Spending act adjusts excise tax rate on certain private foundations’ net investment income

On Dec. 20, 2019, President Trump signed the Further Consolidated Appropriations Act, 2020, which partly funds the federal government through fiscal year 2020. The act also contains changes to the Internal Revenue Code (IRC) that impact tax-exempt organizations. In addition to repealing the increase in unrelated business taxable income (UBTI) for certain fringe benefits enacted as part of the 2017 Tax Cuts and Jobs Act (TCJA), the spending act also adjusts the excise tax rate imposed on the net investment income (NII) of certain private foundations. 

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