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TITLE 26-INTERNAL REVENUE CODE 1960-Subsec. (a)(1). Pub. L. 86-667, § 2(a)(1), denied the exemption to an organization described in section 501(c)(17) if it has engaged in a prohibited transaction after Dec. 31, 1959. Subsec. (a)(2). Pub. L. 86-667, § 2(a)(2), included or- ganizations described in section 501(c)(17). Subsec. (b). Pub. L. 86-667, § 2(b), included organiza- tions described in section 501(c)(17). Subsec. d). Pub. L. 86-667, § 2(c), included organiza- tions described in section 501(c)(17). Subsec. (h). Pub. L. 86-667, § 2(d), included trusts de- scribed in section 501(c)(17). 1958-Subsec. (h). Pub. L. 85-866. § 30(a), added subsec. (h). Subsec. (i). Pub. L. 85-866, § 30(b), added subsec. (i). EnCTIVE DATE OF 1974 AMENDMENT Amendment by Pub. L. 93-406 effective on Jan. 1, 1975, but with provision for an election to be exercised by an organization so as to constitute a savings clause with reference to the amendment, see section 2003(c) of Pub. L. 93-406, set out as an Effective Date; Savings Provisions note under section 4975 of this title. EFFECTIvE DATE OF 1969 AMmfDMENT Amendment by section 101(J)(7)-(14) of Pub. L. 91- 172 to take effect on Jan. 1, 1970, see section 101(k)(1) of Pub. L. 91-172, set out as an Effective Date note under section 4940 of this title. Amendment by section 121(b)(6)(B) of Pub. L. 91- 172 applicable to taxable years beginning after Dec. 31, 1969, see section 121(g) of Pub. L. 91-172, set out as an Effective Date of 1969 Amendment note under sec- tion 511 of this title. EFFECTIVE DATE OF 1962 AMENDMENT Amendment by Pub. L. 87-792 applicable to taxable years beginning after Dec. 31, 1962, see section 8 of Pub. L. 87-792, set out as an Effective Date of 1962 Amendments note under section 37 of this title. EFFECTIVE DATE OF 1960 AmENDMENT Amendment by Pub. L. 86-667 applicable to taxable years beginning after Dec. 31, 1959, and in the case of loans, the amendments to this section made by Pub. L. 86-667 are applicable only to loans made, renewed, or continued after Dec. 31, 1959, see section 6 of Pub. L. 86-667, set out as an Effective Date of 1960 Amend- ments note under section 501 of this title. EFFECTIVE DATE OF 1958 AmEDmENT Section 30(c) of Pub. L. 85-866 provided that: "(1) In general.-Except as provided in paragraph (2). the amendment made by subsection (a) [adding subsec. (h) of this section] shall apply with respect to taxable years ending after March 15, 1956. The amendment made by subsection (b) [adding subsec. (I) of this section] shall apply with respect to taxable years ending after the date of the enactment of this Act [Sept. 2, 1958], but only with respect to periods after such date. "(2) Exceptions.-Nothing in subsection (a) [adding subsec. (h) of this section] shall be construed to make any transaction a prohibited transaction which, under announcements of the Internal Revenue Service made with respect to section 503(c)(1) of the Internal Rev- enue Code of 1954 [subsec. (c)(1) of this section] before the date of the enactment of this Act [Sept. 2, 1958], would not constitute a prohibited transaction. In the case of any bond, debenture, note, or certificate or other evidence of indebtedness acquired before the date of the enactment of this Act [Sept. 2, 1958], by a trust described in section 401(a) of such Code (section 401(a) of this title] which is held on such date, para. graphs (2) and (3) of section 503(h) of such Code [subsec. (h) of this title] shall be treated as satisfied if such requirements would have been satisfied if such obligation had been acquired on such date of enact- ment [Sept. 2,1958]." CROSS REFERENCES Denial of exemption, see section 504 of this title. Gifts and inheritances excluded from gross income, see section 102 of this title. Limitation on charitable deduction, see section 681 of this title. Personal holding company definition, organization described in this section as individual for purposes of, see section 542 of this title. Rules and regulations, see section 7805 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 501, 4975 of this title; title 29 section 1114. § 504. Status after organization ceases to qualify for exemption under section 501(c)(3) because of substantial lobbying (a) General rule An organization which- (1) was exempt (or was determined by the Secretary to be exempt) from taxation under section 501(a) by reason of being an organiza- tion described in section 501(c)(3), and (2) is not an organization described in sec- tion 501(c)(3) by reason of carrying on propa- ganda, or otherwise attempting, to influence legislation, shall not at any time thereafter be treated as an organization described in section 501(c)(4). (b) Regulations to prevent avoidance The Secretary shall prescribe such regula- tions as may be necessary or appropriate to pre- vent the avoidance of subsection (a), including regulations relating to a direct or indirect transfer of all or part of the assets of an organi- zation to an organization controlled (directly or indirectly) by the same person or persons who control the transferor organization. (c) Churches, etc. Subsection (a) shall not apply to any organi- zation which is a disqualified organization within the meaning of section 501(h)(5) (relat- ing to churches, etc.) for the taxable year im- mediately preceding the first taxable year for which such organization is described in para- graph (2) of subsection (a). (Added Pub. L. 94-455, title XIII, § 1307(a)(2), Oct. 4, 1976, 90 Stat. 1721.) PRIOR PROVISIONS A prior section 504, acts Aug. 16, 1954. ch. 736, 68A Stat. 168: Oct. 22, 1968, Pub. L. 90-630, § 6(a), 82 Stat. 1330, relating to denial of exemption, was repealed by Pub. L. 91-172, title I, § 101(J)(15), Dec. 30, 1969, 83 Stat. 527. For effective date of repeal, see section 101(k)(2)(B) of Pub. L. 91-172, set out as an Effective Date note under section 4040 of this title. RULES OF INTERPRETATION Section 1307(a)(3) of Pub. L. 94-455 provided that: "It is the intent of Congress that enactment of this section [enacting sections 501(h) and 504 of this title] is not to be regarded in any way as an approval or dis- approval of the decision of the Court of Appeals for the Tenth Circuit in Christian Echoes National Minis- try, Inc. versus United States, 470 F.2d 849 (1972), or of the reasoning in any of the opinions leading to that decision." § 504 Page 384