II 111th CONGRESS 1st Session S. 676 IN THE SENATE OF THE UNITED STATES March 24, 2009 Mr. Schumer (for himself, Ms. Stabenow, and Mr. Levin) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to modify the tax rate for excise tax on investment income of private foundations.

1.

Modification of the tax rate for the 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 striking 2 percent and inserting 1.32 percent. (b)

Elimination of reduced tax where foundation meets certain distribution requirements

Section 4940 of the Internal Revenue Code of 1986 is amended by striking subsection (e). (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.