No Tax Exemptions For Terror Act

# No Tax Exemptions For Terror Act (HR 5890) – Summary **What the Bill Would Do** This bill would prohibit organizations designated as terrorist entities by the U.S. government from receiving tax-exempt status. Currently, some organizations may retain their tax exemptions even after being labeled as terrorist groups by federal authorities. The bill aims to close this potential gap by automatically revoking or denying tax-exempt benefits to any organization on the government's official terrorist designation list. **Who It Affects and Key Provisions** The bill would primarily affect organizations that the U.S.

State Department or Treasury Department has formally designated as Foreign Terrorist Organizations (FTOs) or Specially Designated Terrorist Entities. Tax-exempt organizations—typically nonprofits, charities, and religious groups—would face automatic loss of their tax benefits if they receive such a designation. This could impact donors who claim charitable deductions and the organizations themselves by eliminating their exemption from federal income taxes. **Current Status** As of now, HR 5890 remains in committee, meaning it has not yet been debated or voted on by the full House of Representatives. The bill was introduced by Representative Chip Roy (R-Texas) in the current congressional session.