26 U.S.C. § 3308 — Instrumentalities of the United States

Page 2824 TITLE 26—INTERNAL REVENUE CODE § 3308 § 3308. Instrumentalities of the United States Notwithstanding any other provision of law (whether enacted before or after the enactment of this section) which grants to any instrumen- tality of the United States an exemption from taxation, such instrumentality shall not be ex- empt from the tax imposed by section 3301 un- less such other provision of law grants a specific exemption, by reference to section 3301 (or the corresponding section of prior law), from the tax imposed by such section. (Added Pub. L. 86–778, title V, § 531(d)(1), Sept. 13, 1960, 74 Stat. 983.) Editorial Notes REFERENCES IN TEXT Enacted before or after the enactment of this section, referred to in text, means enacted before or after Sept. 13, 1960, the date of approval of Pub. L. 86–778. PRIOR PROVISIONS A prior section 3309 was renumbered section 3311 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section applicable with respect to remuneration paid after 1961 for services performed after 1961, see section 535 of Pub. L. 86–778, set out as an Effective Date of 1960 Amendment note under section 3305 of this title. APPLICABILITY TO FEDERAL LAND BANKS, FEDERAL IN- TERMEDIATE CREDIT BANKS, AND BANKS FOR CO- OPERATIVES Applicability of this section to Federal land banks, Federal intermediate credit banks, and banks for co- operatives, see section 531(g) of Pub. L. 86–778, set out as a note under section 3305 of this title. § 3309. State law coverage of services performed for nonprofit organizations or governmental entities (a) State law requirements For purposes of section 3304(a)(6)— (1) except as otherwise provided in sub- sections (b) and (c), the services to which this paragraph applies are— (A) service excluded from the term ‘‘em- ployment’’ solely by reason of paragraph (8) of section 3306(c), and (B) service excluded from the term ‘‘em- ployment’’ solely by reason of paragraph (7) of section 3306(c); and (2) the State law shall provide that a govern- mental entity, including an Indian tribe, or any other organization (or group of govern- mental entities or other organizations) which, but for the requirements of this paragraph, would be liable for contributions with respect to service to which paragraph (1) applies may elect, for such minimum period and at such time as may be provided by State law, to pay (in lieu of such contributions) into the State unemployment fund amounts equal to the amounts of compensation attributable under the State law to such service. The State law may provide safeguards to ensure that govern- mental entities or other organizations so electing will make the payments required under such elections. (b) Section not to apply to certain service This section shall not apply to service per- formed— (1) in the employ of (A) a church or conven- tion or association of churches, (B) an organi- zation which is operated primarily for reli- gious purposes and which is operated, super- vised, controlled, or principally supported by a church or convention or association of church- es, or (C) an elementary or secondary school which is operated primarily for religious pur- poses, which is described in section 501(c)(3), and which is exempt from tax under section 501(a); (2) by a duly ordained, commissioned, or li- censed minister of a church in the exercise of his ministry or by a member of a religious order in the exercise of duties required by such order; (3) in the employ of a governmental entity referred to in paragraph (7) of section 3306(c), if such service is performed by an individual in the exercise of his duties— (A) as an elected official; (B) as a member of a legislative body, or a member of the judiciary, of a State or polit- ical subdivision thereof, or of an Indian tribe; (C) as a member of the State National Guard or Air National Guard; (D) as an employee serving on a temporary basis in case of fire, storm, snow, earth- quake, flood, or similar emergency; (E) in a position which, under or pursuant to the State or tribal law, is designated as (i) a major nontenured policymaking or advi- sory position, or (ii) a policymaking or advi- sory position the performance of the duties of which ordinarily does not require more than 8 hours per week; or (F) as an election official or election work- er if the amount of remuneration received by the individual during the calendar year for services as an election official or election worker is less than $1,000; (4) in a facility conducted for the purpose of carrying out a program of— (A) rehabilitation for individuals whose earning capacity is impaired by age or phys- ical or mental deficiency or injury, or (B) providing remunerative work for indi- viduals who because of their impaired phys- ical or mental capacity cannot be readily ab- sorbed in the competitive labor market, by an individual receiving such rehabilitation or remunerative work; (5) as part of an unemployment work-relief or work-training program assisted or financed in whole or in part by any Federal agency or an agency of a State or political subdivision thereof or of an Indian tribe, by an individual receiving such work relief or work training; and (6) by an inmate of a custodial or penal in- stitution. (c) Nonprofit organizations must employ 4 or more This section shall not apply to service per- formed during any calendar year in the employ