04 November 2019

News Alert: Legislation to Simplify Private Foundation Excise Tax Introduced In House

by Sara Barba

WASHINGTON, D.C.— A bill was introduced in Congress that will increase giving capacity at grantmaking organizations. Reps. Danny Davis (D-IL) and George Holding (R-NC) introduced H.R. 4953, the Private Foundation Excise Tax Simplification Act, which would simplify the current two-tier private foundation excise tax to a revenue-neutral rate of 1.39 percent.

“The House has twice passed legislation that would streamline the private foundation excise tax in the past five years with bipartisan support. Simplifying the complicated tax has been an ACR priority for several years because it would provide certainty to grantmakers so they can focus on the needs in their communities and respond effectively without the threat of a tax penalty,” said Sandra Swirski, executive director of ACR.

The 1.39 percent private foundation excise tax provision was included in the Taxpayer Certainty and Disaster Tax Relief Act of 2019 that passed the House Ways and Means Committee in June. The package has yet to be voted on in the full House.