Public Law 89–352

That section 501(c)(14) of the Internal Revenue Code of 1954 (relating to certain organizations exempt from Federal income tax) is amended to read as follows:

“(14)“(14)

(A)(A)

Credit unions without capital stock organized and operated for mutual purposes and without profit.

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“(B)“(B)

Corporations or associations without capital stock organized before September 1, 1957, and operated for mutual purposes and without profit for the purpose of providing reserve funds for, and insurance of shares or deposits in—

“(i)“(i)

domestic building and loan associations,

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“(ii)“(ii)

cooperative banks without capital stock organized and operated for mutual purposes and without profit, or

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“(iii)“(iii)

mutual savings banks not having capital stock represented by shares.

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“(C)“(C)

Corporations or associations organized before September 1, 1957, and operated for mutual purposes and without profit for the purpose of providing reserve funds for associations or banks described in clause (i), (ii), or (iii) of subparagraph (B); but only if 85 percent or more of the income is attributable to providing such reserve funds and to investments. This subparagraph shall not apply to any corporation or association entitled to exemption under subparagraph (B).”

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Sec. 2.

Section 511(a)(2)(A) of such Code (relating to organizations subject to tax) is amended by inserting “(14)(B) or (C),” after “(6),” in the heading and in the text.

Sec. 3.

The amendment made by the first section of this Act shall apply to taxable years ending after the date of the enactment of this Act. The amendment made by section 2 shall apply to taxable years beginning after the date of the enactment of this Act.