MODIFICATION OF THE TAX RATE FOR THE EXCISE TAX ON INVESTMENT INCOME OF PRIVATE FOUNDATIONS.

SEC. 206. MODIFICATION OF THE TAX RATE FOR THE EXCISE TAX ON INVESTMENT INCOME OF PRIVATE FOUNDATIONS. (a) In General.—Section 4940(a) is amended by striking “2 percent” and inserting “1.39 percent”. (b) Elimination of Reduced Tax Where Foundation Meets Certain Distribution Requirements.—Section 4940 is amended by striking subsection (e). (c) [26 U.S.C. 4940 note] Effective Date.—The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.