An Act to amend the Internal Revenue Code of 1954 with respect to the tax treatment of social clubs and certain other membership organizations, to provide for a study of tax incentives for recycling, and for other purposes.

(Reported to Senate from the Committee on Finance with amendments, S. Rept. 94-1318)

Extends tax-exempt status under the Internal Revenue Code to clubs organized for pleasure, recreation and other nonprofitable purposes, substantially all of the activities of which are for such purposes and no part of the net earnings of which inures to the benefit of any private shareholder. States that for the purpose of determining the unrelated business income of such an organization deductions allowed corporations on certain dividends shall be treated as not directly connected with the production of gross income. Provides that such deductions allowed shall not be allowed to any organization which takes a deduction attributable to furnishing services, insurance, goods, or other items of value to members.

Denies tax-exempt status to any such organization if its charter, by-laws, or other governing instrument or any of its written policy statements contains a provision which provides for discrimination against persons on the basis of race, color, or religion.

Disallows as a deduction any carryover of taxes paid from fiscal years beginning before July 1, 1976, in the case of the minimum tax on corporations for taxable years beginning after June 30, 1976.

Directs the Secretary of the Treasury and the Administrator of the Environmental Protection Agency to conduct a study and investigation into the proper role of the Federal Government in encouraging the recycling of solid waste materials.