I 111th CONGRESS 1st Session H. R. 4090 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.

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.