Bill Details
HR.1905 - 119th Congress
Status
Latest action
2025-03-06 - Referred to the House Committee on Ways and Means.
Introduced Date
2025-03-06
Policy Area
Taxation
Committees
View committees (1)
Sponsors
Cosponsors
View cosponsors (8)
- Rep. Smith, Adrian [R-Nebraska-3]
- Rep. Kelly, Mike [R-Pennsylvania-16]
- Rep. Miller, Carol D. [R-West Virginia-1]
- Rep. Murphy, Gregory F. [R-North Carolina-3]
- Rep. Tenney, Claudia [R-New York-24]
- Rep. Van Duyne, Beth [R-Texas-24]
- Rep. Stefanik, Elise M. [R-New York-21]
- Rep. Malliotakis, Nicole [R-New York-11]
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AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would change how some private colleges and universities are counted for a federal tax on investment income. In simple terms, it would keep certain students out of the headcount used to decide whether a school must pay this tax, but only if those students do not meet a specific federal student eligibility rule. The bill would also require affected schools to report two numbers on their tax filings: the student count before this change and the count after it. The changes would start with tax years beginning after December 31, 2025.
- Certain students would no longer be included in the student count used to measure whether a private college or university is large enough to be subject to the excise tax on net investment income.
- To be left out of the count, a student must not meet the eligibility requirements in a section of the Higher Education Act of 1965.
- Affected schools would have to report both the old student count and the new adjusted count on their annual tax return.
- The changes would apply to tax years beginning after December 31, 2025.
Official Summaries
No summaries available
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1905 Introduced in House (IH)]
<DOC>
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.
_______________________________________________________________________
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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