,,ii #aafth ,,congress #ast ,session ,s4 #agcb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #e1 #bjai,mr4 ,wyden introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide rules for the disallowance and recapture of certain charitable contributions to colleges and universities1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,college ,admissions ,fairness ,act4 #b4 ,treatment of certain charitable contributions to colleges and universities 7a7 ,in general ,section #agj7;f7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#ai7 ,denial of deduction and recapture for certain charitable contributions to colleges and universities 7,a7 ,in general ,in any taxable year in which the taxpayer is a restricted contributor-- 7i7 the deduction under subsection 7a7 shall be reduced 7but not below zero7 by the disallowed amount1 and 7ii7 any disallowed amount that exceeds the amount of the reduction under clause 7i7 shall be included in the income of such restricted contributor in such taxable year4 7,b7 ,restricted contributor ,for purposes of this paragraph1 the term restricted contributor means1 with respect to any taxable year1 any individual-- 7i7 who made any specified contribution to a specified college or university or to any related organization of such specified college or university during the applicable period1 and 7ii7 who has an applicable child who is enrolled at such specified college or university during such taxable year4 7,c7 ,disallowed amount ,for purposes of this paragraph1 with respect to any specified college or university for any taxable year1 the disallowed amount is the amount equal to the excess 7if any7 of-- 7i7 the amount of specified contributions of the taxpayer to such specified college or university during the applicable period1 over 7ii7 the sum of-- 7,i7 #ajj1jjj1 plus 7,,ii7 the aggregate amount of the reductions under subparagraph 7,a77i7 and inclusions under subparagraph 7,a77ii7 for all taxable years in the applicable period preceding the taxable year for which the determination is being made4 7,d7 ,specified contribution ,for purposes of this paragraph1 the term specified contribution means1 with respect to any specified college or university at which an applicable child of a restricted contributor is enrolled during the taxable year-- 7i7 any contribution for which a deduction is allowed under this section 7or would have been allowed but for this paragraph or subsection 7b77 and which is made1 directly or indirectly1 during the applicable period to such specified college or university or to any related organization by-- 7,i7 the restricted contributor1 or 7,,ii7 a partnership1 corporation1 trust1 or other entity for the benefit of or at the direction of the restricted contributor1 7ii7 any contribution which is made during the applicable period to such specified college or university or to any related organization by-- 7,i7 a donor advised fund 7as defined in section #diff7;d77#b77 with respect to which the restricted contributor is a person described in section #diff7;d77#b77;,a77iii71 or 7,,ii7 a private foundation with respect to which the restricted contributor is a disqualified person 7as defined in section #didf7;a771 and 7iii7 any legally binding pledge which is made during the applicable period to such specified college or university or to any related organization by a person described in clause 7i7 or 7ii74 7,e7 ,applicable period ,for purposes of this subsection1 the term applicable period means1 with respect to any taxable year1 the #f-year period ending with the last day of the taxable year4 7,f7 ,applicable child ,for purposes of this subsection1 the term applicable child means1 with respect to any restricted contributor1 any individual who bears a relationship to such restricted contributor that is described in section #aeb7;c77#b77;,a74 7,g7 ,specified college or university2 related organization ,for purposes of this section-- 7i7 ,specified college or university ,the term specified college or university means any institution of higher education 7as defined in section #aja of the ,higher ,education ,act of #aife7 other than an institution which-- 7,i7 has a written policy that prohibits as a factor in admissions decisions the consideration of-- 7aa7 direct or indirect donations from an applicant or family member of an applicant1 and 7bb7 the financial ability of an applicant or family member of an applicant to make a donation1 and 7,,ii7 demonstrates to the satisfaction of the ,secretary that such policy is properly enforced4 7ii7 ,related organization ,the term related organization means1 with respect to any specified college or university1 an organization which-- 7,i7 controls1 or is controlled by1 such specified college or university1 7,,ii7 is controlled by one or more persons which also control such specified college or university1 or 7,,iii7 is a supported organization 7as defined in section #eji7;f77#c771 or an organization described in section #eji7;a77#c71 during the taxable year with respect to such specified college or university4 7,h7 ,no double taxation ,any specified contribution which is taken into account under subsection 7a7 with respect to an applicable child for any taxable year shall not be taken into account with respect to