S. 936

119 S936 IS: Woke Endowment Security Tax Act of 2025
 U.S. Senate
 2025-03-11
 text/xml
 EN
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 II  119th CONGRESS  1st Session  S. 936  IN THE SENATE OF THE UNITED STATES   March 11 (legislative day, March 10), 2025   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.
1.
Short title
This Act may be cited as the   Woke Endowment Security Tax Act of 2025   or the   WEST Act of 2025  .
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:
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 2025 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 $11,900,000,000, 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 $10,500,000,000.
(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, 2024.