EXEMPTION FROM COMMUNICATIONS AND TRANSPORTATION TAXES FOR NONPROFIT EDUCATIONAL ORGANIZATIONS.

SEC. 135. EXEMPTION FROM COMMUNICATIONS AND TRANSPORTATION TAXES FOR NONPROFIT EDUCATIONAL ORGANIZATIONS. (a) Exemption.— Subchapter E of chapter 33 (special provisions applicable to services and facilities taxes) is amended by renumbering section 4294 as 4295, and by inserting after section 4293 the following new section: “SEC. 4294. EXEMPTION FOR NONPROFIT EDUCATIONAL ORGANIZATIONS. “(a) Exemption.—Under regulations prescribed by the Secretary or his delegate, no tax shall be imposed under section 4251 or 4261 on any amount paid by a nonprofit educational organization for services or facilities furnished to such organization. “(b) Definition.—For purposes of subsection (a), the term ‘nonprofit educational organization’ means an educational organization described in section 503 (b) (2) which is exempt from income tax under section 501 (a).” (b) Clerical Amendment.—The table of sections for subchapter E of chapter 33 is amended by striking out “Sec. 4294. Cross reference to general administrative provisions.” and inserting in lieu thereof “Sec. 4294. Exemption for nonprofit educational organizations. “Sec. 4295. Cross reference to general administrative provisions.”