Sec. 101. Facilitation of program-related investments
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Subsection
(c)of section 4944 of the Internal Revenue Code of 1986 is amended to read as follows: For purposes of this subchapter, program-related investments— are not investments which jeopardize the carrying out of one or more purposes described in section 170(c)(2)(B), are not business holdings under section 4943, and may be qualifying distributions under section 4942. For purposes of this subchapter and chapter 61, an investment made by a private foundation constitutes a program-related investment if— the primary purpose of the investment is to accomplish one or more of the purposes described in section 170(c)(2)(B), no significant purpose of the investment is the production of income or the appreciation of property, and no purpose of the investment is to accomplish one or more of the purposes described in section 170(c)(2)(D). For purposes of subparagraph (A)— determinations of whether an investment qualifies as a program-related investment shall be based on consideration of all relevant facts and circumstances, and the fact that the entity produces significant income or capital appreciation shall not, in the absence of other factors, be conclusive evidence of a significant purpose involving the production of income or the appreciation of property. The Secretary shall establish a procedure which shall be substantially similar to the processes for recognition of exemption under section 501(a) or 4945(g) and under which an entity seeking to receive program-related investments may petition the Secretary for a determination that, based on consideration of all relevant facts and circumstances, investments by private foundations in such entity will be program-related investments meeting the requirements of paragraph (2). Under this procedure, the Secretary shall rule on all requests within 120 days of submission. Once a determination has been made that investments in an entity qualify as program-related investments, organizations making such investments shall be entitled to rely on the determination, unless and until the Secretary publishes notice of revocation of the determination. Entities seeking program-related investments are not required to seek a determination under paragraph (3), and the absence of such a determination shall not affect the ability of a private foundation to make a program-related investment based on its own determination that the investment qualifies as a program-related investment. For purposes of this subsection and section 6104A, all references to private foundations include organizations that are treated as private foundations under any of the provisions of sections 4940 through 4948, inclusive, whether created under State law or the law of any federally recognized tribe. .