,,ii #aai? ,,congress #a/ ,session ,s4 #bjde ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,june #ab1 #bjbe ,mr4 ,ricketts 7= himself1 ,mr4 ,cotton1 & ,mrs4 ,fis*]7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to impose an excise tax on c]ta9 inve/m5ts ( private colleges & univ]sities4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,protect+ ,end[m5ts f ,our ,adv]s>ies ,act4 #b4 ,excise tax on c]ta9 inve/m5ts ( private colleges & univ]sities 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 inve/m5ts ( private colleges & univ]sities 7a7 ,tax on acquisition ( li/$ inve/m5ts ,9 ! case ( any specifi$ educational in/itution :i* acquires 7directly or indirectly ?r\gh any *a9 ( own]%ip7 "o or m li/$ inve/m5ts dur+ any taxable ye>1 !re is h]eby impos$ = su* taxable ye> a tax equal to #ej p]c5t ( ! fair m>ket values ( su* inve/m5ts det]m9$ z ( ! dates ( su* acquisitions4 7b7 ,tax on net income f #a-,ye> li/$ inve/m5ts 7#a7 ,9 g5]al ,!re is h]eby impos$ on ea* specifi$ educational in/itution = ! taxable ye> a tax equal to #ajj p]c5t ( ! excess 7if any7 (-- 7,a7 ! sum (-- 7i7 all income receiv$ ) respect to any #a-ye> li/$ inve/m5t dur+ su* taxable ye>1 plus 7ii7 all ga9s recogniz$ ) respect to ! sale or o!r disposition ( any #a-ye> li/$ inve/m5ts dur+ su* taxable ye>1 ov] 7,b7 ! sum (-- 7i7 all d$uctions prop]ly allocable to income describ$ 9 subp>agraph 7,a77i71 plus 7ii7 all losses recogniz$ ) respect to ! sale or o!r disposition ( any #a-ye> li/$ inve/m5ts dur+ su* taxable ye>4 7#b7 #a-ye> li/$ inve/m5t ,= purposes ( ?is section1 ) respect to any income receiv$ or ga9 or loss recogniz$1 ! t]m #a-ye> li/$ inve/m5t means any li/$ inve/m5t :i* 0 su* a li/$ inve/m5t at all times dur+ ! #a-ye> p]iod end+ on ! date su* income 0 receiv$ or su* ga9 or loss 0 recogniz$4 7c7 ,li/$ inve/m5t ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m li/$ inve/m5t means any specifi$ int]e/ ) respect to any p]son li/$ on "o or m (-- 7,a7 ! ,entity ,li/ ma9ta9$ by ! ,secret>y ( ,comm]ce1 7,b7 ! ,milit>y ,end ,us] 7,,meu7 ,li/ ma9ta9$ by ! ,secret>y ( ,comm]ce1 7,c7 ! ,unv]ifi$ ,li/ ma9ta9$ by ! ,secret>y ( ,comm]ce1 or 7,d7 ! li/ ma9ta9$ by ! ,f$]al ,communications ,commission ( equipm5t & s]vices cov]$ by section #b ( ! ,secure & ,tru/$ ,communications ,networks ,act ( #bjai 7commonly ref]r$ to z ! ,,fcc ,cov]$ ,li/74 7#b7 ,li/$ p]sons li/ ,! ,secret>y %all e/abli% 7n lat] ?an #fj days aft] ! date ( ! enactm5t ( ?is section71 update1 & ma9ta9 a li/ ( ! p]sons :i* are li/$ on "o or m ( ! li/s describ$ 9 p>agraph 7#a74 7#c7 ,specifi$ int]e/ ,! t]m specifi$ int]e/ means1 ) respect to any p]son-- 7,a7 /ock or any o!r equity or pr(its int]e/ ( su* p]son1 7,b7 debt issu$ by su* p]son1 or 7,c7 any contract or d]ivative ) respect to any int]e/ describ$ 9 subp>agraph 7,a7 or 7,b74 7#d7 ,inclusion ( c]ta9 pool$ funds 7,a7 ,9 g5]al ,any specifi$ int]e/ acquir$ ?r\gh a regulat$ inve/m5t company1 ex*ange trad$ fund1 or any o!r pool$ inve/m5t %all n