I 

118TH CONGRESS 

2D SESSION H. R. 8913 

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. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 2, 2024 

Mr. FERGUSON (for himself, Mr. KELLY of Pennsylvania, Mrs. MILLER of 

West Virginia, Mr. MURPHY, Mr. KUSTOFF, Ms. TENNEY, Mr. MOORE

of Utah, Ms. MALLIOTAKIS, and Ms. STEFANIK) 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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Protecting American 

5 Students Act’’. 


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1 SEC. 2. CERTAIN STUDENTS NOT TAKEN INTO ACCOUNT 

2 FOR PURPOSES OF CALCULATION TO DETER3 MINE IF CERTAIN PRIVATE COLLEGES AND 

4 UNIVERSITIES ARE SUBJECT TO EXCISE TAX 

5 ON NET INVESTMENT INCOME. 

6 (a) IN GENERAL.—Section 4968(b) of the Internal 

7 Revenue Code of 1986 is amended by adding at the end 

8 the following new paragraph: 

9 ‘‘(3) CERTAIN STUDENTS NOT TAKEN INTO AC10 COUNT IN DETERMINING ENDOWMENT THRESH11 OLD.—For purposes of paragraph (1)(D), a student 

12 shall not be taken into account with respect to an 

13 eligible educational institution unless such student 

14 meets the student eligibility requirements under sec15 tion 484(a)(5) of the Higher Education Act of 1965 

16 (20 U.S.C. 1091(a)(5)).’’. 

17 (b) EFFECTIVE DATE.—The amendment made by 

18 this section shall apply to taxable years beginning after 

19 December 31, 2024. 

20 SEC. 3. REQUIREMENT TO REPORT CERTAIN INFORMATION 

21 WITH RESPECT TO APPLICATION OF EXCISE 

22 TAX BASED ON INVESTMENT INCOME OF PRI23 VATE COLLEGES AND UNIVERSITIES. 

24 (a) IN GENERAL.—Section 6033 of the Internal Rev25 enue Code of 1986 is amended by redesignating subsection 


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1 (o) as subsection (p) and by inserting after subsection (n) 

2 the following new subsection: 

3 ‘‘(o) REQUIREMENT TO REPORT CERTAIN INFORMA4 TION WITH RESPECT TO EXCISE TAX BASED ON INVEST5 MENT INCOME OF PRIVATE COLLEGES AND UNIVER6 SITIES.—Each applicable educational institution described 

7 in section 4968(b) which is subject to the requirements 

8 of subsection (a) shall include on the return required 

9 under subsection (a)— 

10 ‘‘(1) the number of students taken into account 

11 for purposes of the calculation in paragraph (1)(D) 

12 of section 4968(b) (determined before the applica13 tion of paragraph (3) of such section), and 

14 ‘‘(2) the number of students taken into account 

15 for purposes of the calculation in paragraph (1)(D) 

16 of section 4968(b) (determined after the application 

17 of paragraph (3) of such section).’’. 

18 (b) EFFECTIVE DATE.—The amendment made by 

19 this subsection shall apply to taxable years beginning after 

20 December 31, 2024. 

Æ 


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