Protecting Endowments from Our Adversaries Act

senate

house

president

Legislation Details

Amends the Internal Revenue Code of 1986 to impose an excise tax on certain investments made by private colleges and universities.
Introduces a 50% excise tax on the fair market value of listed investments acquired by specified educational institutions during a taxable year.
Imposes a 100% tax on the net income from 1-year listed investments, calculated as the excess of total income and gains over allowable deductions and losses.
Defines “listed investments” as interests in entities on specific government lists, including the Entity List and Military End User List.
Requires the Secretary of Commerce to maintain and update a list of entities subject to the excise tax.
Specifies that “specified educational institutions” are those with assets exceeding $1 billion and not classified as state colleges or universities.
Allows for the treatment of related organizations’ assets as part of the educational institution’s assets under certain conditions.
Establishes that the fair market value of debt is considered its principal amount for tax calculations.
Authorizes the Secretary to issue regulations necessary for the implementation of the new tax provisions.
Sets effective dates for the amendments, applying to taxable years ending after specified conditions are met, with exceptions for prior investments and income.

Amends the Internal Revenue Code of 1986 to impose an excise tax on certain investments made by private colleges and universities.
Introduces a 50% excise tax on the fair market value of listed investments acquired by specified educational institutions during a taxable year.
Imposes a 100% tax on the net income from 1-year listed investments, calculated as the excess of total income and gains over allowable deductions and losses.
Defines “listed investments” as interests in entities on specific government lists, including the Entity List and Military End User List.
Requires the Secretary of Commerce to maintain and update a list of entities subject to the excise tax.
Specifies that “specified educational institutions” are those with assets exceeding $1 billion and not classified as state colleges or universities.
Allows for the treatment of related organizations’ assets as part of the educational institution’s assets under certain conditions.
Establishes that the fair market value of debt is considered its principal amount for tax calculations.
Authorizes the Secretary to issue regulations necessary for the implementation of the new tax provisions.
Sets effective dates for the amendments, applying to taxable years ending after specified conditions are met, with exceptions for prior investments and income.