Private Foundation Excise Tax Simplification Act of 2019

Private Foundation Excise Tax Simplification Act of 2019

This bill reduces the excise tax on the net investment income of private foundations from 2% to 1.39%.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4953 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 4953

 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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                    IN THE HOUSE OF REPRESENTATIVES

                            October 31, 2019

Mr. Danny K. Davis of Illinois (for himself and Mr. Holding) 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 modify the tax rate for 
        excise tax on investment income of private foundations.

    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 ``Private Foundation Excise Tax 
Simplification Act of 2019''.

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 ``1.39 
percent''.
    (b) Elimination of Reduced Tax Where Foundation 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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