Certain students not taken into account for purposes of calculation to determine if certain private colleges and universities are subject to excise tax on net investment income

(a) In general Section 4968(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (3) Certain students not taken into account in determining endowment threshold For purposes of paragraph (1)(D), a student shall not be taken into account with respect to an eligible educational institution unless such student meets the student eligibility requirements under section 484(a)(5) of the Higher Education Act of 1965 (20 U.S.C. 1091(a)(5)).. (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2025.