IRS regulations state that the clergy housing allowance can be provided in payment for “services which are ordinarily the duties of a minister of the gospel.” These services include:

  • The performance of sacerdotal functions;
  • The conduct of religious worship;
  • The administration and maintenance of religious organizations and their integral agencies; and
  • The performance of teaching and administrative duties at theology seminaries.

According to IRS Publication 517, Wandering Ministers may not be eligible for the clergy housing allowance if the clergy person is:

  • An employee of the United States, the District of Columbia, a foreign government, or any other political subdivisions (chaplain in the Armed Forces of the U.S.).
  • Performing services in a government-owned and operated hospital.

Services performed at a church-related hospital or health and welfare institution, or a private nonprofit hospital, are considered to be part of the ministry.