I
119THCONGRESS
1
STSESSION H. R. 1905
To amend the Internal Revenue Code of 1986 to exclude certain students
from the calculation to determine if certain private colleges and univer-
sities are subject to the excise tax on net investment income, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH6, 2025
Mr. B
UCHANAN(for himself, Mr. SMITHof Nebraska, Mr. KELLYof Pennsyl-
vania, Mrs. M
ILLERof West Virginia, Mr. MURPHY, Ms. TENNEY, and
Ms. V
ANDUYNE) introduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to exclude
certain students from the calculation to determine if
certain private colleges and universities are subject to
the excise tax on net investment income, and for other
purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Protecting American 4
Students Act’’. 5
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•HR 1905 IH
SEC. 2. CERTAIN STUDENTS NOT TAKEN INTO ACCOUNT 1
FOR PURPOSES OF CALCULATION TO DETER-2
MINE IF CERTAIN PRIVATE COLLEGES AND 3
UNIVERSITIES ARE SUBJECT TO EXCISE TAX 4
ON NET INVESTMENT INCOME. 5
(a) I
NGENERAL.—Section 4968(b) of the Internal 6
Revenue Code of 1986 is amended by adding at the end 7
the following new paragraph: 8
‘‘(3) C
ERTAIN STUDENTS NOT TAKEN INTO AC -9
COUNT IN DETERMINING ENDOWMENT THRESH -10
OLD.—For purposes of paragraph (1)(D), a student 11
shall not be taken into account with respect to an 12
eligible educational institution unless such student 13
meets the student eligibility requirements under sec-14
tion 484(a)(5) of the Higher Education Act of 1965 15
(20 U.S.C. 1091(a)(5)).’’. 16
(b) E
FFECTIVEDATE.—The amendment made by 17
this section shall apply to taxable years beginning after 18
December 31, 2025. 19
SEC. 3. REQUIREMENT TO REPORT CERTAIN INFORMATION 20
WITH RESPECT TO APPLICATION OF EXCISE 21
TAX BASED ON INVESTMENT INCOME OF PRI-22
VATE COLLEGES AND UNIVERSITIES. 23
(a) I
NGENERAL.—Section 6033 of the Internal Rev-24
enue Code of 1986 is amended by redesignating subsection 25
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•HR 1905 IH
(o) as subsection (p) and by inserting after subsection (n) 1
the following new subsection: 2
‘‘(o) R
EQUIREMENTTOREPORTCERTAININFORMA-3
TIONWITHRESPECTTOEXCISETAXBASED ONINVEST-4
MENTINCOME OF PRIVATECOLLEGES AND UNIVER-5
SITIES.—Each applicable educational institution described 6
in section 4968(b) which is subject to the requirements 7
of subsection (a) shall include on the return required 8
under subsection (a)— 9
‘‘(1) the number of students taken into account 10
for purposes of the calculation in paragraph (1)(D) 11
of section 4968(b) (determined before the applica-12
tion of paragraph (3) of such section), and 13
‘‘(2) the number of students taken into account 14
for purposes of the calculation in paragraph (1)(D) 15
of section 4968(b) (determined after the application 16
of paragraph (3) of such section).’’. 17
(b) E
FFECTIVEDATE.—The amendment made by 18
this section shall apply to taxable years beginning after 19
December 31, 2025. 20
Æ
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