S936-119

1. Short title This Act may be cited as the Woke Endowment Security Tax Act of 2025 or the WEST Act of 2025.

2. Excise tax on certain large private college and university endowments Subchapter H of chapter 42 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: There is hereby imposed on each specified applicable educational institution for the institution's first taxable year beginning in 2025 a tax equal to 6 percent of the aggregate fair market value of the assets of the institution at the end of the preceding taxable year. For purposes of this subchapter, with respect to a taxable year, the term specified applicable educational institution means— any applicable educational institution, other than an institution which is religious in nature, the aggregate fair market value of the assets of which at the end of the preceding taxable year (other than those assets which are used directly in carrying out the institution's exempt purpose) is at least $11,900,000,000, and any applicable educational institution— which operates a college on behalf of a State pursuant to State statute or contractual agreements, and the aggregate fair market value of the assets of which at the end of the preceding taxable year (other than those assets which are used directly in carrying out the institution's exempt purpose) is at least $10,500,000,000. For purposes of this section— The rules of section 4968(d) shall apply. The rules of section 4968(b)(2) shall apply. The table of sections for subchapter H of chapter 42 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item: The amendments made by this section shall apply to taxable years beginning after December 31, 2024. 4969.Excise tax on certain large private college and university endowments(a)Tax imposedThere is hereby imposed on each specified applicable educational institution for the institution's first taxable year beginning in 2025 a tax equal to 6 percent of the aggregate fair market value of the assets of the institution at the end of the preceding taxable year.(b)Specified applicable educational institutionFor purposes of this subchapter, with respect to a taxable year, the term specified applicable educational institution means—(1)any applicable educational institution, other than an institution which is religious in nature, the aggregate fair market value of the assets of which at the end of the preceding taxable year (other than those assets which are used directly in carrying out the institution's exempt purpose) is at least $11,900,000,000, and(2)any applicable educational institution—(A)which operates a college on behalf of a State pursuant to State statute or contractual agreements, and(B)the aggregate fair market value of the assets of which at the end of the preceding taxable year (other than those assets which are used directly in carrying out the institution's exempt purpose) is at least $10,500,000,000.(c)Other termsFor purposes of this section—(1)AssetsThe rules of section 4968(d) shall apply.(2)StudentThe rules of section 4968(b)(2) shall apply.. Sec. 4969. Excise tax on certain large private college and university endowments..