A bill to clarify that the Internal Revenue Code of 1954 does not provide tax benefits to organizations which discriminate on the basis of race or color.

Provides that an organization which discriminates on the basis of race or color shall not be exempt from tax under any provision of the Internal Revenue Code and that no deduction shall be allowed under any provision of such Code for any contribution to (or for the use of) such an organization.

Provides that nothing in this Act shall be construed to: (1) prohibit programs designed to rectify the effects of past discrimination; or (2) imply that Federal court decisions which deny tax exemptions to institutions which discriminate on the basis of race or color are not correct interpretations of the law.