PUBLIC LAW 103-66 —AUG. 10, 1993 107 STAT. 479 " (i) IN GENERAL.— Paragraph (1) shall not apply to any in-house expenditures tor any taxable year if such expenditures do not exceed $2,000. In determining whether a taxpayer exceeds the $2,000 limit under this clause, there shall not be taken into account overhead costs otherwise allocable to activities described in paragraphs (I)(A) and (D).
- (ii) IN-HOUSE EXPENDITURES.— For purposes of
clause (i), the term *in-house expenditures means expenditures described in paragraphs (I)(A) and (D) other than— "(I) payments by the taxpayer to a person engaged in the trade or business of conducting activities described in paragraph (1) for the conduct of such activities on l>ehalf of the taxpayer, or "(11) dues or other similar amounts paid or incurred by the taxpayer which are allocable to activities described in paragraph (1). "(C) EXPENSES INCURRED IN CONNECTION WITH LOBBY- ING AND POLITICAL ACTIVITIES. —Any amount paid or incurred for research for, or preparation, planning, or coordination of, any activity described in paragraph (1) shall be treated as paid or incurred in connection with such activity. "(6) COVERED EXECUTIVE BRANCH OFFICIAL. —For purposes of this subsection, the term 'covered executive branch omcial' means—
- (A) the President,
"(B) the Vice President, "(C) any officer or employee of the White House Office of the Executive Office of the President, and the 2 most senior level ofiGcers of each of the other agencies in such Executive Office, and "(D)(i) any individual serving in a position in level I of the Executive Schedule under section 5312 of title 5, United States Code, (ii) any other individual designated by the President as having Cabinet level status, and (iii) any immediate deputy of an individual described in clause (i) or (ii). "(7) SPECIAL RULE FOR INDIAN TRIBAL GOVERNMENTS.— For purposes of this subsection, an Indian tribal government shall be treated in the same manner as a local council or similar governing body. "(8) CROSS REFERENCE. — Tor reporting requirements and alternative taxes related to this subsection, see section SOSSCe)." (b) DISALLOWANCE OF CHARITABLE DEDUCTION IN CERTAIN CASES. —Section 170(f) (relating to disallowance of deduction in certain cases and special rules), as amended by section 13172, is amended by adding at the end the following new paragraph: "(9) DENIAL OF DEDUCTION WHERE CONTRIBUTION FOR LOBBYING ACTIVITIES. —No deduction shall be allowed under this section for a contribution to an organization which conducts activities to which section 162(e)(l) applies on matters of direct financial interest to the donor's trade or business, if a principal purpose of the contribution was to avoid Federal income tax
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