To amend the Internal Revenue Code of 1986 to exempt qualified religious institutions from the excise tax on investment income.

This bill would change federal tax law so that qualified religious institutions do not have to pay the excise tax on net investment income that applies to certain private colleges and universities. To qualify, an institution must have been established by or in association with a church and must have one of several formal ties to it, such as at least 25 percent of its top governing board appointed or approved by the church, a written agreement with the church, or a formal religious designation from the church. The institution must also have a published mission approved by its governing body that includes or refers to religious beliefs or teachings. The change would apply to tax years beginning after December 31, 2025, and the Treasury Department would have to issue guidance by December 31, 2026.

Full text and official record on Congress.gov

Sponsors

• Mike Kelly Republican sponsor
• 1 cosponsors