another applicable child in any subsequent year4 7,i7 ,regulations ,the ,secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this paragraph1 including regulations that provide for the proper treatment of legally binding pledges and other types of specified contributions4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning #a year or more after the date of the enactment of this ,act4 #c4 ,information to be collected 7a7 ,program participation agreements ,section #dhg7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajid7;a77 is amended by adding at the end the following3 7#cj7 ,the institution has a written policy that prohibits as a factor in admissions decisions the consideration of-- 7,a7 direct or indirect donations from an applicant or family member of an applicant2 and 7,b7 the financial ability of an applicant or a family member of an applicant to make a donation4 4 7b7 ,title ,,iv audits ,section #dhg7;c7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajid7;c77 is amended by adding at the end the following3 7#h7 ,notwithstanding any other provisions of this title1 the ,secretary shall prescribe such regulations as may be necessary to provide for a requirement that an eligible institution1 in completing the compliance audit in accordance with paragraph 7#a77;,a71 shall submit a copy of the written policy described in subsection 7a77#cj74 4 7c7 ,duties of education statistics center 7#a7 ,higher ,education ,act of #aife ,section #acb7;i77#a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajae;a7i77#a77 is amended by adding at the end the following3 7,,aa7 ,with respect to students who are applicable children 7as described in section #agj7;f77#ai77;,f7 of the ,internal ,revenue ,code7 of any person who has made a direct or indirect donation to the institution or a related organization 7as defined in section #agj7;f77#ai77;,g77ii7 of such ,code7 during the #f-year period ending with the calendar year in which the student applied-- 7i7 the total number of such students who applied to the institution2 7ii7 the total number of such students who were admitted by the institution2 and 7iii7 the total number of such students who enrolled at the institution4 4 7#b7 ,education ,sciences ,reform ,act of #bjjb ,section #aec7;a77#a7 of the ,education ,sciences ,reform ,act of #bjjb 7#bj ,u4,s4,c4 #iedc7;a77#a77 is amended-- 7,a7 in subparagraph 7,n71 by striking and after the semicolon2 7,b7 in subparagraph 7,o71 by inserting and after the semicolon2 and 7,c7 by adding at the end the following3 7,p7 with respect to students who are applicable children 7as described in section #agj7;f77#ai77;,f7 of the ,internal ,revenue ,code7 of any person who has made a direct or indirect donation to the institution or a related organization 7as defined in section #agj7;f77#ai77;,g77ii7 of such ,code7 during the #f-year period ending with the calendar year in which the student applied-- 7i7 the total number of such students who applied to the institution2 7ii7 the total number of such students who were admitted by the institution2 and 7iii7 the total number of such students who enrolled at the institution2 4 7d7 ,institutional dissemination activities ,section #dhe7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajib7;a77 is amended-- 7#a7 in subparagraph 7,u71 by striking and after the semicolon2 7#b7 in subparagraph 7,v71 by striking the period and inserting a semicolon2 and 7#c7 by adding at the end the following3 7,w7 the institution's written policy that prohibits as a factor in admissions decisions the consideration of-- 7i7 direct or indirect donations from an applicant or family member of an applicant2 and 7ii7 the financial ability of an applicant or a family member of an applicant to make a donation2 and 7,x7 with respect to students who are applicable children 7as described in section #agj7;f77#ai77;,f7 of the ,internal ,revenue ,code7 of any person who has made a direct or indirect donation to the institution or a related organization 7as defined in section #agj7;f77#ai77;,g77ii7 of such ,code7 during the #f-year period ending with the calendar year in which the student applied-- 7i7 the total number of such students who applied to the institution2 7ii7 the total number of such students who were admitted by the institution2 and 7iii7 the total number of such students who enrolled at the institution4 4 7e7 ,information included on tax information returns 7#a7 ,in general ,section #fjcc of the ,internal ,revenue ,code of #aihf is amended by redesignating subsection 7n7 as subsection 7o7 and by inserting after subsection 7m7 the following new subsection3 7n7 ,additional information required for institutions of higher education ,every organization which is an institution of higher education 7as defined in section #aja of the ,higher ,education ,act of #aife7 and required to file a return under subsection 7a7 shall include with such return-- 7#a7 a copy of the written policy described in section #dhg7;a77#cj7 of ,higher ,education ,act of #aife1 and 7#b7 the information described in section #acb7;i77#a77;,,aa7 of such ,act4 4 7#b7 ,effective date ,the amendments made by paragraph 7#a7 shall apply to returns filed for taxable years beginning #a year or more after the date of the enactment of this ,act4