A bill to amend the Internal Revenue Code of 1954 with respect to influencing legislation by public charities.

Denies tax exempt status to an organization if a substantial part of the activities of such organization consist of carrying on propaganda, or otherwise attempting to infuluence legislation. Limits the applicability of this section to organizations that normally make expenditures for the purpose of influencing legislation in excess of the lobbying ceiling amount or in excess of the ceiling amount for such organization as determined under the Internal Revenue Code.

Imposes a tax of 25 percent of the amount of any excess lobbying expenditures.

Defines the lobbying nontaxable amount as the lesser of $1,000,000 or a specified percentage of exempt purpose expenditures.

Prohibits any charitable contribution tax deduction for out-of-pocket expenditures made by any person on behalf of a tax-exempt organization if the expenditure is made for the purpose of influencing legislation.