[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3465 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                S. 3465

To amend the Internal Revenue Code of 1986 to apply a 6 percent excise 
 tax on large endowments of certain private colleges and universities, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 12, 2023

  Mr. Cotton 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 apply a 6 percent excise 
 tax on large endowments of certain private colleges and universities, 
                        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. SHORT TITLE.

    This Act may be cited as the ``Woke Endowment Security Tax Act of 
2023'' or the ``WEST Act of 2023''.

SEC. 2. EXCISE TAX ON CERTAIN LARGE PRIVATE COLLEGE AND UNIVERSITY 
              ENDOWMENTS.

    (a) In General.--Subchapter H of chapter 42 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 4969. EXCISE TAX ON CERTAIN LARGE PRIVATE COLLEGE AND UNIVERSITY 
              ENDOWMENTS.

    ``(a) Tax Imposed.--There is hereby imposed on each specified 
applicable educational institution for the institution's first taxable 
year beginning in 2023 a tax equal to 6 percent of the aggregate fair 
market value of the assets of the institution at the end of the 
preceding taxable year.
    ``(b) Specified Applicable Educational Institution.--For purposes 
of this subchapter, with respect to a taxable year, the term `specified 
applicable educational institution' means--
            ``(1) any applicable educational institution, other than an 
        institution which is religious in nature, the aggregate fair 
        market value of the assets of which at the end of the preceding 
        taxable year (other than those assets which are used directly 
        in carrying out the institution's exempt purpose) is at least 
        $12,200,000,000, and
            ``(2) any applicable educational institution--
                    ``(A) which operates a college on behalf of a State 
                pursuant to State statute or contractual agreements, 
                and
                    ``(B) the aggregate fair market value of the assets 
                of which at the end of the preceding taxable year 
                (other than those assets which are used directly in 
                carrying out the institution's exempt purpose) is at 
                least $9,000,000,000.
    ``(c) Other Terms.--For purposes of this section--
            ``(1) Assets.--The rules of section 4968(d) shall apply.
            ``(2) Student.--The rules of section 4968(b)(2) shall 
        apply.''.
    (b) Clerical Amendment.--The table of sections for subchapter H of 
chapter 42 of the Internal Revenue Code of 1986 is amended by adding at 
the end the following new item:

``Sec. 4969. Excise tax on certain large private college and university 
                            endowments.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2022.
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