Fair Treatment of Religious Organizations Act of 2026

This bill aims to amend the Internal Revenue Code of 1986 to ensure fair treatment for certain charitable organizations by clarifying the criteria for determining religious purpose for tax-exempt status. It introduces new provisions under Section 501, stating that a religious belief or practice concerning marriage, sexuality, or gender identity shall not be treated as inconsistent with law or public policy. This means such beliefs or practices cannot be used to deny an organization its tax-exempt status. Furthermore, the bill clarifies that a belief will still be considered religious even if it is not compelled by or central to a broader system of religion. These amendments are designed to broaden the scope of what qualifies as a religious purpose for tax exemption and will apply to taxable years beginning after December 31, 2025.