International Relations: Minimal direct impact, but it might influence perceptions of U.S. policy toward Muslim advocacy groups, potentially straining relations with countries or communities where CAIR has international ties or influence.
- Broader effects could include reduced resources for civil rights or advocacy work by targeted groups, indirectly impacting underserved communities.
Main Stakeholders Affected
- Primary Targets: CAIR and any organizations deemed to have "ties to terrorism," which could include other advocacy or religious groups focused on Islamic issues.
- Government Entities: IRS (for tax enforcement), Congress (for oversight), and possibly the Department of Justice or intelligence agencies (for defining terrorism ties).
- Citizens and Groups: Donors, volunteers, and beneficiaries of affected nonprofits; broader Muslim-American community, as it may chill participation in similar advocacy efforts.
- Taxpayers: Indirectly affected through changes in tax deductions and potential shifts in charitable funding patterns.
Notable Legal, Constitutional, or Political Implications
- Legal: The bill's use of "ties to terrorism" could be challenged for vagueness, as it lacks a clear definition or process for determinations, potentially violating due process under the Fifth Amendment by allowing arbitrary IRS actions.
- Constitutional: Raises First Amendment concerns regarding freedom of speech, religion, and association, as it targets specific organizations based on perceived affiliations, which might be seen as discriminatory or viewpoint-based restrictions on nonprofits.
- Political: Could polarize debates on national security versus civil liberties, with implications for how Congress addresses tax policy in politically sensitive areas like counterterrorism. If enacted, it might set a precedent for targeting other ideologically aligned groups, influencing future legislation on nonprofit oversight.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (19)
Rep. Fine, Randy [R-FL-6], Rep. Self, Keith [R-TX-3], Rep. Ogles, Andrew [R-TN-5], Rep. Higgins, Clay [R-LA-3], Rep. Donalds, Byron [R-FL-19], Rep. Biggs, Andy [R-AZ-5], Rep. Perry, Scott [R-PA-10], Rep. Harshbarger, Diana [R-TN-1], Rep. Miller, Mary E. [R-IL-15], Rep. Clyde, Andrew S. [R-GA-9], Rep. Burlison, Eric [R-MO-7], Rep. Moore, Barry [R-AL-1], Rep. Brecheen, Josh [R-OK-2], Rep. Boebert, Lauren [R-CO-4], Rep. Hunt, Wesley [R-TX-38], Rep. Jackson, Ronny [R-TX-13], Rep. Palmer, Gary J. [R-AL-6], Rep. Harris, Mark [R-NC-8], Rep. Fulcher, Russ [R-ID-1]
Recent Actions
- 2025-10-31: Referred to the House Committee on Ways and Means.
- 2025-10-31: Introduced in House
- 2025-10-31: Introduced in House
Bill Versions
- No Tax Exemptions For Terror Act — issued 2025-10-31 — PDF (2 pages)