To amend the Internal Revenue Code of 1986 to clarify the definition of applicable educational institution for purposes of the excise tax based on the income of private colleges and universities.

Bill 118 hr 10400 aims to make changes to the Internal Revenue Code of 1986 in order to provide clarity on the definition of applicable educational institutions for the purpose of the excise tax based on the income of private colleges and universities. The bill seeks to ensure that the excise tax is applied accurately and fairly to these institutions.

The bill addresses concerns about the current definition of applicable educational institutions and aims to provide a more precise and consistent framework for determining which institutions are subject to the excise tax based on their income. By clarifying this definition, the bill aims to prevent any confusion or misinterpretation that may arise in the application of the excise tax.

Overall, Bill 118 hr 10400 seeks to promote transparency and fairness in the taxation of private colleges and universities, ensuring that they are held accountable for their income in a clear and consistent manner. The bill aims to provide a more accurate and equitable system for determining which institutions are subject to the excise tax, ultimately benefiting both the institutions themselves and the broader public.