119-s936

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 936 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 936

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

 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.

 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 
2025'' or the ``WEST Act of 2025''.

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 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.
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