[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 217 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 217

  To amend the Internal Revenue Code of 1986 to repeal the 2 percent 
   excise tax on the net investment income of tax-exempt foundations.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 4, 2005

 Mr. Stearns 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 repeal the 2 percent 
   excise tax on the net investment income of tax-exempt foundations.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. REPEAL OF EXCISE TAX ON NET INVESTMENT INCOME OF TAX-EXEMPT 
              FOUNDATIONS.

    (a) Repeal.--Subsection (a) of section 4940 of the Internal Revenue 
Code of 1986 (relating to excise tax based on investment income) is 
repealed.
    (b) Conforming Amendments.--
            (1) Section 4940 of such Code is amended--
                    (A) by redesignating subsections (b), (c), and (d) 
                as subsections (a), (b), and (c), respectively,
                    (B) by striking subsection (e), and
                    (C) in subsection (a), as redesignated by 
                subparagraph (A), by striking ``(A) the tax imposed 
                under subsection (a) (computed as if such subsection 
                applied to such private foundation for the taxable 
                year),'' and inserting ``(A) an amount equal to 2 
                percent of the net investment income of such foundation 
                for the taxable year,''.
            (2) Section 4942(f)(3)(A) of such Code is amended by 
        striking ``section 4940(c)(3)(B)'' and inserting ``section 
        4940(b)(3)(B)''.
            (3) Section 4945(d)(4)(A) of such Code is amended by 
        striking ``section 4940(d)(2)'' and inserting ``section 
        4940(c)(2)''.
            (4) Section 4948(a) of such Code is amended by striking 
        ``section 4940(c)(2)'' and inserting ``section 4940(b)(2)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.
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