A bill to amend the Internal Revenue Code of 1986 to increase the excise tax on net investment income of certain private colleges and universities.

Bill: 118-s-3514
Sponsor: full_name: Sen. Vance, J. D. [R-OH]
Introduced: 2023-12-14
Policy area: Taxation
Latest action: action_date: 2023-12-14
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2023-12-14
action_desc: Introduced in Senate
text: <p>This bill increases the excise tax (from 1.4% to 35%) on the net investment income of private educational institutions whose assets had a aggregate fair market value of at least $10 billion in the preceding taxable year.&nbsp; &nbsp;</p>

tv_txt: II 118th CONGRESS 1st Session S. 3514 IN THE SENATE OF THE UNITED STATES December 14, 2023 Mr. Vance introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to increase the excise tax on net investment income of certain private colleges and universities.

1. Increase in excise tax on net investment income (a) In general Section 4968 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (e) Increase in tax in case of certain institutions In the case of an applicable educational institution— (1) which is not religious in nature, and (2) the aggregate fair market value of the assets of which at the end of the preceding taxable year (other than those assets which are used directly in carrying out the institution’s exempt purpose) is at least $10,000,000,000, subsection (a) shall be applied by substituting 35 percent for 1.4 percent . . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2023.