IB 
Union Calendar No. 370 
113TH CONGRESS 
2D SESSION 
H. R. 4691 
[Report No. 113–497] 
To amend the Internal Revenue Code of 1986 to modify the tax rate for 
excise tax on investment income of private foundations. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 20, 2014 
Mr. PAULSEN (for himself and Mr. DANNY K. DAVIS of Illinois) introduced 
the following bill; which was referred to the Committee on Ways and Means 
JUNE 26, 2014 
Additional sponsor: Mr. Reed 
JUNE 26, 2014 
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] 
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A BILL 
To amend the Internal Revenue Code of 1986 to modify 
the tax rate for excise tax on investment income of 
private foundations. 
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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. MODIFICATION OF THE TAX RATE FOR THE EX-
CISE TAX ON INVESTMENT INCOME OF PRI-
VATE FOUNDATIONS. 
(a) IN GENERAL.—Section 4940(a) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘2 percent’’ 
and inserting ‘‘1 percent’’. 
(b) ELIMINATION OF REDUCED TAX WHERE FOUN-
DATION
MEETS
CERTAIN
DISTRIBUTION
REQUIRE-
MENTS.—Section 4940 of such Code is amended by strik-
ing subsection (e). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Private Foundation Ex-
cise Tax Simplification Act of 2014’’. 
SEC. 2. MODIFICATION OF THE TAX RATE FOR THE EXCISE 
TAX ON INVESTMENT INCOME OF PRIVATE 
FOUNDATIONS. 
(a) IN GENERAL.—Section 4940(a) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘2 percent’’ 
and inserting ‘‘1 percent’’. 
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(b) ELIMINATION OF REDUCED TAX WHERE FOUNDA-
TION MEETS CERTAIN DISTRIBUTION REQUIREMENTS.— 
Section 4940 of such Code is amended by striking subsection 
(e). 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after the date 
of the enactment of this Act. 
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Union Calendar No. 370 
113TH CONGRESS 
2D SESSION 
H. R. 4691 
[Report No. 113–497] 
A BILL 
To amend the Internal Revenue Code of 1986 to 
modify the tax rate for excise tax on investment 
income of private foundations. 
JUNE 26, 2014 
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 Mar 15 2010 
21:41 Jun 26, 2014
Jkt 039200
PO 00000
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H4691
emcdonald on DSK67QTVN1PROD with BILLS