To amend the Internal Revenue Code of 1986 to extend to church plans the exemption from unrelated business tax for debt-financed property held by pension plans.

July 28, 2005

Mr. RAMSTAD (for himself and Mr. POMEROY) introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to extend to church plans the exemption from unrelated business tax for debt-financed property held by pension plans.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Church Plan Investment Fairness Act of 2005'.

SEC. 2. EXEMPTION FOR INCOME FROM LEVERAGED REAL ESTATE HELD BY CHURCH PLANS.

(a) In General- Section 514(c)(9)(C) of the Internal Revenue Code of 1986 is amended by striking `or' after clause (ii), by striking the period at the end of clause (iii) and inserting `; or', and by inserting after clause (iii) the following:

`(iv) a retirement income account described in section 403(b)(9).'.

(b) Effective Date- The amendment made by subsection (a) shall apply to taxable years beginning on or after the date of enactment of this Act.

END