PUBLIC LAW 99-514—OCT. 22, 1986
100 STAT. 2769
(3) by adding at the end thereof the following new clause: "(iii) an organization described in section 501(c)(25)." (c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 1986. SEC.
1604. EXCEPTION TO MEMBERSHIP ORGANIZATION DEDUCTION RULES.
(a) IN GENERAL.—Subsection 0?) of section 277 (relating to deductions incurred by certain membership organizations in transactions with members) is amended— (1) by striking out "or" at the end of paragraph (2), (2) by striking out the period at the end of paragraph (3) and inserting in lieu thereof ", or", and (3) by adding at the end thereof the following new paragraph: "(4) which is engaged primarily in the gathering and distribution of news to its members for publication." (b) EFFECTIVE DATE.—The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act. SEC. 1605. TAX-EXEMPT STATUS FOR AN ORGANIZATION INTRODUCING INTO PUBLIC USE TECHNOLOGY DEVELOPED BY QUALIFIED ORGANIZATIONS.
(a) IN GENERAL.—For purposes of the Internal Revenue Code of 1986, an organization shall be treated as an organization organized and operated exclusively for charitable purposes if such organization— (1) is organized and operated exclusively— (A) to provide for (directly or by arranging for and supervising the performance by independent contractors)— (i) reviewing technology disclosures from qualified organizations, (ii) obtaining protection for such technology through tfii if patents, copyrights, or other means, and (iii) licensing, sale, or other exploitation of such technology, (B) to distribute the income therefrom, to such qualified organizations after paying expenses and other amounts as agreed with the originating qualified organizations, and (C) to make research grants to such qualified organizations, (2) regularly provides the services and research grants described in paragraph (1) exclusively to 1 or more qualified organizations, except that research grants may be made to such qualified organizations through an organization which is controlled by 1 or more organizations each of which— (A) is an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 or the income of which is excluded from taxation under section 115 of such Code, and (B) may be a recipient of the services or research grants described in paragraph (1), (3) derives at least 80 percent of its gross revenues from providing services to qualified organizations located in the same State as the State in which such organization has its principal office, and (4) was incorporated on July 20, 1981.
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