H.R. 1905

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1905 Introduced in House (IH)]

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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 
universities are subject to the excise tax on net investment income, 
and for other purposes.

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IN THE HOUSE OF REPRESENTATIVES

March 6, 2025

Mr. Buchanan (for himself, Mr. Smith of Nebraska, Mr. Kelly of 
Pennsylvania, 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 Representatives 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 DETERMINE 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 account in 
determining endowment threshold.--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 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 December 31, 2025.

SEC. 3. REQUIREMENT TO REPORT CERTAIN INFORMATION WITH RESPECT TO 
APPLICATION OF EXCISE TAX BASED ON INVESTMENT INCOME OF 
PRIVATE COLLEGES AND UNIVERSITIES.

(a) In General.--Section 6033 of the Internal Revenue 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 Information With Respect To 
Excise Tax Based on Investment Income of Private Colleges and 
Universities.--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 December 31, 2025.
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