1. Short title
This Act may be cited as the “Private Foundation Excise Tax Simplification Act of 2019”.
Private Foundation Excise Tax Simplification Act of 2019
A BILL
To amend the Internal Revenue Code of 1986 to modify the tax rate for excise tax on investment income of private foundations.
2. Modification of the tax rate for the excise tax on investment income of private foundations
In general— Section 4940(a) of the Internal Revenue Code of 1986 is amended by striking “2 percent” and inserting “1.39 percent”.
Elimination of reduced tax where foundation meets certain distribution requirements— Section 4940 of such Code is amended by striking subsection (e).
Effective date— The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.