This bill adds a new rule to the tax code saying that when the government decides if an organization has a "religious purpose" for tax-exempt status, it must not consider the organization's religious beliefs or practices about marriage, sexuality, or gender identity. It also says a belief is still a religious belief even if it is not central to a formal religion.
The bill also bars federal agencies from disadvantaging or discriminating against certain religious employers (religious corporations, associations, religious schools, or societies) that apply for or receive federal grants, loans, contracts, or other financial help, when those employers take employment actions that are consistent with the right to hire people who share their religious beliefs and follow their religious standards. The bill names existing statutory exemptions and defenses (from the Civil Rights Act, the Americans with Disabilities Act, the Religious Freedom Restoration Act, and the First Amendment) as examples of the protections it refers to.
The tax provision takes effect for taxable years beginning after December 31, 2025.
No publicly available information.
The bill’s stated purpose is to ensure "fair treatment" of certain charitable and religious organizations and recipients of federal financial assistance. Supporters would say the bill protects religious organizations from being disqualified or disadvantaged because of their beliefs about marriage, sexuality, or gender identity and safeguards the ability of religious employers to hire according to their religious standards.
No publicly available information.