A bill to amend section 501(c)(12) of the Internal Revenue Code of 1954 (relating to the taxation of telephone cooperatives).

Exempts the income of (1) benevolent life insurance associations of a purely local character, (2) mutual ditch or irrigation companies, (3) mutual or cooperative telephone companies, or (4) like organizations from taxation under the Internal Revenue Code only if 85 percent or more of the income consisted of payments from members and is used to meet expenses and pay losses.