H.R. 7087 — Grave Injustice Parity Act

This section expands the unlimited charitable deduction for estate taxes under IRC §2055(a) and gift taxes under IRC §2522(a) and (b) to include transfers to qualifying cemetery companies—specifically, those owned and operated exclusively for the benefit of members or chartered solely for burial purposes (with no authority for other business), operated not for profit, and with no net earnings inuring to private shareholders or individuals—by adding new paragraphs (6), (5), and (6), respectively. The amendments apply to taxable years beginning after the date of enactment.

This section expands exceptions under the private foundation excise tax rules to treat distributions to cemetery companies described in IRC §170(c)(5) (i.e., nonprofit entities used exclusively for burial or other disposition of human remains) as (1) qualifying distributions for purposes of the tax on failure to distribute income, and (2) non-taxable expenditures. The changes apply to distributions made after the date of enactment.