IB 

Union Calendar No. 798 

118TH CONGRESS 

2D SESSION H. R. 8913 

[Report No. 118–949] 

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 

DECEMBER 24, 2024 

Additional sponsor: Mr. SMITH of Nebraska 

DECEMBER 24, 2024 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on July 2, 2024] 


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•HR 8913 RH

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. 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
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•HR 8913 RH

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’’. 

6 SEC. 2. CERTAIN STUDENTS NOT TAKEN INTO ACCOUNT 

7 FOR PURPOSES OF CALCULATION TO DETER8 MINE IF CERTAIN PRIVATE COLLEGES AND 

9 UNIVERSITIES ARE SUBJECT TO EXCISE TAX 

10 ON NET INVESTMENT INCOME. 

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

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

13 the following new paragraph: 

14 ‘‘(3) CERTAIN STUDENTS NOT TAKEN INTO AC15 COUNT IN DETERMINING ENDOWMENT THRESHOLD.— 

16 For purposes of paragraph (1)(D), a student shall not 

17 be taken into account with respect to an eligible edu18 cational institution unless such student meets the stu19 dent eligibility requirements under section 484(a)(5) 

20 of the Higher Education Act of 1965 (20 U.S.C. 

21 1091(a)(5)).’’. 

22 (b) EFFECTIVE DATE.—The amendment made by this 

23 section shall apply to taxable years beginning after Decem24 ber 31, 2024. 


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•HR 8913 RH

1 SEC. 3. REQUIREMENT TO REPORT CERTAIN INFORMATION 

2 WITH RESPECT TO APPLICATION OF EXCISE 

3 TAX BASED ON INVESTMENT INCOME OF PRI4 VATE COLLEGES AND UNIVERSITIES. 

5 (a) IN GENERAL.—Section 6033 of the Internal Rev6 enue Code of 1986 is amended by redesignating subsection 

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

8 the following new subsection: 

9 ‘‘(o) REQUIREMENT TO REPORT CERTAIN INFORMA10 TION WITH RESPECT TO EXCISE TAX BASED ON INVEST11 MENT INCOME OF PRIVATE COLLEGES AND UNIVER12 SITIES.—Each applicable educational institution described 

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

14 subsection (a) shall include on the return required under 

15 subsection (a)— 

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

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

18 section 4968(b) (determined before the application of 

19 paragraph (3) of such section), and 

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

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

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

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

24 (b) EFFECTIVE DATE.—The amendment made by this 

25 section shall apply to taxable years beginning after Decem26 ber 31, 2024. 


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kjohnson on DSK7ZCZBW3PROD with $$_JOB
Union Calendar No. 798 

118TH CONGRESS 

2D SESSION H. R. 8913 

[Report No. 118–949] 

A BILL 

To amend the Internal Revenue Code of 1986 to 

ment income, and for other purposes. sities are subject to the excise tax on net investdetermine if certain private colleges and univerexclude certain students from the calculation to 

DECEMBER 24, 2024 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


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