Sec. 3. Excise taxes on restricted donations to higher education institutions
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Section 4966 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: In the case of any restricted distribution from a donor advised fund to an institution of higher education (as defined in section 170(p)(2))— such distributions shall be treated as a taxable distribution for purposes of this section, and subsection
(a)shall be applied by substituting 100 percent for 20 percent . For purposes of this subsection, the term restricted distribution means a distribution restricted by the fund to a use other than scholarships. . Section 4945 of such Code is amended by adding at the end the following new subsection: In the case of any restricted distribution from a private foundation to an institution of higher education (as defined in section 170(p)(2))— such distribution shall be treated as a taxable expenditure for purposes of this section, and subsection (a)(1) shall be applied by substituting 100 percent for 20 percent . For purposes of this subsection, the term restricted distribution means a distribution restricted by the foundation to a use other than scholarships. . The amendments made by this section shall apply to distributions after the date of the enactment of this Act.