,,ii  #aag? ,,congress  #a/ ,session    
,s4 #aedg  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,may #aa1 #bjba,mr4    
,cotton introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to apply a #a     
p]c5t excise tax on l>ge end[m5ts (     
c]ta9 private colleges & univ]sities1 to
 require t su* in/itutions di/ribute at 
lea/ #e p]c5t ( l>ge end[m5ts 9 ea*     
taxable ye>1 & = o!r purposes4  #a4     
,%ort title ,?is ,act may be cit$ z !   
,ivory ,t[] ,tax ,act ( #bjba4  #b4     
,excise tax on c]ta9 l>ge private       
college & univ]sity end[m5ts  7a7 ,9    
g5]al ,sub*apt] ,h ( *apt] #db ( !      
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new section3  
#difi4 ,excise tax on c]ta9 l>ge private
 college & univ]sity end[m5ts  7a7 ,tax 
impos$ ,!re is h]eby impos$ on ea*      
specifi$ applicable educational         
in/itution = ! taxable ye> a tax equal  
to #a p]c5t ( ! aggregate fair m>ket    

value ( ! assets ( ! in/itution at ! end
 ( ! prec$+ taxable ye>4  7b7 ,specifi$ 
applicable educational in/itution ,=    
purposes ( ?is sub*apt]1 ! t]m specifi$ 
applicable educational in/itution means 
any applicable educational in/itution1  
o!r ?an an in/itution :i* is religi\s 9 
nature1 ! aggregate fair m>ket value ( !
 assets ( :i* at ! end ( ! prec$+       
taxable ye> 7o!r ?an ^? assets :i* are  
us$ directly 9 c>ry+ out ! in/itution's 
exempt purpose7 is at lea/              
#b1ejj1jjj1jjj4  7c7 ,o!r t]ms ,=       
purposes ( ?is section-- 7#a7 ,assets ,!
 rules ( section #difh7;d7 %all apply4  
7#b7 ,/ud5t ,! rules ( section          
#difh7;b77#b7 %all apply4  4  7b7       
,cl]ical am5dm5t ,! table ( sections =  
sub*apt] ,h ( *apt] #db ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new item3  ,sec4      
#difi4 ,excise tax on c]ta9 l>ge private
 college & univ]sity end[m5ts4  4  7c7  
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      

beg9n+ aft] ,decemb] #ca1 #bjba4  #c4   
,failure to di/ribute end[m5t assets    
7a7 ,9 g5]al ,sub*apt] ,h ( *apt] #db ( 
! ,int]nal ,rev5ue ,code ( #aihf1 z     
am5d$ by section #b1 is fur!r am5d$ by  
add+ at ! end ! foll[+ new section3     
#digj4 ,failure to di/ribute end[m5t    
assets  7a7 ,tax impos$ ,!re is h]eby   
impos$ on ! undi/ribut$ excess end[m5t  
am\nt ( ea* specifi$ applicable         
educational in/itution = ! taxable ye>1 
:i* has n be5 di/ribut$ be=e ! fir/ day 
( ! second 7or any succe$+7 taxable ye> 
foll[+ su* taxable ye> 7if su* fir/ day 
falls )9 ! taxable p]iod71 a tax equal  
to #cj p]c5t ( su* undi/ribut$ excess   
end[m5t am\nt rema9+ undi/ribut$ at !   
beg9n+ ( su* second 7or succe$+7 taxable
 ye>4 ,! tax impos$ by ?is section %all 
n apply to ! undi/ribut$ excess end[m5t 
am\nt ( a specifi$ applicable           
educational in/itution to ! ext5t t !   
f\ndation fail$ to di/ribute any am\nt  
solely because ( an incorrect valuation 
( assets1 if-- 7#a7 ! failure to value !

 assets prop]ly 0 n willful & 0 due to  
reasonable cause1  7#b7 su* am\nt is    
di/ribut$ z qualify+ di/ributions by !  
in/itution dur+ ! all[able di/ribution  
p]iod1  7#c7 ! in/itution notifies !    
,secret>y t su* am\nt has be5 di/ribut$ 
z qualify+ di/ributions to correct su*  
failure1 &  7#d7 su* di/ribution is     
treat$1 by reason ( subsection 7e77#b71 
z made out ( ! undi/ribut$ income = !   
taxable ye> = :i* a tax w\ld 7except =  
?is p>agraph7 h be5 impos$ "u ?is       
subsection4  7b7 ,additional tax ,9 any 
case 9 :i* an initial tax is impos$ "u  
subsection 7a7 on ! undi/ribut$ excess  
end[m5t am\nt ( any specifi$ applicable 
educational in/itution = any taxable    
ye>1 if any portion ( su* am\nt rema9s  
undi/ribut$ at ! close ( ! taxable      
p]iod1 !re is h]eby impos$ a tax equal  
to #ajj p]c5t ( ! am\nt rema9+          
undi/ribut$ at su* "t4  7c7 ,undi/ribut$
 excess end[m5t am\nt ,= purposes ( ?is 
section1 ! t]m undi/ribut$ excess       
end[m5t am\nt means1 ) respect to any   

specifi$ applicable educational         
in/itution = any taxable ye> z ( any "t1
 ! am\nt by :i*-- 7#a7 ! di/ributable   
am\nt = su* taxable ye>1 exce$s  7#b7 ! 
qualify+ di/ributions made be=e su* "t  
out ( su* di/ributable am\nt4  7d7      
,di/ributable am\nt ,= purposes ( ?is   
section1 ! t]m di/ributable am\nt means1
 ) respect to any specifi$ applicable   
educational in/itution = any taxable    
ye>1 an am\nt equal to #e p]c5t ( !     
aggregate fair m>ket value ( ! assets ( 
! in/itution at ! end ( ! prec$+ taxable
 ye>4 ,! rules ( section #difh7;d7 %all 
apply = purposes ( ?is section4  7e7    
,qualify+ di/ributions ,= purposes ( ?is
 section-- 7#a7 ,9 g5]al ,! t]m qualify+
 di/ribution has ! mean+ giv5 su* t]m 9 
section #didb7;g74  7#b7 ,o!r rules ,!  
rules ( subsections 7h7 & 7i7 ( section 
#didb %all apply4  7f7 ,taxable p]iod2  
all[able di/ribution p]iod ,! rules (   
p>agraphs 7#a7 & 7#b7 ( section         
#didb7;j7 %all apply = purposes ( ?is   
section4  4  7b7 ,cl]ical am5dm5t ,!    

table ( sections = sub*apt] ,h ( *apt]  
#db ( ! ,int]nal ,rev5ue ,code ( #aihf1 
z am5d$ by section #b1 is fur!r am5d$ by
 add+ at ! end ! foll[+ new item3  ,sec4
 #digj4 ,failure to di/ribute end[m5t   
assets4  4  7c7 ,effective date ,!      
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjba4  #d4 ,transf] ( funds ,!    
,secret>y ( ! ,treasury 7or su*         
,secret>y's delegate7 %all f "t to "t   
transf] f ! g5]al fund ( ! ,treasury to 
! ,secret>y ( ,labor am\nts equal to !  
increase 9 rev5ues by reason ( !        
enactm5t ( sections #b & #c1 = ! purpose
 ( exp&+ opportunities relat+ to        
appr5tice%ip programs regi/]$ "u !      
,national ,appr5tice%ip ,act4 ,su* funds
 %all be available until exp5d$ to c>ry 
out activities "u su* ,act ?r\gh grants1
 coop]ative agreem5ts1 contracts & o!r  
arrangem5ts1 ) ,/ates & o!r appropriate 
entities4