This bill clarifies which private colleges and universities must pay a federal excise tax on their net investment income. Specifically, it amends the tax code to ensure that only institutions with more than 500 tuition-paying students at the graduate level or below are subject to this tax requirement. The change applies to taxable years beginning after December 31, 2024, meaning it takes effect starting with the 2025 tax year. The bill was introduced in December 2024 by Representatives Moore of Wisconsin and Grothman and was referred to the House Ways and Means Committee. This technical clarification aims to properly define which educational institutions fall under the federal excise tax rules on investment income.