This bill would exempt qualified religious institutions from paying a federal excise tax on investment income. Currently, certain organizations including colleges and universities with large endowments must pay a 1.25 percent excise tax on their net investment income, but this bill would create an exception for religious institutions that meet specific criteria. To qualify, an institution must have been established after 1776 in association with a religious organization, have at least 25 percent of its governing board appointed or approved by that religious organization, maintain a formal agreement with the organization, and have a published mission based on religious tenets. The exemption would take effect for tax years beginning after December 31, 2025, and the Treasury Department must issue implementing regulations by the end of 2026.
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.