Bill > HR4462

This bill introduces an excise tax targeting certain investments made by large private colleges and universities with assets over $1 billion, specifically focusing on investments in entities listed on various government watchlists such as the Commerce Department's Entity List, Military End User List, and Unverified List. The tax consists of two main components: first, a 50% tax on the fair market value of listed investments acquired during a taxable year, and second, a 100% tax on net income from "1-year listed investments" which includes income, gains, and associated deductions. A "listed investment" is defined broadly as stock, debt, or derivatives related to entities on specific government lists. The bill applies to private educational institutions (excluding state colleges) and includes provisions for handling investments through pooled funds like regulated investment companies and exchange-traded funds. The legislation aims to discourage private educational institutions from investing in entities that may be considered potentially problematic from a national security or regulatory perspective. The tax would be implemented in taxable years following the establishment of a "listed persons list" by the Secretary of the Treasury, with specific provisions to avoid retroactive application to investments and income acquired before the effective date.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/4462/all-info