American Baptist Churches of Pennsylvania and Delaware

Clergy Housing Allowance



Appellate Court Rules to Uphold the Housing Allowance


A note from Louis P. Barbarin, Chief Executive Officer, MMBB

I am extremely pleased to announce that we received news this afternoon that the Seventh Circuit issued a unanimous decision in the case of Gaylor v Mnuchin and upheld the constitutionality of the housing allowance under section 107(2) of the Internal Revenue Code.

In a 3-0 decision, the appellate court cited the constitutionality of section 107(2) under the traditional three-factor test set forth in Lemon v. Kurtzman, 403 U.S. 602 (1971), as well as the "historical significance" test of Town of Greece v. Galloway, 572 U.S. 565 (2014).

A statement with greater detail will be forthcoming. Thank you.

Louis P. Barbarin
Chief Executive Officer