I 
119TH CONGRESS 
1ST SESSION 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 
MARCH 6, 2025 
Mr. BUCHANAN (for himself, Mr. SMITH of Nebraska, Mr. KELLY of Pennsyl-
vania, Mrs. MILLER of West Virginia, Mr. MURPHY, Ms. TENNEY, and 
Ms. VAN DUYNE) 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-
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’’. 
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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
THRESH-
OLD.—For purposes of paragraph (1)(D), a student 
shall not be taken into account with respect to an 
eligible educational institution unless such student 
meets the student eligibility requirements under sec-
tion 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 
December 31, 2025. 
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 
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(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 applica-
tion 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 
December 31, 2025. 
Æ 
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