fail to be treat$ z acquir$ ?r\gh a *a9 ( own]%ip describ$ 9 subsection 7a74 7,b7 ,c]tifications ( pool$ funds ,! ,secret>y %all e/abli% proc$ures "u :i* regulat$ inve/m5t companies1 ex*ange trad$ funds1 & o!r pool$ inve/m5ts may be c]tifi$ by ! ,secret>y z n hold+ any li/$ inve/m5ts4 7d7 ,specifi$ educational in/itution ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m specifi$ educational in/itution means1 ) respect to any taxable ye>1 any eligible educational in/itution 7z def9$ 9 section #be;,a7f77#b77-- 7,a7 :i* is n describ$ 9 ! fir/ s5t5ce ( section #eaa7;a77#b77;,b7 7relat+ to ,/ate colleges & univ]sities71 & 7,b7 ! 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 9 excess ( #a1jjj1jjj1jjj4 7#b7 ,treatm5t ( relat$ organizations ,= purposes ( subsections 7a7 & 7b71 assets held by any relat$ organization 7z def9$ 9 section #difh7;d77#b77 ) respect to an educational in/itution %all be treat$ z held by su* educational in/itution1 except t-- 7,a7 su* assets %all n be tak5 into acc\nt ) respect to m ?an #a educational in/itution1 & 7,b7 unless su* organization is controll$ by su* in/itution or is describ$ 9 section #eji7;a77#c7 ) respect to su* in/itution1 assets :i* are n int5d$ or available = ! use or b5efit ( su* educational in/itution %all n be tak5 into acc\nt4 7e7 ,valuation ( debt ,= purposes ( subsection 7a71 ! fair m>ket value ( any debt %all be treat$ z be+ ! pr9cipal am\nt ( su* debt4 7f7 ,regulations ,! ,secret>y may issue su* regulations or o!r guidance z may be necess>y or appropriate to c>ry out ! purposes ( ?is section1 includ+ regulations or o!r guidance provid+ = ! prop] application ( ?is section ) respect to in/itutionally relat$ f\ndations & pool$ inve/m5ts4 4 7b7 ,cl]ical am5dm5ts 7#a7 ,! 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 inve/m5ts ( private colleges & univ]sities4 4 7#b7 ,! head+ ( sub*apt] ,h ( *apt] #db ( su* ,code 7& ! item relat+ to su* sub*apt] 9 ! table ( sub*apt]s = su* *apt]7 are ea* am5d$ by /rik+ ,tax ,bas$ on ,inve/m5t ,income & ins]t+ ,taxes ,bas$ on ,inve/m5ts4 7c7 ,effective dates 7#a7 ,9 g5]al ,except z o!rwise provid$ 9 ?is subsection1 ! am5dm5ts made by ?is section %all apply to taxable ye>s end+ aft] ! e>li] (-- 7,a7 ! end ( ! fir/ cal5d> ye> beg9n+ aft] ! date ( ! enactm5t ( ?is ,act1 or 7,b7 ! end ( ! #a-ye> p]iod beg9n+ on ! date on :i* ! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 e/abli%es ! li/$ p]sons li/ "u section #difi7;c77#b7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z add$ by ?is section74 7#b7 ,c]ta9 prior acquisitions ,section #difi7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z add$ by ?is section7 %all n apply to inve/m5ts acquir$ be=e ! end ( ! cal5d> ye> ref]r$ to 9 p>agraph 7#a77;,a74 7#c7 ,c]ta9 prior income & ga9s ,section #difi7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z add$ by ?is section7 %all n apply to income receiv$1 or ga9s or losses recogniz$1 be=e ! end ( ! #a-ye> p]iod ref]r$ to 9 p>agraph 7#a77;,b74