| 1 | 1 | | I |
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| 2 | 2 | | 119THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION H. R. 1905 |
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| 5 | 5 | | To amend the Internal Revenue Code of 1986 to exclude certain students |
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| 6 | 6 | | from the calculation to determine if certain private colleges and univer- |
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| 7 | 7 | | sities are subject to the excise tax on net investment income, and for |
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| 8 | 8 | | other purposes. |
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| 9 | 9 | | IN THE HOUSE OF REPRESENTATIVES |
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| 10 | 10 | | MARCH6, 2025 |
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| 11 | 11 | | Mr. B |
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| 12 | 12 | | UCHANAN(for himself, Mr. SMITHof Nebraska, Mr. KELLYof Pennsyl- |
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| 13 | 13 | | vania, Mrs. M |
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| 14 | 14 | | ILLERof West Virginia, Mr. MURPHY, Ms. TENNEY, and |
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| 15 | 15 | | Ms. V |
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| 16 | 16 | | ANDUYNE) introduced the following bill; which was referred to the |
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| 17 | 17 | | Committee on Ways and Means |
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| 18 | 18 | | A BILL |
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| 19 | 19 | | To amend the Internal Revenue Code of 1986 to exclude |
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| 20 | 20 | | certain students from the calculation to determine if |
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| 21 | 21 | | certain private colleges and universities are subject to |
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| 22 | 22 | | the excise tax on net investment income, and for other |
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| 23 | 23 | | purposes. |
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| 24 | 24 | | Be it enacted by the Senate and House of Representa-1 |
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| 25 | 25 | | tives of the United States of America in Congress assembled, 2 |
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| 26 | 26 | | SECTION 1. SHORT TITLE. 3 |
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| 27 | 27 | | This Act may be cited as the ‘‘Protecting American 4 |
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| 28 | 28 | | Students Act’’. 5 |
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| 29 | 29 | | VerDate Sep 11 2014 00:13 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1905.IH H1905 |
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| 30 | 30 | | ssavage on LAPJG3WLY3PROD with BILLS 2 |
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| 31 | 31 | | •HR 1905 IH |
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| 32 | 32 | | SEC. 2. CERTAIN STUDENTS NOT TAKEN INTO ACCOUNT 1 |
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| 33 | 33 | | FOR PURPOSES OF CALCULATION TO DETER-2 |
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| 34 | 34 | | MINE IF CERTAIN PRIVATE COLLEGES AND 3 |
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| 35 | 35 | | UNIVERSITIES ARE SUBJECT TO EXCISE TAX 4 |
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| 36 | 36 | | ON NET INVESTMENT INCOME. 5 |
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| 37 | 37 | | (a) I |
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| 38 | 38 | | NGENERAL.—Section 4968(b) of the Internal 6 |
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| 39 | 39 | | Revenue Code of 1986 is amended by adding at the end 7 |
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| 40 | 40 | | the following new paragraph: 8 |
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| 41 | 41 | | ‘‘(3) C |
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| 42 | 42 | | ERTAIN STUDENTS NOT TAKEN INTO AC -9 |
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| 43 | 43 | | COUNT IN DETERMINING ENDOWMENT THRESH -10 |
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| 44 | 44 | | OLD.—For purposes of paragraph (1)(D), a student 11 |
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| 45 | 45 | | shall not be taken into account with respect to an 12 |
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| 46 | 46 | | eligible educational institution unless such student 13 |
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| 47 | 47 | | meets the student eligibility requirements under sec-14 |
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| 48 | 48 | | tion 484(a)(5) of the Higher Education Act of 1965 15 |
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| 49 | 49 | | (20 U.S.C. 1091(a)(5)).’’. 16 |
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| 50 | 50 | | (b) E |
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| 51 | 51 | | FFECTIVEDATE.—The amendment made by 17 |
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| 52 | 52 | | this section shall apply to taxable years beginning after 18 |
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| 53 | 53 | | December 31, 2025. 19 |
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| 54 | 54 | | SEC. 3. REQUIREMENT TO REPORT CERTAIN INFORMATION 20 |
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| 55 | 55 | | WITH RESPECT TO APPLICATION OF EXCISE 21 |
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| 56 | 56 | | TAX BASED ON INVESTMENT INCOME OF PRI-22 |
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| 57 | 57 | | VATE COLLEGES AND UNIVERSITIES. 23 |
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| 58 | 58 | | (a) I |
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| 59 | 59 | | NGENERAL.—Section 6033 of the Internal Rev-24 |
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| 60 | 60 | | enue Code of 1986 is amended by redesignating subsection 25 |
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| 61 | 61 | | VerDate Sep 11 2014 00:13 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1905.IH H1905 |
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| 62 | 62 | | ssavage on LAPJG3WLY3PROD with BILLS 3 |
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| 63 | 63 | | •HR 1905 IH |
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| 64 | 64 | | (o) as subsection (p) and by inserting after subsection (n) 1 |
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| 65 | 65 | | the following new subsection: 2 |
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| 66 | 66 | | ‘‘(o) R |
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| 67 | 67 | | EQUIREMENTTOREPORTCERTAININFORMA-3 |
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| 68 | 68 | | TIONWITHRESPECTTOEXCISETAXBASED ONINVEST-4 |
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| 69 | 69 | | MENTINCOME OF PRIVATECOLLEGES AND UNIVER-5 |
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| 70 | 70 | | SITIES.—Each applicable educational institution described 6 |
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| 71 | 71 | | in section 4968(b) which is subject to the requirements 7 |
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| 72 | 72 | | of subsection (a) shall include on the return required 8 |
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| 73 | 73 | | under subsection (a)— 9 |
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| 74 | 74 | | ‘‘(1) the number of students taken into account 10 |
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| 75 | 75 | | for purposes of the calculation in paragraph (1)(D) 11 |
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| 76 | 76 | | of section 4968(b) (determined before the applica-12 |
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| 77 | 77 | | tion of paragraph (3) of such section), and 13 |
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| 78 | 78 | | ‘‘(2) the number of students taken into account 14 |
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| 79 | 79 | | for purposes of the calculation in paragraph (1)(D) 15 |
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| 80 | 80 | | of section 4968(b) (determined after the application 16 |
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| 81 | 81 | | of paragraph (3) of such section).’’. 17 |
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| 82 | 82 | | (b) E |
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| 83 | 83 | | FFECTIVEDATE.—The amendment made by 18 |
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| 84 | 84 | | this section shall apply to taxable years beginning after 19 |
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| 85 | 85 | | December 31, 2025. 20 |
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| 86 | 86 | | Æ |
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| 87 | 87 | | VerDate Sep 11 2014 00:13 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H1905.IH H1905 |
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| 88 | 88 | | ssavage on LAPJG3WLY3PROD with BILLS |
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