[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4090 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 4090

 To amend the Internal Revenue Code of 1986 to modify the rate of the 
 excise tax on investment income of private foundations, and for other 
                               purposes.


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                    IN THE HOUSE OF REPRESENTATIVES

                           November 17, 2009

   Mr. Davis of Illinois (for himself, Mr. Lewis of Georgia, and Mr. 
   Tiberi) 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 rate of the 
 excise tax on investment income of private foundations, and for other 
                               purposes.

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

SECTION 1. MODIFICATION OF EXCISE TAX ON INVESTMENT INCOME OF PRIVATE 
              FOUNDATIONS.

    (a) In General.--Subsection (a) of section 4940 of the Internal 
Revenue Code of 1986 is amended by inserting ``(1.32 percent in the 
case of taxable years beginning before January 1, 2015)'' after ``2 
percent''.
    (b) Temporary Elimination of Reduced Tax Where Foundation Meets 
Certain Distribution Requirements.--Subsection (e) of section 4940 of 
such Code is amended by adding at the end the following new paragraph:
            ``(7) Application.--Paragraph (1) shall not apply for any 
        taxable year beginning after December 31, 2009, and before 
        January 1, 2015.''.
    (c) Study.--Not later than December 31, 2013, the Secretary of the 
Treasury shall conduct and submit to the Congress a study which 
examines the effect of the change in the rate of tax under section 4940 
of the Internal Revenue Code of 1986 (as amended by this section) has 
on the level of grantmaking by private foundations.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.
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