The Protecting Endowments from Our Adversaries Act would impose new federal excise taxes on private colleges and universities with endowments exceeding $1 billion if they invest in companies listed on U.S. government national security blacklists. Specifically, colleges would face a 50 percent tax on the fair market value of any new investments acquired in banned entities—including those on the Commerce Department's Entity List, the Military End User List, the Unverified List, and the FCC's Covered List—and a 100 percent tax on any net income or gains generated from investments held in these entities for a full year. The bill affects only private colleges and universities, exempting public institutions, and the taxes would take effect either at the end of the first calendar year after enactment or once the Treasury Department establishes the complete list of banned entities, whichever comes first. Existing investments acquired before these deadlines would be grandfathered in and not subject to taxation. The Treasury Department would be responsible for maintaining the list of banned investment entities and establishing certification procedures for investment funds to verify they contain no restricted holdings.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.