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 univer-
sities 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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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. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Protecting American 
Students Act’’. 
SEC. 2. CERTAIN STUDENTS NOT TAKEN INTO ACCOUNT 
FOR PURPOSES OF CALCULATION TO DETER-
MINE IF CERTAIN PRIVATE COLLEGES AND 
UNIVERSITIES ARE SUBJECT TO EXCISE TAX 
ON NET INVESTMENT INCOME. 
(a) IN GENERAL.—Section 4968(b) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
‘‘(3) CERTAIN STUDENTS NOT TAKEN INTO AC-
COUNT IN DETERMINING ENDOWMENT THRESHOLD.— 
For purposes of paragraph (1)(D), a student shall not 
be taken into account with respect to an eligible edu-
cational institution unless such student meets the stu-
dent eligibility requirements under section 484(a)(5) 
of the Higher Education Act of 1965 (20 U.S.C. 
1091(a)(5)).’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2024. 
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SEC. 3. REQUIREMENT TO REPORT CERTAIN INFORMATION 
WITH RESPECT TO APPLICATION OF EXCISE 
TAX BASED ON INVESTMENT INCOME OF PRI-
VATE COLLEGES AND UNIVERSITIES. 
(a) IN GENERAL.—Section 6033 of the Internal Rev-
enue Code of 1986 is amended by redesignating subsection 
(o) as subsection (p) and by inserting after subsection (n) 
the following new subsection: 
‘‘(o) REQUIREMENT TO REPORT CERTAIN INFORMA-
TION WITH RESPECT TO EXCISE TAX BASED ON INVEST-
MENT
INCOME
OF
PRIVATE
COLLEGES
AND
UNIVER-
SITIES.—Each applicable educational institution described 
in section 4968(b) which is subject to the requirements of 
subsection (a) shall include on the return required under 
subsection (a)— 
‘‘(1) the number of students taken into account 
for purposes of the calculation in paragraph (1)(D) of 
section 4968(b) (determined before the application of 
paragraph (3) of such section), and 
‘‘(2) the number of students taken into account 
for purposes of the calculation in paragraph (1)(D) of 
section 4968(b) (determined after the application of 
paragraph (3) of such section).’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2024. 
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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 
exclude certain students from the calculation to 
determine if certain private colleges and univer-
sities are subject to the excise tax on net invest-
ment income, and for other purposes. 
DECEMBER 24, 2024 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
VerDate Sep 11 2014 
00:24 Dec 27, 2024
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PO 00000
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