Private Foundation Excise Tax Simplification Act of 2019

I 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. 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Private Foundation 4 Excise Tax Simplification Act of 2019’’. 5 VerDate Sep 11 2014 02:32 Nov 08, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4953.IH H4953 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 4953 IH SEC. 2. MODIFICATION OF THE TAX RATE FOR THE EXCISE 1 TAX ON INVESTMENT INCOME OF PRIVATE 2 FOUNDATIONS. 3 (a) IN GENERAL.—Section 4940(a) of the Internal 4 Revenue Code of 1986 is amended by striking ‘‘2 percent’’ 5 and inserting ‘‘1.39 percent’’. 6 (b) ELIMINATION OF REDUCED TAX WHERE FOUN- 7 DATION MEETS CERTAIN DISTRIBUTION REQUIRE- 8 MENTS.—Section 4940 of such Code is amended by strik- 9 ing subsection (e). 10 (c) EFFECTIVE DATE.—The amendments made by 11 this section shall apply to taxable years beginning after 12 the date of the enactment of this Act. 13 Æ VerDate Sep 11 2014 02:32 Nov 08, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H4953.IH H4953 pamtmann on DSKBC07HB2PROD with BILLS