Religious Institution Exemption from Investment Income Excise Tax

Current understanding

HR9353 (119th Congress) proposes amending the Internal Revenue Code to exempt qualified religious institutions from the 1.4% excise tax on net investment income established by IRC §4968, which currently applies to certain large private colleges and universities meeting endowment and enrollment thresholds. The bill would narrow the base of institutions subject to the endowment tax by carving out religiously-affiliated schools. Status: introduced.

Evidence log

• 2026-07-22 — Protecting Access to Spiritual Treatment and Organized Religion Act of 2026: cross-connection with spiritual-treatment-religious-tax-treatment: Related religious-liberty tax proposals affecting treatment of religious organizations under the IRC. (novelty: 2)
• 2026-07-16 — Fair Treatment of Religious Organizations Act of 2026: cross-connection with fair-treatment-religious-organizations-act: Both bills target federal tax treatment of religious organizations; the Fair Treatment Act may overlap with or complement the investment income excise tax exemption proposal. (novelty: 2)

Open questions

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