INCREASE IN PENALTY EXCISE TAXES RELATING TO PUBLIC CHARITIES, SOCIAL WELFARE ORGANIZATIONS, AND PRIVATE FOUNDATIONS.

SEC. 1212. INCREASE IN PENALTY EXCISE TAXES RELATING TO PUBLIC CHARITIES, SOCIAL WELFARE ORGANIZATIONS, AND PRIVATE FOUNDATIONS.(a) Taxes on Self-Dealing and Excess Benefit Transactions.—(1) In general.—Section 4941(a) (relating to initial taxes) is amended—(A) in paragraph (1), by striking “5 percent” and inserting “10 percent”, and(B) in paragraph (2), by striking “2½ percent” and inserting “5 percent”.(2) Increased limitation for managers on self-dealing.—Section 4941(c)(2) is amended by striking “$10,000” each place it appears in the text and heading thereof and inserting “$20,000”.(3) Increased limitation for managers on excess benefit transactions.—Section 4958(d)(2) is amended by striking “$10,000” and inserting “$20,000”.(b) Taxes on Failure to Distribute Income.—Section 4942(a) (relating to initial tax) is amended by striking “15 percent” and inserting “30 percent”.(c) Taxes on Excess Business Holdings.—Section 4943(a)(1) (relating to imposition) is amended by striking “5 percent” and inserting “10 percent”.(d) Taxes on Investments Which Jeopardize Charitable Purpose.—(1) In general.—Section 4944(a) (relating to initial taxes) is amended by striking “5 percent” both places it appears and inserting “10 percent”.(2) Increased limitation for managers.—Section 4944(d)(2) is amended—(A) by striking “$5,000,” and inserting “$10,000,”, and(B) by striking “$10,000.” and inserting “$20,000.”.(e) Taxes on Taxable Expenditures.—(1) In general.—Section 4945(a) (relating to initial taxes) is amended—120 STAT. 1075(A) in paragraph (1), by striking “10 percent” and inserting “20 percent”, and(B) in paragraph (2), by striking “2½ percent” and inserting “5 percent”.(2) Increased limitation for managers.—Section 4945(c)(2) is amended—(A) by striking “$5,000,” and inserting “$10,000,”, and(B) by striking “$10,000.” and inserting “$20,000.”.(f) Effective Date.—The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.